PMS SCHEME Procurement and Marketing Scheme

The Promotion and Marketing Support (PMS) scheme is a strategic initiative designed to assist Micro, Small, and Medium Enterprises (MSMEs) in enhancing their market presence and competitiveness. Launched by the Ministry of MSMEs, this scheme aims to provide comprehensive support, including financial assistance, to help MSMEs effectively promote their products and services.

By participating in the PMS scheme, MSMEs can access new markets, both domestically and internationally, through participation in trade fairs, exhibitions, and buyer-seller meets. The scheme also focuses on brand development, offering assistance in creating marketing materials such as brochures, catalogues, and websites.

What is PMS Scheme?

Additionally, the PMS scheme enhances the competitiveness of MSMEs by enabling them to adopt sophisticated marketing strategies and build a strong brand identity. By providing resources for advertising campaigns and promotional activities, the scheme ensures that MSMEs have the necessary tools to expand their market reach. Furthermore, the scheme includes knowledge and capacity-building components, such as training programs and workshops, to educate MSMEs about modern marketing techniques and international trade practices.

Overall, the PMS scheme plays a crucial role in empowering MSMEs to thrive in competitive markets, contributing to their long-term growth and sustainability, and ultimately fostering economic development and job creation.

What are the Objectives of the PMS Scheme?

The Promotion and Marketing Support (PMS) scheme is meticulously designed with several key objectives aimed at fostering the growth and development of Micro, Small, and Medium Enterprises (MSMEs). These objectives encompass a wide range of strategic initiatives to support MSMEs in both domestic and international markets.

Facilitation of Development and Promotion in Domestic and International Markets

One of the primary objectives of the PMS scheme is to facilitate the comprehensive development and promotion of MSMEs across both domestic and international markets. This involves creating opportunities for MSMEs to showcase their products and services on various platforms, thereby increasing their exposure and potential customer base. The scheme encourages MSMEs to explore and penetrate new markets, enhancing their competitiveness on a global scale. By doing so, it aims to create a more diverse and resilient MSME sector that can contribute significantly to the national economy.

Provision of Financial Support for Marketing Initiatives

The PMS scheme aims to provide substantial financial support for a wide range of marketing initiatives that can significantly enhance the visibility and marketability of MSME products. This financial assistance covers costs associated with advertising, promotional campaigns, and the creation of marketing collateral such as brochures, catalogues, and websites. The scheme recognizes that effective marketing is critical for the growth of MSMEs, and by alleviating some of the financial burdens, it enables these enterprises to invest more in innovative marketing strategies that can attract and retain customers.

Encouragement of Participation in Trade Fairs, Exhibitions, and Promotional Events

Encouraging MSMEs to actively participate in trade fairs, exhibitions, and other promotional events is another critical objective of the PMS scheme. Such participation not only helps MSMEs to display their products to a broader audience but also provides them with invaluable networking opportunities with potential buyers, partners, and industry experts. These events are crucial for MSMEs to understand market trends, customer preferences, and competitive dynamics. The scheme provides financial and logistical support to MSMEs to ensure their active and effective participation in these events, thereby helping them to secure orders and establish a strong market presence.

Assistance in Building Brand Value through Marketing Strategies and Tools

Building a strong brand value is essential for the sustained growth of MSMEs. The PMS scheme aims to assist MSMEs in developing and implementing robust marketing strategies and tools to build and enhance their brand identity. This includes support for branding activities such as logo design, packaging, digital marketing, and other promotional materials. The scheme also offers guidance and training on effective brand management practices. By helping MSMEs establish a recognizable and trusted brand, the scheme enhances their market credibility and customer loyalty, which are vital for long-term success.

Comprehensive Support for MSMEs

In addition to the aforementioned objectives, the PMS scheme also focuses on providing comprehensive support to MSMEs through capacity-building initiatives. This includes organizing workshops, training programs, and seminars to educate MSMEs about modern marketing techniques, digital marketing, and international trade practices. By equipping MSMEs with the necessary skills and knowledge, the scheme ensures that they are well-prepared to navigate the complexities of the global market.

