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A STUDY ON THE TRAINING ASPECTS OF THE SALES PEOPLE IN THE RETAIL INDUSTRY
This dissertation report is being submitted as part of the requirements of the MBA Program of Bangalore University. The study has been undertaken by:
With the guidance and support of
Prof.Krishna K. Havaldar
Faculty Alliance Business Academy
Alliance Business Academy
19th cross, 7th main, N.S.Palya, BTM 2nd Stage, Bangalore – 560076 2003 – 2005
This is to certify that Mr.CHAITANYA.M of our institute has completed his dissertation in RETAIL INDUSTRY and carried out a study on THE TRAINING ASPECTS OF SALES PEOPLE IN RETAIL INDUSTRY, under my guidance.
Date: Place: Bangalore
Prof.Krishna K. Havaldar Faculty. Alliance Business Academy.
I CHAITANYA.M, studying in Alliance Business Academy, Bangalore do hereby declare that this Dissertation Report relating to RETAIL INDUSTRY and the topic STUDY ON THE TRAINING ASPECTS OF SALES PEOPLE IN THE RETAIL INDUSTRY has been prepared by me after doing a research in this industry, as part of the requirements of the MBA Program of Bangalore University (Batch of 2003 – 2005). My guide for the training has been Prof.Krishna K. Havaldar.
I further declare that this Dissertation Report has not been submitted earlier to any other University or Institute for the award of any Degree or Diploma.
Date: Place: Bangalore CHAITANYA.M Reg.No-03VWCM6018.
President. I wish to record my deep sense of gratitude to project my guide Prof. Director and Executive Vice President for providing me the opportunity to do my Dissertation. I would also like to acknowledge all those respondents who have lend their precious time without which this dissertation work would not have been successful. Krishnamurthy.Sudhir Angur.Krishna K.ACKNOWLEDGEMENT I wish to express my deep sense of gratitude to Prof. B V. which provided me with lot of practical experience of the industry. Alliance Business Academy and Dr. Havaldar for his kind support. advice and encouragement from the beginning of the project till the completion of the project report. 4 .
CONLUSION AND SUGGESTIONS ANNEXURE BIBLIOGRAPHY PAGE-NO 1 4 7 34 58 5 .CHAPTERS 1) 2) 3) 4) 5) INTRODUCTION DESIGN OF THE STUDY PROFILE OF THE RESPONDENTS ANALYSIS FINDING.
Serial No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Description Importance of training Assessment of training needs Number of sales people in Banglore Number of sales people in India Frequency of conducting the training programme Budget for training Aims and objectives of training Methods used for training Place of training Why train sales force The trainer Product or service Contents of the training Training aids used Instructional methods Effectiveness of the training Frequency of the training programme Suggestions by the sales force Training needs Experience of sales people Qualification of sales force Income of sales people Commission and incentives Table no 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Graph no 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Page no 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 6 .
Today Indians have become world class consumers who demand world class service. the retail industry has moved to an even higher level. The report gives a view of the industry and its activities. training. as part of my dessertation. the retail market is growing. Bangalore. However. There are only 14 companies that run department stores and only two with hypermarkets. which already had relatively good standards. not only in terms of numbers but also in terms of stature. development and technology (bearing in mind the necessity of keeping the human element in place because technology in itself. It is interesting to know that in a modern city like Mumbai. most of these had only one outlet. impersonal and not at all customer friendly) will ensure that brand marketers are able to keep pace in a dynamic world. This report gives a clear view of the retail sector. image and class. 7 .EXECUTIVE SUMMARY This report is the outcome of my learning during the research that I have done on the training needs of the sales people in the retail industry. is cold. India's retail sector appears backward not only by the standards of industrialized countries but also in comparison with several other emerging markets in Asia and elsewhere. While the number of businesses operating supermarkets is higher (385 in 2003). and the training facilities provided to the sales force of retail industry. The number of companies with supermarket chains was less than 10. Regular update of skills. Customers are constantly changing and their expectations keep rising.
8 . food retailers of all sizes. The retail business has become more organized and customer oriented. Almost all kinds of retail outlets were covered under this research like the retail outlets of big brands of sports wear. In retail industry which is in boom from past one decade there is a drastic change in the way the business is run. The study came out with the findings that there is a good improvement in fulfilling the training needs of sales force in retail industry in Banglore. There were different numbers of sales people working in different kinds of retail companies. clothing showrooms. The sampling method used was judgmental and convenience sampling. So the people in this industry are also changing with a more professional outlook with more knowledge and skills to impress the consumers and make good volume of sales at the end of the day. According to the requirements the sales people are to be trained and this study was conducted to access the effectiveness of the training being given to the sales force at present. All of them were provided with various training and this study was to identify those training details in this industry.The market survey was conducted to know what kind of training is currently provided by the retail companies. Some more improvements are needed which are specified in the interpretation and suggestions. Now there are lots of major players in this industry from small to big.
INTRODUCTION: 9 .
and brands of an item. 10 . The direct link between the customers and the company is the sales people who are expected to provide this courteous and efficient service to the customers. The above mentioned are the very basic and important duties of sales people and they require great skills and knowledge to perform well. they give information about various models. Sales people also handle returns or exchanges of items. colors. They help customers to find items in the store. Sales people are periodically given training to update and refine their skills for providing the best customers. The retail sales people demonstrate how items work and explain details of items to customers. the demands of customers are not just great products but also great shopping experience and to make this possible a retail outlet should have well trained sales people. Sometimes they give special information about very expensive or complex items. The retail industry in our country is at boom and getting organized day by day. And this high level performance can only be seen if the sales people are provided with training as and when required. Retail sales people compute the amount of the total sale and received cash.This research is basically done to find out the training needs of the sales people in the retail industry and how they are being fulfilled. they try to convince customers to buy those items. Retailers are increasingly stressing the importance of providing courteous and efficient service in order to remain competitive. This study is made to know how well the sales people of retail industry in Banglore are trained to meet the customer expectations and global standards. cheque or credit card payments.
they usually move to positions of greater responsibility and may be given their choice of departments. This type of positions often requires the most knowledge of the product and the highest talent for persuasion. 11 . This often means moving to areas with potentially higher earnings and commissions.A sales persons gain experience and seniority. particularly due to increasing domestic and international competition. And also to understand training aspects which keeps the sales force of retain industry fit and ready to face any kind of challenges. Sales people working in this industry play major role in handling the customers effectively. The highest earnings potential is usually found in big-ticket items. This study is done to evaluate the training system used by the retail industry in Banglore. So training is the most important aspect in recent trend which increases the potential of sales people to meet the organizational and personal objectives The retail industry in Banglore has changed its face and approach.
Research methodology: Sources of data: primary and secondary. From small outlets to big showrooms and departmental stores. To understand the training needs of the sales people in the retail industry in Banglore. Objectives: 1. Secondary data is collected from the internet. This study is to understand the training aspects which keep the sales force of retail industry fit and ready to face any kind of challenges. To suggest improvements to the existing training programmes conducted by retail industry.DESIGN OF THE STUDY: Problem statement: The retail industry in Banglore has changed its face and approach. journals and news paper. Sampling method: Non probabilistic sampling scheme by using convenience and judgment sampling technique. sales people should be having good skills and knowledge. Sales people working here play a major role by handling the customers effectively. particularly due to increasing domestic and international competition. Primary data is collected by using descriptive research method from retail outlets of all types. 13 . 3. 2. To evaluate the training system used by the retail industry in Banglore. Customers are of various types and to handle them and their queries. every retailer is giving their business a new look.
