Wednesday 3 August 2011

MARKETING PLAN

  
RCM is a very unique concept of selling the products directly from company to consumers. The entire system works in the interest of consumers. The best part of this concept is that you do not have to do anything different from what you have been doing till now. All you are required to do is to purchase RCM Products and get your registration through internet. Your first purchase should be in certain amount for getting registered. From then onwards, then RCM Products, because :-
  1. You are getting best quality at reasonable price.
  2. No Chance of duplicate goods.
  3. You get promotional amount as well.
 


After getting registered whenever you purchase RCM products you get performance bonus on your purchase. And if you promote to join RCM and purchase RCM products among more people, you may get additional promotional amount on their purchase also. Day by day as your group will expand your promotional amount will also increase.
Company distributes promotional amount according to marketing plan given in the link.
Business Volume is the actual value on which all the calculations for promotional amount is done. It may be equal or less than M.R.P. .
A Leg & B Leg The leg with the higher business volume is called A leg & lower is called B Leg.


 
 PERFORMANCE BONUS      
         B.V.
Difference Bonus
*5000 to 9999
 10.0%
10,000 to 19,999
 11.5%
20,000 to 39,999
 13.0%
40,000 to 69,999
 15.0%
70,000 to 1, 14,999
 17.0%
1, 15,000 to 1, 69,999
 19.0%
1, 70,000 to 2, 59,999
 21.0%
2, 60,000 to 3, 49,999
 23.0%
3, 50,000 & above
 25.0%
         
* The distributors who are below the slab of 5000 and are purchasing, will also be given 10% performance bonus on their Purchase B.V. & will be deducted on difference basis from the amount which will be earned on achieving 5000 to 9999 slab.

*Note:-performance bonus will be given to only those distributors who have their own purchase in the same month. Bonus is calculated on the basis of total b.v. of your group. You get net bonus after deducting the bonus of your down line groups. This can be understood by these hypothetical examples.
     
Example 1
Position of Business
 
Total Business
8,000 B.V.
A Leg Joining
2,000 B.V.
A Leg Purchase
2,000 B.V.
B Leg Joining
2,000 B.V.
B Leg Purchase
1,000 B.V.
Purchase By Self
1,000 B.V.
Calculation of Bonus
 
Total Group’s Bonus
8,000 x 10%=800
Deduct Purchase of A Leg
2,000 x 10.0%=(-)200
Deduct Purchase of B Leg
1,000 x 10.0%=(-)100


Net Bonus
Rs. 500
       
Example 2
Position of Business
 
Total Business
1,72,000 B.V.
A Leg
1,10,000 B.V.
B Leg
60,000 B.V.
Purchase By Self
2,000 B.V.
Calculation of Bonus
 
Total Group’s Bonus
1,72,000 x 21%=36,120
Deduct Purchase of A Leg
1,10,000 x 17.0%=(-)18,700
Deduct Purchase of B Leg
60,000 x 15.0%=(-)9,000


Net Bonus
Rs. 8,420


LEADERSHIP BONUS          
Rs. 2000 monthly on reaching 350000 BV and having minimum 70000 BV in B-Leg.
Rs. 4000 monthly to Royalty Achievers with 2 to 6 percent royalty.
  This will be given after fulfilling the following terms and conditions: -
  1. For achieving leadership bonus, Star Pin Achievers and Royalty achievers will have to do a purchase of 750 BV and 1500 BV respectively in the particular month.
  2. Leadership Bonus will be payable from the second month of qualifying the required slab.
  3. Maximum one bonus will be given at one time.
  4. Leadership Bonus will be applicable only on continuation of business to the same level.

ROYALTY BONUS      
One Downline B.V./Purchase More Than
Other Downline B.V./Purchase More Than
Royalty* on First Group B.V./Purchase
3,50,000 B.V.
1,15,000 B.V.
  2%
3,50,000 B.V.
1,70,000 B.V.
  3%
3,50,000 B.V.
2,60,000 B.V.
  4%
3,50,000 B.V.
3,50,000 B.V.
  6%
     
*Royalty will be calculated on Differential basis and royalty will be given to only those distributors who will acquire business volume according to the given table and will also fulfill the following conditions: --
 
  1. Purchase RCM Products worth minimum 1500 B.V in every month.
  2. Take minimum 2 meetings every month and minimum 27 in a year as assigned by the company. In the absence of assignment, the distributor shall take meetings after obtaining the approval from the company.
  3. Any other condition for which company deemed to be beneficial in the interest of business as a whole.
 