Promotion and Marketing Support Scheme Guidelines

Overall, the Promotion and Marketing Support (PMS) scheme is designed to create a conducive environment for the growth and development of MSMEs. By addressing the key areas of market development, financial support, participation in trade events, and brand building, the scheme plays a pivotal role in empowering MSMEs to achieve greater market reach, enhanced competitiveness, and sustained business growth. Through these efforts, the scheme contributes to the broader goal of economic development and job creation, making MSMEs a vital component of the national economy.

The scheme also focuses on brand development, offering assistance in creating marketing materials such as brochures, catalogues, and websites. Additionally, the PMS scheme enhances the competitiveness of MSMEs by enabling them to adopt sophisticated marketing strategies and build a strong brand identity. By providing resources for advertising campaigns and promotional activities, the scheme ensures that MSMEs have the necessary tools to expand their market reach.

Furthermore, the scheme includes knowledge and capacity-building components, such as training programs and workshops, to educate MSMEs about modern marketing techniques and international trade practices. Overall, the PMS scheme plays a crucial role in empowering MSMEs to thrive in competitive markets, contributing to their long-term growth and sustainability, and ultimately fostering economic development and job creation.

What are the Eligibility Criteria for the PMS Scheme?

The Promotion and Marketing Support (PMS) scheme is structured to provide extensive support to a diverse range of entities within the MSME sector. The eligibility criteria are designed to ensure that a broad spectrum of participants can benefit from the scheme, thereby promoting inclusivity and comprehensive development across the sector. Below are the detailed eligibility criteria for the PMS scheme:

MSMEs Registered with Relevant Statutory Authorities

To be eligible for the PMS scheme, MSMEs must be duly registered with the relevant statutory authorities. This includes registration with bodies such as the Ministry of Micro, Small and Medium Enterprises, the Directorate of Industries, or other recognized authorities. The requirement for official registration ensures that the enterprises are legitimate and adhere to the regulatory standards set by the government. This also helps in maintaining a database of eligible MSMEs, facilitating better monitoring and evaluation of the scheme’s impact.

MSMEs Engaged in Manufacturing, Processing, or Providing Services

The scheme is open to MSMEs that are actively engaged in manufacturing, processing, or providing services. This broad criterion encompasses a wide range of business activities, ensuring that various types of enterprises can participate and benefit from the scheme. Whether an MSME is involved in producing goods, processing raw materials, or offering specialized services, it can avail of the support provided under the PMS scheme. This inclusivity is crucial for addressing the diverse needs of the MSME sector and promoting balanced growth across different industries.

Industry Associations and Government Organizations

In addition to individual MSMEs, the PMS scheme is also open to industry associations and government organizations that play a significant role in promoting MSME trade activities. Industry associations, which represent the interests of multiple MSMEs within a particular sector, can apply for support to organize trade fairs, exhibitions, and other promotional events. Similarly, government organizations that work towards the development and promotion of MSMEs can also participate in the scheme. By involving these entities, the scheme leverages their networks and expertise to create larger platforms for MSME promotion and market access.

Other Bodies Promoting MSME Trade Activities

The scheme extends its eligibility to other bodies that are actively involved in promoting MSME trade activities. This includes non-governmental organizations (NGOs), chambers of commerce, export promotion councils, and other entities that contribute to the development and marketing efforts of MSMEs. By including a wide range of organizations, the scheme ensures that all stakeholders working towards the growth of the MSME sector can collaborate and benefit from the available support. This collaborative approach helps in maximizing the outreach and effectiveness of the promotional activities.

Detailed Documentation and Compliance Requirements For PMS Scheme

Eligible entities must provide comprehensive documentation to substantiate their eligibility. This includes proof of registration, detailed descriptions of their business activities, and any relevant certifications or licenses. Additionally, they must comply with all the guidelines and requirements specified by the PMS scheme, including financial and performance reporting. Ensuring strict adherence to these requirements helps maintain transparency and accountability in the utilization of the scheme’s resources.