Sampling size: 70 Sampling unit: Retail outlets of all types. 14 . Method of contact: personal interviews/contacts were carried out for the retail outlets. Research Instrument: Structured questionnaire used to collect the primary data.
retail salespersons need special knowledge or skills.PROFELE OF THE RESPONDENTS: • Respondents were all types of retailers. Therefore. the meaning of manufacturers’ specifications. retail salespersons assist customers in finding what they are looking for and try to interest them in buying the merchandise. These retailers were into all kind businesses like FMCG. They describe a product’s features. or show various models and colors. 16 . salespersons who sell automobiles must be able to explain to customers the features of various models. the salesperson may check the stockroom. in which again the sales managers. for example. There were no geographical limitation (Banglore) while selection of the retail outlets. When a customer wants an item that is not on the sales floor. demonstrate its use. INDUSTRY PROFILE: Whether selling shoes. For example. place a special order. and the types of options and financing available. the outlet owners and the sales people were asked the questions. particularly those selling expensive and complex items. Consumers spend millions of dollars every day on merchandise and often form their impressions of a store by evaluating its sales force. For some sales jobs. computer equipment. retailers are increasingly stressing the importance of providing courteous and efficient service in order to remain competitive. All the respondents were individuals and no group responses were collected. durable goods and others. • • • • These retail outlets were from all over the Banglore city. or automobiles. or call another store to locate the item.
and exchange vouchers. Patience and courtesy are required. they may help stock shelves or racks. clothing and accessories stores. especially those who work in department and apparel stores. Salespersons are often held responsible for the contents of their registers. WORKING CONDITIONS: Most salespersons in retail trade work in clean. However. Salespersons may also handle returns and exchanges of merchandise. bag or package purchases. well-lighted stores. they often stand for long periods and may need supervisory approval to leave the sales floor. comfortable. coupons. In addition. Depending on the hours they work. EMPLOYEMENT: The sales people worked in stores ranging from small specialty shops employing a few workers. check. The largest employers of retail salespersons are department stores. and making deposits at the cash office. take inventory. some were self-employed representatives of direct sales companies and mail-order houses. receive cash. and repeated shortages are cause for dismissal in many organizations. arrange for mailing or delivery of purchases. In addition. This job can be rewarding for those who enjoy working with people. 17 .In addition to selling. wrap gifts. to giant department stores with hundreds of salespersons. and charge payments. furniture and home furnishing stores. mark price tags. separating charge slips. make out sales checks. especially when the work is repetitious and the customers demanding. most retail salespersons. and keep their work areas neat. retail salespersons may have to open or close cash registers. This may include counting the money. and motor vehicle dealers. and give change and receipts. and prepare displays.
For example. such as cars. or the proprietor. an experienced employee. Topics usually discussed are customer service. Among other desirable characteristics are an interest in sales work. instructs newly-hired sales personnel in making out sales checks and operating cash registers. retirees. security. and electronic equipment. The ability to speak more than one language may be helpful for employment in stores in communities where people from various cultures tend to live and shop. However. some employers may conduct a background check. Because providing the best service to customers is a high priority for many employers. and the ability to communicate clearly and effectively.This occupation offers many opportunities for part-time work and is especially appealing to students. and others looking to supplement their income. and how to work a cash register. salespersons employed by motor vehicle dealers may be required to participate in training programs designed to provide information on the technical details of standard and optional equipment available on new models. they may be given additional specialized training by manufacturers’ representatives. especially for a job selling high-priced items. Depending on the type of product they are selling. employees are often given periodic training to update and refine their skills. In large stores. furniture. work full time and have substantial experience. In most small stores. Before hiring a salesperson. those working in cosmetics receive instruction on the types of products available and for whom the cosmetics would be most beneficial. although a high school diploma or equivalent is increasingly preferred. Likewise. a neat appearance. Employers look for people who enjoy working with others and have the tact and patience to deal with difficult customers. the store’s policies and procedures. EDUCATION AND TRAINING: There usually are no formal education requirements for this type of work. most of those selling "big ticket" items. training programs are more formal and usually conducted over several days. 18 .
you are going to get it." the salesperson offers.1 megapixel digital camera you've been eyeing for months. You sigh with relief. and now it's not here! "Let me check with our other store. I'll put a hold on it right now. "Thank you. the 5. Employment is expected to increase about as fast as the average for all occupations through the year 2008 due to anticipated growth in retail sales created by a growing population." Thanks to that salesperson." you say. I'm sorry. They try to convince customers to buy those items. Your fingers twitch with excitement. such as the Christmas season. There it is in the display.JOB OUTLOOK: As in the past. the features. There will continue to be many opportunities for part-time workers. You walk up to the counter and the salesperson asks with a smile. you're shooting high resolution digital images within a few days. You can't wait to start shooting! "Oh. "What can I help you with today?" You reply that you want to buy the camera. "It's been a hot seller and we are out of stock. employment opportunities for retail salespersons are expected to continue to be good because of the many job openings created each year due to the need to replace the large number of workers who transfer to other occupations or leave the labor force." the salesperson says helpfully. checking the inventory on the computer." You've waited and finally saved up enough money. 19 . "A-ha! They have two left. and finally decided that today. I can arrange to have it shipped to your home. We sold the last one just a few minutes ago. Additional openings will be created by growth in employment of retail salespersons. If you still want it. and demand will be strong for temporary workers during peak selling periods. "You've been very helpful. It's got more bells and whistles than a circus clown! You've researched the brand. SALES PEOPLE IN RETAIL INDUSTRY Retail salespeople help customers find items in stores." the salesperson says.
• • • • • • • • • 20 . Answer questions. Bag or package items for customers. They give information about various models. At the end of their shift. Compute cost of total sale using cash register. Wrap items to be given as gifts. They count their banks to be sure they contain the correct amount of money. check. salespeople again count the drawers' contents and compare the totals with their sales data. Retail salespeople compute the amount of the total sale and receive cash.Retail salespeople demonstrate how items work and explain details of items to customers. return slips. salespeople deposit the day's sales at the store's cash office. Make special orders or check other stores for hard-to-find items. Describe items for sale and show different models or colors if necessary. check. Give cash change and receipts to customers. Then they give customers change and receipts. Arrange to mail or deliver special-order items. retail salespeople check the stockroom or make special orders from other stores. They are also given drawers with ôbanksö of money. Finally. They also total charge forms. and other non-cash items. Most salespeople are assigned to a register at the beginning of their shift. If they cannot find an item. and charge card payments. or credit card payments. Receive cash. They help customers to find items in the store. WORK ACTIVITIES The following list of occupational tasks is specific to this career. Sometimes they give special information about very expensive or complex items. Determine each customer's needs. and brands of an item. • Provide polite and efficient service to customers. Show how items are used. colors.
Mark price tags. Sort through charge slips. Make cash deposits at the store's cash office at the end of business. • • • • • • • Work with the public. May on occasion deal with angry or discourteous people. but the tasks are common to many occupations. Working Conditions In a typical work setting. Have a high level of contact with customers and coworkers. or subordinates. Establish and maintain relationships. display. Stock shelves and racks. Update and use job-related knowledge. Resolve conflicts and negotiate with others. exchange slips. peers. Balance cash drawers. Count and keep track of money in cash register. and coupons in cash register. • • • • • • • People in this career perform the following list of tasks. Convince others to buy goods. Communicate with supervisors. Get information needed to do the job. Stay up-to-date about sales and special offers and store policies. Watch for and prevent security risks and thefts.• • • Handle returns or exchanges of items. people in this career: Interpersonal Relationships • • • Deal with and provide service to customers. Organize. Keep work areas neat. and keep track of items for sale. 21 .
