Ally Sales Program

LG needed a way to offer top retail agents valuable marketing incentives designed to generate awareness and increase device priority sell-in and sell-through during key promotional periods. As part of a controlled ongoing pilot effort, ALPHA was asked to structure a program to ensure that trade incentive components could be modified to maintain profitability when extended to different handsets and channels.

ALPHA developed a two-pronged trade incentive program targeting LG’s four top Verizon indirect agents in the USA. The effort consisted of four separate promotional phases that focused on key device priorities for that timeframe. Since the program aimed to drive sell-in and sell-through of LG’s handsets, incentives consisted of two reward components to meet these objectives:

1.    Sell-in Incentive — Reward agents with a FREE Bluetooth headset for every two units purchased.

2.    Sell-through Incentive — Offer 1% of invoice back in advertising dollars for every 1,000 units purchased.

Throughout the four program periods, approximately 25,000 Bluetooth^® headsets were distributed with phone bundle orders, and just under $200K in earned funds were allocated and applied toward direct mail advertising.