Capacity Building and Knowledge Enhancement

Apart from financial support, the PMS scheme also emphasizes the importance of capacity building and knowledge enhancement for eligible entities. This includes providing training programs, workshops, and seminars on modern marketing techniques, digital marketing, export procedures, and international trade practices. By equipping MSMEs and supporting organizations with the necessary skills and knowledge, the scheme aims to enhance their competitiveness and readiness to explore new markets.

In summary, the eligibility criteria of the PMS scheme are designed to be inclusive and comprehensive, covering a wide range of participants within the MSME sector. By ensuring that registered MSMEs, industry associations, government organizations, and other promoting bodies can access the scheme’s benefits, the PMS scheme fosters a collaborative environment for the growth and development of MSMEs. This inclusive approach helps in addressing the diverse needs of the sector and contributes to its overall competitiveness and sustainability.

Components of the PMS Scheme

The Promotion and Marketing Support (PMS) scheme encompasses several critical components designed to enhance the market presence and competitiveness of Micro, Small, and Medium Enterprises (MSMEs). These components provide targeted financial assistance and support for various marketing and promotional activities, enabling MSMEs to expand their market reach and build stronger brand identities. Here is an in-depth look at the key components of the PMS scheme:

1. Participation in Trade Fairs and Exhibitions

One of the primary components of the PMS scheme is to provide financial assistance to MSMEs for participating in both domestic and international trade fairs, exhibitions, and buyer-seller meets. This participation is crucial for MSMEs as it offers them a platform to showcase their products and services to a broader audience, including potential international buyers and partners.

The financial support covers various costs associated with these events, such as booth rental, transportation of goods, and promotional materials. By facilitating MSME participation in such events, the scheme helps them gain valuable exposure, generate leads, and secure new business opportunities.

2. Marketing Development Assistance

Under the Marketing Development Assistance (MDA) component, the scheme provides support for a range of marketing and promotional activities aimed at enhancing the marketability of MSME products and services. This includes assistance with advertising campaigns, catalogue production, and conducting market research.

Advertising campaigns help MSMEs reach a larger audience and create awareness about their offerings. Catalogue production allows them to present their products professionally, which can be particularly useful during trade fairs and buyer-seller meets. Market research helps MSMEs understand market trends, customer preferences, and competitive landscapes, enabling them to make informed marketing decisions and tailor their strategies accordingly.

3. Brand Building Initiatives

The PMS scheme also focuses on brand-building initiatives, recognizing the importance of a strong brand identity in achieving market success. This component assists in developing brand identity elements such as logos, taglines, and promotional materials like brochures, banners, and digital content. A well-defined brand identity helps MSMEs differentiate themselves from competitors and build a recognizable presence in the market.

The scheme also supports activities that enhance the overall market presence of MSMEs, such as participating in branding workshops, hiring brand consultants, and leveraging digital marketing tools. By investing in brand building, MSMEs can create lasting impressions on their target audience and foster customer loyalty.

Benefits of the PMS Scheme

The PMS scheme offers numerous benefits that significantly contribute to the growth and development of MSMEs. These benefits are designed to address various challenges faced by MSMEs in marketing and promotion, ultimately helping them achieve greater market success. Here is an expanded view of the benefits provided by the PMS scheme:

Financial Support

One of the most immediate benefits of the PMS scheme is the financial support it provides to MSMEs. The scheme offers grants and subsidies to cover the costs associated with participating in trade fairs, exhibitions, and other marketing activities. This financial assistance alleviates the burden on MSMEs, allowing them to allocate resources towards other critical business operations. By reducing the financial barriers to market participation, the scheme enables more MSMEs to take advantage of marketing opportunities that they might otherwise not afford.

Market Expansion

The PMS scheme facilitates market expansion for MSMEs by providing them with opportunities to explore new markets and establish business relationships with international buyers and partners. Participation in trade fairs and exhibitions exposes MSMEs to a global audience, opening doors to export opportunities and new revenue streams. The exposure to international markets also helps MSMEs understand global demand, adapt their products to meet international standards and gain a competitive edge in the global marketplace. As a result, MSMEs can diversify their customer base and reduce their dependence on local markets.