Salespeople are expected to meet sales quotas. Repeat the same motions. May work evenings. Often repeat the same tasks. It is important for people in this career to be able to: 22 .• Are moderately responsible for the health and safety of customers. control. or controls. • • May on occasion be placed in a conflict situation. Use hands to handle. Work Performance • Must be exact in their work and be sure all details are done. or lumber yard materials. Walk from place to place in the store. This usually applies to customers who test drive cars or other vehicles and equipment. • Hours/Travel • • • • May work part time or full time. However. Often work longer hours around the winter holidays. Have moderate responsibility for outcomes. tools. or feel objects. retail salespeople may work outdoors if they sell items such as cars. Physical Demands People in this career frequently: • • • • Stand for long periods of time. or holidays. plants. This is so that customers are charged the correct price for items. weekends. Physical Work Conditions • Often work indoors. May be discouraged from taking vacation time during peak shopping periods.
two legs. but still necessary. Hold the arm and hand in one position or hold the hand steady while moving the arm. or carry heavy objects. Recognize and understand the speech of another person. Use muscles to lift. Use hands and fingers to grasp. Understand spoken information. Be physically active for long periods without getting out of breath. such as arms and legs. Read and understand work-related materials. or one leg and one arm) while remaining in one place. or reach out with the body. twist. and brightness. Coordinate movement of several parts of the body. Express ideas clearly when speaking or writing. pull. Move two or more limbs together (for example. • • • • • • • Skills and Abilities People in this career need to: Communicate • • • • Listen to others and ask questions.• • • Speak clearly so listeners can understand. and/or legs. arms. push. two arms. It is not as important. stretch. See details of objects that are more than a few feet away. Use stomach and lower back muscles to support the body for long periods without getting tired. move. Bend. See differences between colors. or assemble objects. Reason and Problem Solve 23 . Sometimes these movements are made quickly and repeatedly. for people in this career to be able to: • • • See details of objects that are less than a few feet away. shades. while the body is moving.
and property. algebra. Education and Training: Knowledge of teaching and the methods involved in learning and instruction. Judge the costs and benefits of a possible action. and divide quickly and correctly. such as operate a new product. Mathematics: Knowledge of the rules and uses of numbers. subtract. Public Safety and Security: Knowledge of protecting people. and statistics. Follow guidelines to arrange objects or actions in a certain order. Work with People • • Recognize others' reactions and understand the possible causes. Areas of knowledge include arithmetic. Add.• • • • Analyze ideas and use logic to determine their strengths and weaknesses. and use of the English language. data. geometry. multiply. Use Math and Science • • Use math skills to solve problems. Notice when something is wrong or is likely to go wrong. Sales and Marketing: Knowledge of advertising and selling products and services. company. English Language: Knowledge of the meaning. spelling. Knowledge People in this career need knowledge in the following areas: • Customer and Personal Service: Knowledge of providing special services to customers based on their needs. Administration and Management: Knowledge of managing the operations of a business. or group. • • • • • • 24 . Teach others how to do something.
Preparation To work as a retail salesperson. They like to work in a friendly. make decisions. give advice. Several fields of study provide a good background for this occupation. They may prefer doing a variety of tasks. • Consider relationships important. They want employment that fits their individual work style. you must: complete on-the-job training. • Have enterprising interests. noncompetitive environment. They like jobs offering steady employment and good pay. They like work activities that assist others and promote learning and personal development. They like to do things for other people. or being busy all the time.Interests People in this career are people who tend to: • Consider support from their employer important. help. working alone. and be self-motivated. They like to communicate with others: to teach. They like to be treated fairly and have supervisors who will back them up. They prefer jobs where they are not pressured to do things that go against their sense of right and wrong. and take risks for profit. a college degree can be good preparation for selling high priced or technical products. They like work activities that involve starting up and carrying out projects. They like to lead and persuade others. • Consider good working conditions important. have excellent interpersonal skills. or otherwise be of service to others. especially in business. They prefer jobs where they are trained well. 25 . No formal education is required beyond high school. such as cars or computers. However. • Have social interests.
Some retail salespeople receive special training from manufacturers. or computers may require previous experience. building materials.Many employers require salespeople to have a college degree if their jobs are part of a management-training program. Some jobs. Belding Skills Development has earned a reputation for results-driven retail training. This training is usually limited to expensive or complex items. position. training happens one-on-one with a manager or owner. and computers if you are interested in a retail management On-the-job-Training Retail salespeople learn their skills mainly through on-the-job training. In these programs you learn about customer service. In smaller stores. security risks. You may also need special training if you sell very specific types of items. such as computers or cars. fabrics. Over the past twelve years. Belding has designed and delivered world-class retail Customer Service training programs and retail Selling Skills training programs for some of today's most successful retailers! The organized retail sector is expected to grow at 6% by 2010 and touch a retail 26 . Be sure to take courses in business management. such as plants. such as selling cars. You also learn how to operate cash registers and price-scanning machines. marketing. and store policies. Work-Experience Many jobs are entry level and do not require previous experience. or health care products. Larger stores have formal training programs.
Delhi. state governments. Chennai.business of $ 17 billion as against its current growth level of 3% which at present is estimated to be $ 6 billion. The growth of retail sector will lead to greater shift towards service economy in which need for real estate will be paramount. Kolkata. Releasing the Study on `Retail Scenario in India’. Sanghi has revealed that the organized sector retailing is all set to grow at much faster speed than unorganized sector and the higher growth speed will alone be responsible for its higher market share which has been projected for $17billion. Sanghi adding that the popular mode adopted for building shopping malls in these cities will be based on build. This system. Sanghi. said Mr. operate. Bangalore and Kanpur. Mr. investment opportunities that the retail sector will create in next 4-5 years will result into continued urbanization and increase the per capita income of Indian populace which will finally lead to greater consumerism. financial institutions and retail industry. according to the Study undertaken by The Associated Chambers of Commerce and Industry of India (ASSOCHAM). As per ASSOC Ham’s estimates. 27 . lease and sell basis. Cities and metropolies in which retailing will show booming prospects include Mumbai. Mahendra K. as per the findings of ASSOCHAM will lead to establishments of closer linkages and relationship between real estate developers. The Study has revealed that the retail sector will grow at GDP 7% by 2010 and enlarge its market share to $ 280 billion from its present estimated level of $ 200 billion. ASSOCHAM President. said Mr.
making supply chain management a challenging task for organized retailers.Urban Land Ceiling Act. The government should encourage People of Indian Origin (PIO) to invest in real estate and township building and foreign investment in real estate business and retailing should also be opened up. Presence of strong pro-tenancy laws will also make it difficult for retailers to grow as this problem is compounded by lack of clarity over titles to ownership.Franchising in retailing will emerge as a popular mode of retailing as their will be proliferation of availability of brands with both foreign and Indian companies acquiring a strong brand equity for their products in near future. states levy export duties where goods are moved for sale outside state border. A case in example is Gujarat. The retail boom currently being witnessed in India is likely to have a significant impact on the commercial real estate sector as the large metropolis will have sizable retail construction projects underway. Inter-state sales attracts Central Sales Tax while for some categories of products. while there are certain states like Delhi in which the stamp duty levied is within the range of 8%. Rent Control Act and Land Acquisition Act until amended will continue to distort property markets and cities. Simultaneously. Consumer behaviour in the organized retail industry has altered drastically over the last few years. Uttar Pradesh and few other states where the stamp duty is charged at 12.On the domestic taxation front. These include very high stamp duties on transfer of property which vary from state to state level. However. there will be few stumbling blocks that may restrict the growth of retail sector. certain states levy import duties namely entry tax on entry of goods into their territory. With the consumer 28 .5%. leading to exceptionally high property prices. a fact that retailers need to be sensitive to. sales tax rates differ across the various Indian states.
