Tantangan

As the Tequila & Mezcal portfolio expanded, distributor focus became increasingly divided across multiple competing brands. Manual incentive tracking, delayed payouts, and inconsistent performance recognition reduced the effectiveness of traditional trade schemes.

The manufacturer lacked a centralized platform to motivate distributors, measure execution, and reinforce accountability across regions.

Key challenges included:

• Inconsistent case movement across territories: Distributors prioritized higher-margin or better-incentivized brands, slowing volume growth.

• Slow speed-to-shelf for new launches: New expressions and limited releases faced delayed placements without early-mover incentives.

• Limited account expansion: Distributors lacked motivation to open new on-premise and off-premise accounts proactively.

• Weak linkage between QBR goals and rewards: Quarterly performance discussions lacked tangible, outcome-based incentives.

• Low training participation: Sales teams often skipped product education, impacting selling confidence and brand storytelling.

• Seasonal execution gaps: Peak sales periods were under-leveraged due to absence of short-term SPIFFs and urgency-driven incentives.

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Personas involved

• Distributors & Wholesalers: Earn incentives for volume growth, new placements, product launches, training completion, and seasonal performance.

• Sales & Channel Management Teams: Design incentive structures, manage distributor performance, and drive execution across territories.

• Trade Marketing Teams: Launch SPIFFs, seasonal campaigns, and new product incentives aligned with brand priorities.

• Finance & Incentives Teams: Oversee budgets, approvals, payouts, compliance, and audit-ready incentive workflows.

• Training & Enablement Teams: Drive completion of product education, certifications, and portfolio training programs.

• Program Admin / Super Admin: Configure rules, manage tiers, monitor performance dashboards, and govern incentive programs at scale.

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The solution

The Tequila & Mezcal manufacturer needed a scalable, transparent, and performance-driven channel incentive platform to motivate distributors and wholesalers while aligning them with business goals.

Xoxoday Compass delivered a centralized incentive management solution that automated program design, tracking, and payouts—while providing distributors with real-time visibility into performance and rewards.

This shift replaced fragmented trade schemes with a data-driven, outcome-focused channel performance ecosystem.

1. Volume-based incentives for accelerated case movement: Xoxoday Compass enabled the brand to launch tiered, milestone-based incentives that rewarded distributors as they crossed volume thresholds—creating urgency and encouraging prioritization of Tequila & Mezcal portfolios over competing brands.

2. New product launch bonuses for faster market rollout: Time-bound bonuses and early-mover rewards were introduced for new expressions and limited-edition launches, incentivizing distributors to rapidly place, promote, and activate new SKUs across their networks.

3. Account expansion rewards for deeper market penetration: Xoxoday Compass automated per-placement incentives for opening new on-premise and off-premise accounts—helping the brand expand distribution footprint across bars, premium retail outlets, and hospitality venues.

4. QBR-linked performance bonuses: Quarterly Business Review (QBR) goals were directly tied to incentive outcomes, rewarding distributors who met or exceeded agreed targets—strengthening accountability and long-term partnership commitment.

5. Training completion rewards for sales enablement: Distributors and sales reps were rewarded for completing product training, certifications, and portfolio education via LMS integrations—ensuring stronger brand knowledge and more effective selling.

6. Seasonal SPIFFs for peak demand execution: Short-term SPIFF programs were launched during festivals, holidays, and high-demand periods, driving focused execution and maximizing seasonal sales opportunities.

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Impact

• 2.1× increase in distributor-led volume growth, driven by tiered volume incentives.
• 37% faster speed-to-shelf for new product launches, enabled by early-mover bonuses.
• 42% growth in new account placements, expanding market penetration across territories.
• 29% improvement in QBR goal attainment, supported by outcome-linked bonuses.
• 3× increase in training completion rates, strengthening distributor selling effectiveness.
• INR 64 crore in automated distributor incentives processed annually, improving transparency and trust.
• Significant uplift in seasonal sales performance, powered by short-term SPIFF campaigns.

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Conclusion

By implementing Xoxoday Compass, the Tequila & Mezcal manufacturer transformed how it engages, motivates, and rewards its distributor and wholesaler network across India.

From volume-based incentives and launch bonuses to training rewards and QBR-linked performance payouts, Xoxoday Compass created a high-performance channel ecosystem rooted in transparency, accountability, and mutual growth.

With automated incentives, real-time visibility, and seamless integrations, the brand accelerated distribution excellence, strengthened partner loyalty, and unlocked sustainable revenue growth in a highly competitive spirits market.