Increased Visibility

Increased visibility and brand recognition are significant benefits of the PMS scheme. By participating in prominent trade events and marketing initiatives, MSMEs can enhance their visibility among potential customers, partners, and industry stakeholders. The support for advertising and promotional activities helps MSMEs reach a wider audience and create a strong market presence. Enhanced visibility not only leads to increased sales but also strengthens the MSMEs’ market position and reputation. A well-recognized brand can attract more business opportunities and foster trust and loyalty among customers.

Capacity Building

The PMS scheme also emphasizes capacity building by providing MSMEs with access to resources, knowledge, and expertise that can improve their marketing strategies and business practices. This includes training programs, workshops, and seminars on various aspects of marketing, branding, and international trade. By equipping MSMEs with the necessary skills and knowledge, the scheme helps them develop effective marketing strategies, optimize their promotional efforts, and make informed business decisions. Capacity-building initiatives also foster innovation and continuous improvement within MSMEs, contributing to their long-term growth and sustainability.

Application Process of the PMS Scheme

The application process for the Promotion and Marketing Support (PMS) scheme is designed to be comprehensive and accessible, ensuring that eligible Micro, Small, and Medium Enterprises (MSMEs) and other relevant organizations can efficiently apply for the financial assistance and support provided by the scheme. The process involves several critical steps, from proposal submission to the uploading of necessary documents, each aimed at ensuring that the applicants meet the eligibility criteria and that their marketing initiatives align with the objectives of the PMS scheme. Below is an expanded overview of the application process:

Submission of Proposals

Eligible MSMEs and organizations must begin the application process by submitting their proposals through the designated PMS scheme portal. This portal is typically managed by the relevant government authority or ministry responsible for MSME development and support. The proposal should be comprehensive and provide detailed information about the intended marketing activity. Key aspects to include in the proposal are:

• Description of Marketing Activity: Clearly outline the marketing activities that the MSME intends to undertake. This could include participation in trade fairs, exhibitions, advertising campaigns, market research, and brand-building initiatives.
• Objectives and Expected Benefits: Specify the objectives of the marketing activity and the expected benefits for the MSME. This could include anticipated increases in market reach, brand recognition, and sales.
• Financial Assistance Required: Detail the financial support required for the marketing activity, including a breakdown of costs such as booth rentals, travel expenses, advertising costs, and production of promotional materials.

 Detailed Information Provision

The proposal should include detailed information about the MSME or organization applying for the scheme. This information helps in assessing the eligibility and suitability of the applicant for the PMS scheme. Important details to provide include:

• Business Registration Details: Provide the official name of the business, registration number, and the statutory authority with which the business is registered.
• Proof of MSME Status: Include documentation that verifies the MSME status of the applicant, such as MSME registration certificates or Udyog Aadhaar Memorandum.
• Financial Statements: Submit the latest financial statements, including balance sheets, income statements, and cash flow statements, to demonstrate the financial health and stability of the business.
• Export Licenses (if applicable): If the MSME is involved in export activities, include copies of relevant export licenses and documentation that supports their export credentials.

Uploading Necessary Documents

Applicants must upload all necessary documents as part of their proposal submission. These documents are critical for verifying the eligibility and authenticity of the applicant and ensuring that they meet the criteria set forth by the PMS scheme. Essential documents to upload include:

• Business Registration Certificates: Copies of certificates that confirm the registration of the business with the relevant statutory authorities.
• Proof of MSME Status: Documents such as MSME registration certificates, Udyog Aadhaar Memorandum, or other official documents that verify the MSME status of the applicant.
• Financial Statements: Recent financial statements, including balance sheets, income statements, and cash flow statements, provide a clear picture of the financial condition of the business.
• Export Licenses (if applicable): Copies of export licenses and other relevant documentation for MSMEs involved in export activities.
• Event Invitations and Agreements: If the proposal includes participation in trade fairs or exhibitions, include invitations from event organizers, booth rental agreements, and other relevant documents.
• Marketing Materials: Samples of existing marketing materials, such as brochures, catalogues, and digital content, to support the proposal and demonstrate the applicant’s current marketing efforts.