It is interesting to know that in a modern city like Mumbai. the bookstore chain inaugurated its largest store at Kemps Corner in Mumbai. Crossword Bookstores. the attractiveness of the loyalty programme. the product knowledge possessed by salespeople. Thus. the welcome that he or she receives. The retail market is growing. the familiarity of the layout. the toilets. who spreads bad word-of-mouth. is cold. and the focus on detail reflected world class standards and established Crossword as a strong brand. not only in terms of numbers but also in terms of stature. the packaging and the exit. Brand experience would include several aspects: the timings of the store. it becomes vital for retailers to pay attention to every little detail in order to be successful. The spaciousness. Recently. CEO. Customers are constantly changing and their expectations keep rising. the retail industry has moved to an even higher level. which already had relatively good standards. the variety and the range. the ability to browse with ease. development and technology (bearing in mind the necessity of keeping the human element in place because technology in itself. If the overall brand experience is positive and pleasant. the ease of navigation. image and class. Service is a key element in 29 .becoming increasingly discerning. there is a need that brand marketers constantly rise to the occasion and surpass customer expectation. and his team played gracious hosts to authors and readers. the spread. providing a good brand experience is vital. Regular update of skills. the consumer’s entry. the seating arrangement. training. the payment facilitation. consumers are likely to keep coming back to the store and the popularity of the store increases through wordofmouth. If not handled well. These are all crucial to the overall brand experience. Today Indians have become world class consumers who demand world class service. impersonal and not at all customer friendly) will ensure that brand marketers are able to keep pace in a dynamic world. it could result in a disgruntled consumer. Crossword. where S Rriram. Under no circumstances must brand marketers be allowed to get regressive.
International products and brands still attract the Indian consumer and even a small Marks & Spencer store has great appeal. Offering goods at a price lower than MRP seldom fails to attract consumers. there is an attempt to provide a wide choice so that the customer can pick and choose as per his or her taste.successful retailing and attention to detail is likely to result in customer satisfaction and greater sales. Promptness in identifying and satisfying every customer’s unique needs is essential. Retailers need to keep several things in mind in order to enhance customer experience and provide a positive brand experience. Finally. Spice-of-variety One of the reasons why consumers frequent a particular store is to look at various items under one roof. Shoppers’ Stop and Nirmal Lifestyles (which transformed a farflung suburb like Mulund into a retail hub) are both known to have top class training programmes for their executives. Discount and low cost are also factors that retailers need to take care of as an increasing number of customers are willing to go a great distance to get value for their purchases. A few are listed below: Understand customer needs quickly A retailing professional notices a customer’s need even before he verbalises it. International appeal is yet another detail that retailers need to attend to. 30 . it is a factor that serves to differentiate an outlet from other outlets. Malls largely owe their success to the novelty factor attached to them. which would enable the retailer to provide a good brand experience. Training is another important aspect of retail. novelty is a detail that retail just cannot miss. In fact. At Pantaloon. Range is another detail that the retail industry cannot ignore. This requires keen listening and an acute sense of observation.
we sell at a fixed price. The distribution system in India has to be streamlined to avoid wastage and to ensure low costs. said Shoppers' Stop's Raheja." he said. The group entered the Indian retail jewelry in 1988 with its first store in Mumbai. 31 ." For Biyani." In addition. the struggle will be to deal with supply chain inefficiencies. malls will remain a big city phenomenon only. "Our outlets are very modern." Intergold is a subsidiary of the Rosy Blue Group . "Indian parents have traditionally not been willing to send their children into the retailing business. it has 24 stores in 15 cities. "Supply chain is the biggest concern. We do not sell at the rate of gold or diamond on a particular day. branded clothing and not a generic super stores such as Wal-Mart. you have to deal with the high cost of rent. Now." said Jain." added Jain. the growth will mainly be in specialty stores such as stores for watches." Jain said the Indian malls have a great future as they provide entertainment for shoppers. According to him. "It takes years for a retail chain to break even. said Jain. it has been difficult to hire educated people and talent into retail stores. he added. according to him." said Jain. He suggested that funding is a major issue for an organized retail model. The malls are creating a shopping experience. He wants value for money. "Indian consumer is very price conscious."I am excited about the segment. "If you get into malls. It is looking to add 12 stores every year. unlike traditional "mom and pop" stores. "The success of Café Coffee Day and Barista has been because people did not have a place for leisure and hanging out outside their offices or classrooms." For the shopping malls.a diamond manufacturing company with offices in 15 countries.
many sales training programs consist of just listening to someone tell you what you should be doing and perhaps showing you how the instructor would do it. There is no "magic wand" that will implement what's learned in a sales and marketing training session and make it part of the company culture. The key to effective sales training is to provide more than just what-to-do training. but a journey. Issues such as inter-state movement of goods. development of the retail industry should be made a priority by the Indian government. A high performance sales culture is not an event. All journeys need road maps. Unfortunately. For training to be truly effective. Effective Sales Training Effective sales training is the foundation upon which long-term sales success is built. money and resources in sales force training.According to the Federation study. the next big challenge is its implementation. They are unconscious of how you run your business and what to do at their new jobs. It must also show you how to do it along with providing the opportunity to hone your skill by actually doing it. Levels of Sales Training Level-1 When your new employee is at Level 1 they are unconsciously incompetent. Lack of foreign investment is what is keeping the industry from growing. and infrastructure also need to be tackled to develop the retail industry in India. it needs to be a process and not an event. TRAINING THE SALES FORCE: Once a company has decided to invest time. according to the study. They are incompetent to the terms of the skills needed to be a successful 32 .
Let them develop the skills of welcoming your customers into the store and gaining the customer’s trust. yet they still do not have the skills needed to be a great salesperson and are still incompetent.step by step. Level 2: Sales Training At this level your trail training period should be over and. and watch them learn and grow. Start by teaching the basics of your business . they are now consciously incompetent. they still are unconscious to how things run within your company. it can actually be the most encouraging level of all because the new employee starts out with a lot of energy and excitement about his or her new position. Though they have learned a lot the first month. Even if they have some sales skills when they start. until they grow to the next level of learning.employee in your business. they will also be building their own confidence on the sales floor. But. The knowledge of the inventory will soon be learned as they work with it. 33 . Even though this level of training may start with the basics. As your new staff members build a rapport and new friendships with the customers. get to know them. you have decided that your new employees are the right people for their jobs. If you pick up on that energy you will find it to be a most pleasant experience for both of you. when new employees start out. This training process can be turned into an enjoyable and rewarding experience for you. Baby steps. Treat your new staff as if they were your special customers. it’s more important for them to make themselves and the customers feel comfortable. They are conscious of what is needed to be done on the job. Of course. product knowledge is a main factor in making the sale. What a thrill to bring in new members to your team. hopefully. Sell them on the excitement of your inventory.
Set up a meeting with them to discuss how they are doing and offer your support in their continued learning process. Whoever said. The excitement of the new job may have worn off somewhat and they are frustrated because they see other team players making all the sales. Discuss concerns and answer any questions they may have about their new positions. They are conscious of what needs to be done on the job and are very knowledgeable about how your business runs. At this time it is important to recognize their accomplishments and compliment them on how well they are doing.That is why this level can be the most frustrating of all. show your appreciation and reward them for their accomplishments. Why settle for less than the best team your money can buy? When your employee has reached level three they are consciously competent. “You can’t get good help”. Your sales people will increase their sales drastically when they add some genuine enthusiasm for the products and services they are selling. never took the time to train a staff to reach this level. Let them talk to you about how they feel about their new positions.you need to be a cheerleader. Keep supporting and encouraging them at this level . Delegate areas were they show strength. Find out how they feel about selling and what empowers them to work on improving their skills. easily and successfully. Empower your staff to make decisions 34 . Level 3: Sales Training Congratulations are in order when the newest members of your sales team reach this level. Continue the training process by informing them of changes in your policies and products. They are competent because they know your products well and can sell them on their own.