This can be understood by this hypothetical example:-


Total Royalty
6,00,000* 6%
= 36,000/-
Less Royalty of A
4,00,000* 3%
= 12,000/-
Net Royalty
 
= 24,000/-

PROMOTIONAL AMOUNT     
     
Purchase Promotional Amount
Distributors who will purchase of Rs. 1000/- or more per month will be paid monthly promotional amount. Under this, 4% of the company’s total purchase turnover (after deducting amount given in accidental death benefit) will be distributed through lucky draw. 1 % out of 4% will be kept for 11,000/- draw, 1% will be kept for 5000/- draw and remaining 2% will be kept for 1000/- draw.
Distributor who will regularly do a monthly purchase of 1000/- or more till three months, their names will be added to the draw and their name will remain in the draw till the time they will continue their purchase of 1000/- or more monthly. Every 1000/- regular purchase will be considered one eligibility and if more regular purchases are done then the eligibility will increase in the multiple of 1000/-.
For Example: -
Rs. 1000/- purchase gets 1 entry
Rs. 2000/- purchase gets 2 entries and so on
The distributors who have already entered the loyalty club, even if their per month purchase amount is 1000/- the eligibility will be counted on the basis of entries already made. 


PERFORMANCE PROMOTIONAL AMOUNT

 1% of the company’s total turnover will be distributed as Performance Promotional Amount and the amount will be distributed on the basis of average of points.
Currently, this amount will be distributed from Star pin to Pearl pin achievers and points will be calculated to achieve maximum Emerald Pin. The calculation of points from star pin to pearl pin will be done as follows. The pin achieved till may 2011 will be considered for calculation.
  1. In case of maintaining same Pin constant – 4 points per month.
  2. In case of maintaining Pin below 1 level from current Pin constant – 2 points per month.
  3. In case of maintaining Pin below 2 level from current Pin constant – 1 points per month.
  4. In case of maintaining Pin above 1 level new Pin from current Pin constant – 8 points.
  5. In case of maintaining Pin above 2 levels new Pin from current Pin constant – 8 points per level.

Note: -
  1. There is no Pin below Star Pin and so if it goes below this level then there will be no points.
  2. In case of increase in Pin level, the 4 points of maintaining the pin and 8 points of increasing will be awarded simultaneously.
  3. The payment of Performance Promotional Amount for points earned during June to September 2011 will be awarded in September 2011, for points earned from October to December 2011 will be awarded in December 2011 and for points earned from January to March 2012 will be awarded in March 2012.
Note –
The benefit of Yearly promotional benefit in future will be given to only those distributors who have entered the loyalty club already and after entry they are regularly doing a purchase of Rs. 1000/- or more monthly and those whose 12 months are not completed till yet, their yearly promotional benefit will be paid on the basis of their earned points till May 2011. This amount will be paid in that month in which their entry in loyalty club completes 12 months. For this eligibility, they will have to continue a monthly purchase of Rs. 1000/- or more during this tenure. In case the purchase goes down from 1000/- in any month then the eligibility of that particular distributor will be revoked.

ACCIDENTAL DEATH BENEFIT      

Any distributor who does a purchase of RCM products worth Rs. 1000/- or more per month regularly and if he accidentally dies then his nominee gets * Rs. 2 lacs amount as accidental death benefit. This eligibility will be effective after completing 3 months of regular purchase. The purchase should be regular in order to continue this eligibility. If the purchase discontinues then the purchase of 1000/- or more per month can be started again and after completion of 3 months of regular purchase, the distributor again becomes eligible for the accidental death benefit.
In case of accidental death, the necessary documents should be produced.
* Effective From June 2011.











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