Review and Evaluation

Once the proposal and supporting documents are submitted, the application undergoes a thorough review and evaluation process conducted by a designated committee or authority. The review process involves several key steps:

• Initial Screening: The initial screening verifies the eligibility of the applicant based on the provided documentation and ensures that all necessary information has been submitted.
• Proposal Evaluation: The detailed proposal is evaluated for its relevance, feasibility, and potential impact. The evaluation criteria include the alignment of the proposed marketing activities with the objectives of the PMS scheme, the expected outcomes, and the overall benefit to the MSME.
• Final Approval: Based on the evaluation, the approval committee makes the final decision on the grant or subsidy. Approved applicants are notified of the decision, along with details of the financial support and any additional requirements or conditions.

Post-Approval Process

After receiving approval, the MSME must adhere to specific guidelines and conditions set forth by the PMS scheme. This may include periodic reporting on the progress of the marketing activities, submission of proof of participation in events, and documentation of expenses incurred. The financial assistance is typically disbursed in two stages:

• Pre-Event Disbursement: A portion of the grant may be disbursed in advance to cover initial expenses such as booth rentals and travel costs.
• Post-Event Reimbursement: The remaining grant amount is disbursed as a reimbursement after the completion of the marketing activity, based on the submission of invoices, receipts, and event reports.

By following this detailed application process, MSMEs can access the financial support and resources provided by the PMS scheme, enabling them to enhance their marketing efforts, expand their market presence, and achieve greater business success.

Approval Process of the PMS Scheme

The approval process for the Promotion and Marketing Support (PMS) scheme is structured to ensure that financial assistance is awarded to deserving Micro, Small, and Medium Enterprises (MSMEs) based on a thorough evaluation of their applications. This process is crucial for maintaining the integrity of the scheme and ensuring that support reaches those who can effectively utilize it to enhance their market presence. The approval process consists of several key steps:

Initial Screening

The initial screening is a foundational step in the approval process, aimed at verifying the eligibility of the applicants. This step involves a meticulous review of the submitted documentation to confirm that the applicants meet the criteria set by the PMS scheme. Key aspects of this screening phase include:

• Verification of Documentation: The authorities responsible for the PMS scheme examine the documents uploaded by the applicants, including business registration certificates, proof of MSME status, and financial statements. This ensures that the applicants are registered entities engaged in legitimate business activities.
• Assessment of Eligibility Criteria: The eligibility criteria include being a registered MSME engaged in manufacturing, processing, or service provision. The screening checks whether the applicant fulfils these criteria, filtering out any ineligible entities from proceeding to the next steps.
• Preliminary Decision: Based on the findings of the initial screening, a preliminary decision is made regarding the applicant’s eligibility. Those who pass this screening move on to the proposal evaluation stage, while those who do not are informed of their ineligibility and the reasons for it.

Proposal Evaluation

Once the initial screening is complete, the detailed proposals submitted by the eligible applicants undergo a thorough evaluation process. This phase is critical for determining which MSMEs will receive financial support. The evaluation process includes the following elements:

• Relevance and Alignment: Proposals are assessed for their relevance to the objectives of the PMS scheme. This involves checking whether the proposed marketing activities align with the goals of enhancing market presence, promoting products, and facilitating participation in trade events.
• Feasibility Assessment: The evaluation committee examines the feasibility of the proposed activities, considering factors such as the timeline, budget, and resources required. This helps ensure that the MSME has a realistic plan for executing the proposed marketing initiatives.
• Impact Analysis: Evaluators look for potential outcomes and benefits that the proposed activities could bring to the MSME. This includes assessing how participation in trade fairs, exhibitions, or promotional campaigns could lead to increased brand visibility, market reach, and ultimately, sales growth.
• Scoring and Ranking: In some cases, a scoring system may be employed to rank proposals based on specific criteria. This systematic approach allows for an objective comparison between different applicants and aids in making informed decisions.