Most of them belong to independent enterprises in the form of small family businesses. Given the political clout of the small trading community. at present. there were about 35. franchising emerged as a popular mode of retailing. you’ll soon have the dream team you’ve always wanted. The other major retailing organisation format is multiples.000 franchised outlets. In 2002. there were about 1. Sales of franchises grew at a rapid pace of 14% per annum over the review period. Hence. In 2002. sales of chain stores grew at the fastest pace. since the 1990s.800 chain stores.Economic liberalisation. Organisational characteristics Given the traditional and underdeveloped state of the Indian retail sector. If you do. foreign retailers can only enter the retailing sector through franchising agreements. competition and foreign investment since the 1990s led to a proliferation of brands with both foreign and Indian companies acquiring a strong brand equity for their products. Among the various organisational formats. because of their enormous numbers. with sales growth during the review period averaging 24% per year. better known as "chain stores" in India. there were over 5.000 outlets run by cooperatives. Cooperatives have been present in India for several decades. However. which viewed the cooperative movement as an integral component of its erstwhile socialist policies. lead to the closure of many small trading businesses and result in considerable unemployment. In 2002. the organisational characteristics of retail enterprises are rudimentary. there has been a reduction in government support for cooperatives. spurred by the encouragement given by the Indian Government. Government policy There has been vigorous opposition to foreign direct investment (FDI) in retailing from small traders who fear that foreign retailing companies would take away their business. Hence. 35 .and accept their input toward your success at regular store meetings. the government has barred FDI in retailing since 1997.
traditional types of retailers. small single-outlet retailers also dominate sales of health and beauty products. Health and beauty products retailers With growth in incomes. This is because greater numbers of higher income Indians prefer to shop at supermarkets because of convenience. At present. supermarkets account for a minuscule proportion of food sales. who operate small single outlet businesses mainly using family labour. These are a mix of traditional and modern stores. higher standards of hygiene and the attractive ambience. However. Clothing and footwear retailers Numerous clothing and footwear shops are to be found in Indian cities and towns. and additional services to customers (such as home delivery). especially in shopping centres and markets. long opening hours. As in the case of other retailing sectors. they account for only a tiny share of sales of these products. This is not surprising considering the enormous size of the market for food. However. as Indians spend more on such products in future. This is because of the strong competitive strengths that traditional retailers possess. They basically stock a limited range of cheap and popular items. Indians have been spending more on health and beauty products. These include low operating costs and overheads. In contrast. supermarket sales expanded at a much higher rate than other retailers. in recent years. proximity to customers. modern clothing and footwear stores are spacious with sample 36 . Nevertheless. In comparison. However. There is also scope for entry of more such chains. Traditional outlets are small and cramped with little emphasis on alluring displays.Food-retailers There are a large variety of retailers operating in the food retailing sector. a couple of retail chains specialising in health & beauty products have sprung up. their business will undoubtedly expand substantially. dominate this sector. low margins.
which are much lower than prices of branded products. they attract a large number of customers. there are also a huge number of retailers selling clothing and footwear in makeshift stalls or on footpaths. A few retail chains also emerged particularly in the retailing of books and music products. Leisure and personal goods retailers Rising household incomes due to economic growth spurred consumer expenditure on leisure and personal goods in India. Durable-goods-retailers The entry of a large number of foreign consumer durable companies into the Indian market during the 1990s after the government liberalised its foreign investment and import policies transformed this sector dramatically. Because of their rockbottom prices. Home furniture and household goods retailers The home furniture and household goods retailing sector in India is dominated by small retailers. Another key feature of this sector is the popularity of franchising arrangements between established manufacturers and retailers. Competition among companies to sell their brands provided a strong impetus to the growth for retailers operating in this sector. Just as in the case of food retailing.products attractively displayed in windows. Despite the large size of this market. A much larger variety of consumer electronic items and household appliances became available to the Indian customer. there is considerable potential for the entry or expansion of specialised retail chains and it is likely that this will happen during the next few years. sometimes with mannequins. very few modern and large retailers have established specialised stores for these products. Alternative selling channels 37 . However. There are specialised retailers for each category of products in this sector.
modernisation of the Indian retail sector will be reflected in rapid growth in sales of supermarkets. one of the largest sectors in the global economy. The main reason for this was that direct selling companies could easily attract a huge number of "distributors". variety and a single-point source for purchases. especially in the urban areas. HP Speedmart) and fast-food chains (McDonalds. they will continue to account for only a small share of total retail sales in 2008. who constitute the key element for the success of any direct selling company. Retailing. The traditional food and grocery segment has seen the emergence of supermarkets/grocery chains (Food World.Sales through most alternative selling channels are tiny or non-existent. Nilgiris. This is slowly giving way to international formats of retailing. is going through a transition phase not only in India but the world over.3% per year (compared with 7. However. Many of these are unemployed Indian housewives who welcomed this opportunity to earn additional income for their households. 38 . which grew rapidly over the review period. Dominos). convenience stores (ConveniO. This is because of the growing preference of the affluent and upper middle classes for shopping at these types of retail stores. sales from these large format stores are predicted to expand at growth rates ranging from 24% to 49% per year during 2003-2008. given the conveniences they offer such as shopping ambience. For a long time. the corner grocery store was the only choice available to the consumer. Bombay Bazaar. The low start-up costs meant that they could easily start this business. department stores and hypermarkets.1% for consumer expenditure). Hence. Apna Bazaar). The forecast growth in real retail sales during 2003-2008 is 8. Inevitably. The only exception was direct selling. Hence. Forecast total retail sales Retail sales (in real terms) are predicted to rise more rapidly than consumer expenditure during 2003-2008. such rapid growth is from a small base.
o Mini supermarkets. Chennai.500-5.000sq. The industrial 39 . Spread of organized retailing: Organized retailing is spreading and making its presence felt in different parts of the country. The trend in grocery retailing. In a sense. The attractiveness of the other stores actually appeals to the existing affluent class as well as those who aspire for to be part of this class. Subhiksha and Viveks -to name a few.000 sq. ft. Music World. however. Health and Glow. o Discount/shopping list grocer In order to appeal to all classes of the society. in spite of being a rapidly growing metropolis offers reasonable real estate prices. this trend is already visible with the emergence of stores with an essentially `value for money' image. but a variety of factors acted in its favour. ft. However.The emergence of new sectors has been accompanied by changes in existing formats as well as the beginning of new formats: o Hypermarket: o Large supermarkets. both in the IT sector as well as outside it. typically 750-1. retail stores would have to identify with different lifestyles. What was considered a `traditional'. Vitan. Chennai has been witnessing a high industrial growth and increasing presence of the MNCs.000 sq. conservative' and `cost-conscious' market. one can assume that the retailing revolution is emerging along the lines of the economic evolution of society. typically 1. the Mecca of retailing is undoubtedly Chennai. The choice of Chennai as the `retail capital' has surprised many. ft. has been slightly different with a growth concentration in the South. typically 3. proved to be the home ground for most of the successful retail names .000-2. o Convenience stores.Food World. Hence. one of the most critical elements for the industry.
the prime mover A variety of factors seem to influence the growth in the retailing industry. the average spend was around Rs 4. In this context.boom has led to the emergence of new residential areas with aggregation of professionals as well as a rapid increase in the number of `double-income' households and growth of the nouveau riche/upper middle class with increased purchasing power. Besides increasing purchasing power. seems to be the most important driving factor behind the sustenance of the industry.200 per month. This has been combined with the increasing need for touch and feel shopping (especially for the large migrant population). 1. a conservative estimate of the grocery retailing potential at Chennai will be around Rs.850 and lower income households Rs. `Consumer Pull'. there is an increasing pressure on time with very little time being available for leisure. (This is computed from a sample of 100 customers having an average family size of four). the average spend in the case of a middleincome household was around Rs. All the factors have acted favourably in nurturing the industry. Consumer. consumers are seeking the convenience of 40 .250 per month. An analysis of the `monthly purchase basket of the consumers surveyed indicated that the average monthly household spend on food and grocery related items varied across income segments. In this scenario. As against this. With increase in double-income households and workingwomen. in the case of upper income households. Based on the distribution of the more than 15 lakh households in Chennai across income segments and the average spend. however. For instance. 300 crores. a variety of other factors also seem to fuel the retailing boom. 2. a brief survey among consumers across income segments to understand their spending pattern.
one-stop shopping, whereby they could have better utility of time. They are also seeking speed and efficiency in processing, as a result. Being more aware, consumers are on the lookout for more information, better quality and hygiene as well as increased customer service. These changes in consumer behaviour also augur well for the retailing industry. However, in India there are no uniform trends with respect to consumer buying behaviour. There are visible differences in the shopping pattern of consumers across income segments as shown in the table. Organized retailing has definitely made headway in the upper class. However, even in this segment, items such as milk, fruits, vegetables and a significant portion of `through-the-month' purchases seem to be done at traditional outlets. The middle-income class prefer shopping for processed food and personal care in supermarkets and fall back on traditional outlets for bulk shopping. Organized retail outlets seem to be associated with branded items/special purchases. Organized retailing does not seem to have made an impact on the lower class, except for `curiosity' shopping. The biggest question before organized retailers therefore, is whether this really means a huge untapped potential for the organized retailers and whether the conversion in mindset going to be easy.
IMPORTANCE TO TRAINING How much importance your company gives to training of sales persons? Very important Important Somewhat important Not at all important 17.14% 61.42% 18.57% 2.85% Table-1
70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% very important somewhat not at all important important important Series2
Graph-1 The following graph shows the details of importance given to the training of sales people by the company. Most of the companies have given it lot of importance to training. Few companies rate it as most important factor. So we can clearly see that there is lot of importance given to training in the retail industry in Bangalore. Inference: 78% of the respondents feel that training of sales people is very important.
ASSESSMENT OF THE TRAINING NEEDS
Inference: 98% of the companies assess the training needs based on the job description.How training needs of sales people are assessed? Based on Performance evaluation Changes in product or market Job description Any other 0% 1. Few companies do it when there is any change in the product or the market as well. Most of the companies do it on the basis of the job description of the sales people. NUMBER OF SALES PEOPLE WORKING IN BANGLORE What is the strength of your sales force in? 44 .42% 98.57% 0% Table-2 performance evaluation changes in products/markets job decription any other Graph-2 This graph gives the details of how the training needs of the sales people are assessed.
Most of them have around one to five sales people working for them.a) Bangalore 1-5 6-10 11-20 >20 93% 5% 2% 0% Table-3 1 to 5 6 to 10 11 to 20 >20 Graph-3 This graph depicts the number of sales people working for the retail outlets in Banglore. Only few have more than five sales people. NUMBER OF SALES PEOPLE ALL OVER THE COUNTRY b) All India 45 . Inference: 93% of the company’s sales force in Banglore ranges from 1-5 .
86% 46 . It is clearly shown that all the companies have more than twenty sales people employed in the whole country as a whole.72% 2.1-5 6-10 11-20 >20 0% 0% 0% 100% Table-4 1 to 5 6 to 10 11 to 20 >20 Graph-4 This graph shows the number of sales people employed by the retail companies in the country. FREQUENCY OF CONDUCTING THE TRAINING PROGRAMME How often the training programmes are conducted for the sales people? Once a year Two or more times a year As and when needed 79.70% 14.
00% 50.00% 60.00% 10.00% once a year two or more times a year as and when needed any other Series2 Graph-5 The following graph shows how often the sales people of the retail industry are provided with training.00% 80.70% Table-5 90. And the rest of the retail sales people are given training as and when required.00% 70.00% 30.Any other 2. Most of the companies or the outlets provide them training once in a year. BUDGET FOR TRAINING Do you have a yearly budget for training programmes? Yes No 36. Inference: 79% of the companies conduct training programmes for their sales force once in a year.00% 0.00% 20.00% 40.63% 47 .36% 63.
84% Table-7 48 . The graph shows that most of the companies does not have any budget allocated for training purpose as such.64% Increase sales performance 54.00% yes no Graph-6 This graph shows weather there is any fixed budget for the training programmes for the sales people in the retail industry.00% Series2 30.27% Any other 0.Table-6 70.23% Motivating sales people 26.00% 60. Inference: 63% of the retail companies say that they don’t have any fixed budget for their training programmes.00% 20.00% 40. AIMS AND OBJECTIVES OF TRAINING What are the aims or objectives behind training your sales staff? Increase current skills and knowledge 18.00% 50. But some companies do have a budget for training but the managers of the retail outlets are not provided with the clear numbers of it.00% 10.00% 0.
00% increase sales performance increase current skills and knowledge motivating sales people any other Series2 Graph-7 This graph shows us the aims and objectives behind training the sales force in the retail industry.00% 20. Inference: according to 54% of the companies main objectives of training programmes is to increase the sales performance.00% 30.00% 10. METHODS USED FOR TRAINING What methods do you normally use for training programmes for sales persons? Lectures Audio visions Product demonstration Role playing On the job training Business games Case discussions 25% 0% 0% 0% 75% 0% 0% 49 . 26% of the companies do it for motivating sales people also.00% 50.00% 0. Most of the retail sales people are trained to enhance their sales performance.00% 40.60. Rest of them are trained for improving upon the current skills and knowledge or for motivating them to perform better.
Any other 0% Table-8 80% 70% 60% 50% 40% 30% 20% 10% 0% le ct pr ur a od ud es uc io -v td e m isu o n a ls st ra tio ro n le on p th l ay e in jo g b bu t sin rain in es g ca s ga se m di es sc us s io ns an y ot he r Series2 Graph-8 This graph shows us the methods used in training the sales people in the retail industry. Most of the retail sales people are trained by giving on the job training and by giving lectures to them. Inference: most of the companies (75%) give on the job training to the sales people PLACE OF TRAINING Where does the training normally take place? Company’s premises Hotels Any other 97.42% 1.14% 1. So the best way to train the sales people in this industry is by giving them on the job training.42% Table-9 50 .
44% 94. Only few of the companies take them to hotels or some other place. Inference: 97% of the training programmes takes place at companies premises. WHY TRAIN SALES FORCE What drives you for training your sales force? Customer satisfaction survey Sales performance Competitors analysis Management feedback Any other 1. So its most feasible to train the sales people of retail industry in the outlets itself so that they get practical knowledge and experience at the time of learning itself.company's premises hotels any other Graph-9 Here in this graph we can see that most of the times the sales people of retail industry are trained in the company premises only.20% 0% 4.34% 0% Table-10 51 .