Approval and Notification

After the evaluation phase, the approval committee or relevant authority makes the final decision regarding grant allocation. This stage encompasses several important actions:

• Final Decision-Making: The committee reviews the evaluations and makes decisions based on the merits of each proposal. Factors considered include the alignment with the PMS objectives, the feasibility and impact of the proposed activities, and the overall potential for market expansion.
• Approval Notifications: Once decisions are made, approved MSMEs receive official notifications detailing the outcome of their applications. These notifications typically include:
• Grant Amount: Information on the amount of financial support awarded to the MSME.
• Conditions and Requirements: Any specific conditions that the MSME must adhere to to receive the funds, such as reporting requirements or milestones that need to be achieved.
• Next Steps: Guidance on the next steps in the process, including instructions for claiming the grant and any additional documentation that may be required.
• Support and Guidance: In some instances, the approval committee may provide additional support or guidance to MSMEs, helping them understand how to maximize the benefits of the scheme and effectively implement their proposed marketing activities.

Grant Release Mechanism of the PMS Scheme

The grant release mechanism under the Promotion and Marketing Support (PMS) scheme is carefully structured to facilitate the timely and efficient disbursement of financial support to Micro, Small, and Medium Enterprises (MSMEs). This mechanism operates through two key phases: pre-event disbursement and post-event reimbursement.

Pre-event disbursement allows MSMEs to receive a portion of the grant in advance, which is crucial for covering initial expenses associated with their marketing activities, such as booth rental, travel costs, and promotional materials when participating in trade fairs and exhibitions. This advance funding helps MSMEs manage their cash flow effectively, ensuring they can make necessary preparations without financial strain. Following the completion of the marketing activity,

the post-event reimbursement phase comes into play, where the remaining portion of the grant is disbursed. To claim this reimbursement, MSMEs are required to submit documentation that serves as proof of participation, including invoices, receipts, and comprehensive event reports detailing their activities and outcomes. This post-event disbursement process not only guarantees that the funds are utilized for their intended purposes but also encourages accountability, ensuring that MSMEs can demonstrate the effective use of the support received. Through this structured grant release mechanism, the PMS scheme aims to provide essential financial assistance while promoting responsible and impactful marketing efforts among MSMEs.

Marketing Activities Covered Under the PMS Scheme

The Promotion and Marketing Support (PMS) scheme encompasses a diverse array of marketing activities designed to bolster the promotional endeavours of Micro, Small, and Medium Enterprises (MSMEs).

A key component of the scheme is financial assistance for trade fairs and exhibitions, enabling MSMEs to participate in both domestic and international events. This support covers essential costs, including booth rental, transportation of goods, promotional materials, and travel expenses, providing MSMEs with a platform to showcase their products to a broader audience.

 Additionally, the scheme offers advertising and promotion support, facilitating advertising campaigns across print, digital, and social media channels to enhance brand awareness. It also includes funding for the production of promotional materials, such as brochures, catalogues, and banners, which are vital for effective marketing.

Furthermore, the PMS scheme recognizes the importance of market research by assisting in conducting studies that yield valuable insights into market trends, customer preferences, and competitive landscapes. This research empowers MSMEs to make informed decisions and tailor their marketing strategies effectively.

The scheme also focuses on branding and identity development, offering support for creating brand identity elements like logos, taglines, and promotional materials. This aspect includes funding for branding workshops and consultations with brand experts, which are essential for establishing a recognizable market presence. Lastly, in response to the increasing significance of digital platforms, the PMS scheme supports digital marketing activities, covering website development, search engine optimization (SEO), and social media marketing. This comprehensive support helps MSMEs harness online channels to reach a global audience, thereby enhancing their visibility and competitiveness in the marketplace.

Frequently Asked Questions on PMS Scheme India