76% 0% Table-11 52 . So the training is basically given to enhance the sales performance of the sales people. The basic reason that drives the company to train the sales force.100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% customer satisfaction survey sales performance competitor's analysis management feed back any other Series2 Graph-10 This graph shows the reason behind training the sales force. Most of the companies feel that it’s the sales performance that drives the company to train their sales force and some times because of the feedback given by the management. Inference: 94% of the respondents feel that it’s the sales performance which drives them for training their sales force. THE TRAINER Who train your salesperson? Faculty within the company Faculty from outside Combination of a and b Any other 88.23% 0% 11.
100.00% 0. Most of the retail organizations have their own faculty from the company itself.00% 90.00% b co m pa ny ou ts an d ot he r id e Series2 th e fro m w fa cu l fa cu l co m ty This graph tells about who trains the sales people mostly.00% 20.00% 70.17% 0% 0% Table-12 bi na t io n ith in ty Graph-11 of a an y 53 .00% 30.00% 10. So by this graph we can see that in retail industry the sales people are mostly trained by the faculty within the company.00% 50. PRODUCT OR SERVICE What type of product or services you sell? FMCG or non durable products Durable products Industrial products Any other 18.82% 81.00% 60.00% 40. Inference: 88% of the retail companies have the faculty from the company itself.00% 80. Some of the retail companies use both faculty from the company and from outside some times.
53% 0% 0% 0% Table-13 54 .00% 50.90. Most of them are into durable products and few of the companies are into FMCG products.00% FMCG or non durable durable product industrial any other product Series2 Graph-12 This graph shows the details of the type of product or service provided by the company.00% 60.00% 80.00% 0. CONTENTS OF THE TRAINING What are the contents of the training programmes for new and experienced sales person? Product knowledge Selling techniques Market knowledge Negotiating skills Sales related marketing policies Competitors knowledge Any other 32.00% 20.22% 30.00% 10. Inference: 81% of the products or service provided by the retail organisations are durables.00% 40.80% 28.43% 8.00% 70.00% 30.
63% 48.78% 24.00% 5. Some of the companies also provide them with the negotiating skills. Inference: product knowledge is given the highest priority in the training programme.39% Table-14 55 . TRAINING AIDS USED What type of training aids are used in your training programmes? OH projector LCD projector Black or White board None 12.00% 25. They are mostly provided with product and market knowledge and selling techniques.00% 0.00% 30.00% competitor knowledge product knowledge marketting knowledge negotiating skills selling techniques any other sales related Series2 Graph-13 The following graph gives us the details of what kind of content is provided to the sales force in the training.00% 10.00% 20.35.00% 15.19% 14.
14% 0% 9.85% Table-15 56 . few use OH projectors and LCD projectors also.00% 50.00% 20.00% OH projector LCD projector black or white board none Series2 Graph-14 This graph gives the details about the training aids used for training the sales force. And lot of companies does not use any of these aids during training the sales force.00% 0.00% 40. INSTRUCTIONAL MATERIAL What kind of instructional materials and training aids are provided? Manuals or product leaflets Cases None 90.00% 10.60. Most of the companies provide training with the help of black and white boards.00% 30. Inference: 48% of the companies use black and white boards as the training aid.
QUESTIONNAIRE FOR THE SALES FORCE: EFFECTIVENESS OF THE TRAINING Has the training provided to you helped you in doing your job well? Very much helpful Helpful Somewhat helpful Not helpful Not at all helpful 20.58% 72. Inference: 90% of the companies use manuals or product leaflets as instructional materials in training programmes.05% 7. none of the companies give the case studies to the sales force. Maximum number of companies use only manual or leaflets that give the product details.35% 0% 0% Table-16 57 .manual or product leaflets cases none Graph-15 This graph gives the details about the instructional material provided during the training. And few companies never used any of these materials.
It is seen that most of the sales people get lot of help from training.73% 9.58% 2.very much helpful helpful some what helpful not helpful no at all helpful Graph-16 This graph shows us the level of help that the sales force gained by under going the training programme.58% 9. Inference: 72%of the sales people feel that training programmes are helpful in doing their job well FREQUENCY OR TRAINING PROGRAMMES How often the training is provided to you? Once a year Once in two years Twice a year Any other 78.58% Table-17 58 . There is no negative impact or results of training at all.
00% 20.89% 14.00% 50.00% 60.00% 80. Only few companies provide training more than once or even less than that.00% 40.00% once a year once in two years twice a year any other Series2 Graph-17 This graph shows how many times the training is provided to the sales people.00% 0.00% 30.00% 10. SUGGESTION BY THE SALES FORCE Any suggestions for improving the training programmes? Contents Method used Trainers Evaluation method used No suggestions 10.89% 69. Most of the companies provide training only once in a year.49% 2.90. Inference: most of the sales people (78%) are provided training once in a year.14% 2.00% 70.56% Table-18 59 .
63% 20.29% 22. Most of them have no suggestions and few of them suggest to improve in the case of trainer and the contents used or provided.00% co nt en ts tra in er s us ed us ed st io ns Series2 et ho ds et ho d m m This graph shows the details about what the sales people suggest about the training for its betterment.97% 9.00% 30. TRAINING NEEDS In which areas of your selling job you need training? Selling techniques Negotiating skills Communication skills Product knowledge Market knowledge Retailing operations Consumer behaviors Any other 22.79% 22.94% 0% 1.80.00% 60.00% 20.00% 10.00% 40.00% 70.00% 50.00% 0.35% 0% Table19 60 ev al ua tio n Graph-18 no su gg e . Inference: 69% of the salesforce have no suggestions for improving the training programme.
communication skills (22%). market knowledge (20%) are the areas which are prioritized by the sales people. The rate the selling techniques.selling techniques negotiating skills communication skills product knowledge marketing knowledge consumer behavior Graph-19 This graph shows us the areas in which the sales force feels they need training. Inference: selling techniques (22%). product and market knowledge as their first priorities. product knowledge (22%). EXPERIENCE OF SALES PEOPLE How many years of experience do you have in selling? 0-6 months 7-24 months 25-60 months >5 years 50% 50% 0% 0% Table-20 61 . communication skills.
This shows that most of the sales people the retail industry don’t stick to this industry for a long time. QUALIFICATION OF THE SALES FORCE Your qualification.38% 95. Inference: sales people in this industry do not have experience of more than 2 years.60% 50% 40% 30% 20% 10% 0% 0 to 6 months 7 to 24 months 25 to 60 months >5 years Series2 Graph-20 This graph gives the details of the experience that the sales people have in retail industry. Most of them have either 6 months or at max 2years. Below SSLC SSLC Graduation Any other 2.23% 2.8% 0% Table-21 62 .
below SSLC SSLC graduation anyother Graph-21 The following graph gives the educational details of the sales force in retain industry.05% 0% 0% Table-22 63 .35% 70. Almost all of them are either SSLC pass or even under that. Inference: 95% of the sales people’ qualification is SSLC. INCOME OF SALES FORCE Your monthly income (Rs) <3000 3000-5000 5000-7500 7500-10000 >10000 7.58% 22. They have the minimum qualification required to do the job. Most of the sales people in this industry are not highly educated.
So the income level of sales people in this industry is very less. Inference: 705 of sales force’ monthly income ranges from 3000 to 5000. Only few get five to seven and a half thousands per month. COMMISION AND INCENTIVES Does your income include commission or incentives? Only fixed salary Only commission Some percent commission Fixed salary + commission Any other 98.33% 0% 0% 1.<3000 3001 to 5000 5001 to 7500 7500 to 10000 >10000 Table-22 This graph gives the details about the income of the sales force in retail industry. Most of the sales people get between three to five thousands per month.66% 0% Table-23 64 .
Inference: 98% of sales people have only fixed salary in this industry.00% pe m isi rc on en tc f ix om ed m sa isi la on ry + co m m is io n sa la ot he r ry Series2 fix on ly on ly so m e co m Graph-23 This graph shows us the type of compensation paid to the sales people in retail industry.120. only few provide for incentives based on the performance.00% 40.00% 100. an y ed 65 .00% 60.00% 80.00% 20.00% 0. Most of the companies pay only fixed salaries to them.
The companies in retail industry give a lot of importance (79%) to the training of sales people.FINDINGS: 1. 66 .
10. CONCLUSION: The nature of training itself is undergoing a transformation. The pronounced change is a 67 . Black and white boards (50%) and product manuals (90%) are used as training aids in the training sessions. Most (93%) of the sales people feel training is very helpful in doing their job well. Most of the retail companies (70%) give salaries between 3 thousands to 5 thousands per month and mostly (98%) they give only fixed salaries. Most of the companies in retail industry have employed sales people with low qualification such as SSLC (95%) and Graduation (3%). 9. 4. 7. The training takes place in the company premises itself. market knowledge and negotiating skills are given the most importance in training the sales force in retail industry.2. 12. Most of the companies (25%) use lectures and on the job training (75%) as the training methods. 5. selling techniques. Most of the retail outlets (93%) have around 1 to 5 sales people working for them. Most of the companies (63%) do not have any fixed budget for training their sales people. without any incentives. 8. Organizational expectations for training have shifted dramatically. The training needs of sales people are assessed mostly (98%) on the basis of their job description. 6. 3. 11. Product knowledge. The training in most of the companies (79%) is provided only once in a year.
Effective sales training is the foundation upon which long term sales success is built. and very few use overhead and LCD Projectors. Most of them use black and white board in the training sessions as their aids. Basically the assessment of the training needs is done by Companies on the basis of job description of the salespeople. As training has moved from satisfying trainees to improving organizational and sales performance. The frequency of conducting the training programme to sales people in retail industry is mostly once in a year and most retailers do not have any fixed budget allocated for training programmes. In Retail Industry which is in boom from past one decade there is a drastic change in the way the business is run. Most of retail organisations have their own faculty from the company as the trainer. 68 . selling skills. This transition has been driven by the competitive nature of the international economy. The nature of training itself is undergoing a transformation. Hence the study indicates that for effectiveness of training programmes the sales people are given on the job training at the company premises. So the people in this industry are also changing with more professional outlook with more knowledge and skills to impress the consumers and make good sales at the end of the day. and market knowledge through training. The ability to generate and apply knowledge is a competitive advantage and in order to sustain competitive advantage of sales people they are provided with product knowledge. The study indicates that training of sales people is given importance to greater extent to meet the requirements.new and vigorous justification of the cost of training based on Return on Investment(ROI) and organizational impact.
case method of studies. However. The companies now are giving a lot of importance to the training.66%). and most of them are SSLC passed. incentives based on performance (1. Their salary ranges from Rs3000 to Rs5000 (per month) which is fixed and only few companies provide for SUGGESTIONS 69 . There are a few improvements required which can enable the sales people with even better skills to impress. Most of them are satisfied with the training being conducted once in a year. The areas included in training such as selling techniques. Finally to conclude. they have minimum qualification required to do the job. The study has also provided an insight in understanding the sales people point of view with regards to the training programmes that are provided to them by the company. role-plays. The experience of sales people is ranging from six months to two years. CDs is not used at all by any retailer in the training programmes. Most of the sales people in this industry are not highly educated. communication skills. convince and handle the customers very well. the training aspects of sales people in retail industry of Bangalore are well taken care.The instructional material provided during the training is manuals or leaflets that give product details. as it makes a lot of difference to the success of their business and to sustain in the market. Sales people feel the training programmes are helpful in meeting the requirements of the organisation. product knowledge and market knowledge have served the sales people’s expectations to a great extent.
• • Their should be better quality of trainers and the better methods of training needed as some of the sales people are not very satisfied with them. lectures. • • Specific training objectives should be outlined on the basis of performance parameters. demonstration of product etc. and type of product and market. the training content should be very simple and easy to understand. The trainee should be helped to see the need for training by making him aware of the personal benefits he can achieve through better performance. job description. hence. constructive feedback concerning their progress in training and implementation of the newly acquired abilities. • If necessary. case method. a combination of training methods should be selected such as role play. hence the sales people should be provided with training as and when needed to update their knowledge in addition to once a year training. Most of the companies provide training only once in a year which is not sufficient as the market is very dynamic. • The trainees should be provided with regular. video cassette/CD. • In retail industry it is seen that the sales people are not highly educated. 70 .
ANNEXURE 1) How much importance your company gives to training of salespersons? Why? 71 .
? 6) What are the aims or objectives behind training your sales staff? o Increase current skills and Knowledge o Increase sales performance o Motivating sales persons o Any other …………………… 7) What methods do you normally use for training programmes for sales persons? o Lectures o Audio-visuals 72 ...o o o o Very important Important Somewhat important Not at all important. 2) How training needs of salespeople are assessed? Based on o Performance Evaluation o Changes in products/markets o Job description o Any other 3) What is the strength of your sales force on o All India o Bangalore office Bangalore 1-5 6-10 11-20 >20 All India 1-5 6-10 11-20 >20 4) How often the training programmes are conducted for sales people? o Once a year o Two or more times a year o As and when needed o Any other…………………. 5) Do you have a yearly budget for training programmes? o Yes o No o If Yes how much…………….
o o o o o o Product demonstrations Role playing On the job training Business games Case discussions Any other……………… 8) Where does the training normally take place? o Company’s premises o Hotels o Any other..... 11) What type of products /services you sell? o FMCG or Non-Durable products o Durable products o Industrial products o Any other……………… 12) What are the contents of the training programmes for New and Experienced sales persons? o Product knowledge o Selling techniques o Market knowledge o Negotiating skills o Sales related marketing policies o Competitors knowledge o Any other 13) What type of training aids are used in your training programmes? 73 ....... 9) What drives you for training your sales force? o Customer satisfaction survey o Sales performance o Competitor’s analysis o Management feedback o Any other……………… 10) Who train your sales person? o Faculty within the company o Faculty from outside o Combination of a and b o Any other………………….....
74 . 14) What kind of instructional materials and training aids are provided? o Manuals/product leaflets o Cases o Any other……….o o o o OH projector LCD projector Black/white boards Any other…….. 2) How often the training is provided to you? o Once a year o Once in two years o Twice a year o Any other………… 3) Any suggestions for improving the training programmes? o Contents o Methods used o Trainers o Evaluation method used o Any other……. Thank you Questionnaire for the sales force 1) Has the training provided to you helped you in doing your job well? o Very much helpful o Helpful o Somewhat helpful o Not helpful o Not at all helpful.
7) Your monthly Income (Rs) o < Rs 3000 o 3001-5000 o 5000-7500 o 7501-10000 o >10000 8) Does your income include commission or incentive? o Only fixed salary o Only commission o …………. o Any other……………… 75 . 5) How many years of experience do you have in selling? o 0-6months o 7-24months o 25-5years o >5years 6) Your Qualification: o Below SSLC o SSLC o Graduate o Any other………….. Commission.4) In which areas of your selling job you need training? o Selling techniques o Negotiating skills o Communication skills o Product knowledge o Market knowledge o Retailing operations o Consumer behaviour o Any other……….% of commission o Fixed salary + …………….
com 77 .google.BILIOGRAPHY: BOOKS REFERRED: TRAINING AND DEVELOPMENT BY GOLDSTEIN WEBSITES: www.businessballs.com www.
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