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sales planning and operations.docx

sales planning and operations.docx

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Published by Nayomi Ekanayake
ABC is a DVD importing and distributing company which runs with an amount of 10 sales representatives, located in Sri Lanka. Within a short period of time (2 years) it has covered the some of the main cities in the country. Now the management has decided to make their sales activities more efficient than the existing system, in return of better profits.
The company is trying to come up with an integrated marketing plan to support selling activities. In order to their corporate strategies, the company has revised its sales strategies to restructure the sales department, and to fill in the gaps by recruiting new candidates, motivate and train the staff and introduce packages to attract them and to keep them in the company for a long period of time.
Databases of the company helps to keep potential customer details, to track the consumers buying behavior, patterns, and also the marketing research data which are more important to keep a good relationship with the customers. ABC has the potential to go to the global market with a collection of movies. It can start with some neighbor countries and then gradually expand it to a larger economy by joint ventures, direct stores or by e – marketing strategies.
ABC is a DVD importing and distributing company which runs with an amount of 10 sales representatives, located in Sri Lanka. Within a short period of time (2 years) it has covered the some of the main cities in the country. Now the management has decided to make their sales activities more efficient than the existing system, in return of better profits.
The company is trying to come up with an integrated marketing plan to support selling activities. In order to their corporate strategies, the company has revised its sales strategies to restructure the sales department, and to fill in the gaps by recruiting new candidates, motivate and train the staff and introduce packages to attract them and to keep them in the company for a long period of time.
Databases of the company helps to keep potential customer details, to track the consumers buying behavior, patterns, and also the marketing research data which are more important to keep a good relationship with the customers. ABC has the potential to go to the global market with a collection of movies. It can start with some neighbor countries and then gradually expand it to a larger economy by joint ventures, direct stores or by e – marketing strategies.

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Sales Planning and Operations

Individual assignment

Acknowledgement
I would like to express my gratitude to Ms. Inoka Gunarathne and Mr.Frank Gunasekara who gave me the possibility to complete this assignment and for the guidance and support they gave in preparation of this study. Especially, I would like to give my special thanks to my parents who enabled me to complete this work. However, it would not have been possible without the kind support and help from my friends. Last but not the least I would like to thank all our peers and staff at I.C.B.T and specially Mr.Dilum our coordinator who were ready to lend a hand in whatever way they can. I am making this project not only for marks but also to increase my knowledge. Thanks again to all who helped me.

CT/HNDBM/39/32

Page 1

ABC has the potential to go to the global market with a collection of movies. and also the marketing research data which are more important to keep a good relationship with the customers. direct stores or by e – marketing strategies. motivate and train the staff and introduce packages to attract them and to keep them in the company for a long period of time. to track the consumers buying behavior. Within a short period of time (2 years) it has covered the some of the main cities in the country. located in Sri Lanka. In order to their corporate strategies. The company is trying to come up with an integrated marketing plan to support selling activities. Now the management has decided to make their sales activities more efficient than the existing system. patterns. and to fill in the gaps by recruiting new candidates. It can start with some neighbor countries and then gradually expand it to a larger economy by joint ventures. the company has revised its sales strategies to restructure the sales department.Sales Planning and Operations Individual assignment Executive summary ABC is a DVD importing and distributing company which runs with an amount of 10 sales representatives. CT/HNDBM/39/32 Page 2 . Databases of the company helps to keep potential customer details. in return of better profits.

......... 17 2...........4...............................4.............................5 Methods to control sales activities .................. 16 2.................................................1 Use of Promotional mix to support Personal selling .................. 10 2..........................................4...........................................................................1 Revised Sales strategies in line with Corporate Objectives ..............................................................................................Sales Planning and Operations Individual assignment Contents Introduction ................................................................... 18 Conclusion .................................2 Territorial design .............................2 ABC recruitment and selection procedure ...................................................................... 17 Disadvantages of international market . 19 Recommendation.......6 Opportunities for selling internationally..... 15 2......... 14 2..........................................................................................4.............................................3 ABC Motivation and Training ................................... 10 2......................................................4 Sales management functions .................................................................................. 15 2........................................... 20 CT/HNDBM/39/32 Page 3 .... 10 What are ABC’s Sales strategies?............................................................................................................................................................. 15 2................................................................................................ 8 1..............................................................................................................................4.................2 Buyer behavior in relation to Purchase Decisions ................................................................................................................... 6 1.......................................... 12 2.................................................................................................7 Opportunities for using exhibitions to promote movie DVDs ....................... 14 2........................................ 9 Task 02 ................................... 5 Task 01 ................................................................................................................................................................................................3 Role of sales team within the Marketing Strategy............................................................................4 Sales records ............ 16 Benefits of international market....................................................................................................................................5 Use of databases in setting Effective Sales management program ..............................................................................................................................................................3 Sales targets .................................................................................................................................................... 14 2.............................................................................................. 4 Situational Analysis ..........................................1 Sales structure..................... 13 2.................... 19 Reference .................................................................. 6 1...................................................... 5 SWOT ......

CT/HNDBM/39/32 Page 4 . Data shows that the Company doesn’t use formal and planed sales strategies to carry out their sales properly and also that their strategies aren’t clear enough. comedy. new designs. Their movie range consist of children’s movies. music. Animation. which distributes and imports DVDs and movies in the Sri Lankan market for almost 2 years now. staff members don’t meet often since there is no schedule. documentary. drama. introduction of packages for the staff. This is because the ABC Company has spread their sales in different locations in a short period of time. It is understood that it’s a difficult task to do. sports. action and adventures. In the current situation there is a high competition for movie productions and distribution. opposite majestic city Colombo 04. family movies. Currently 10 sales representatives cover one main city with one sales manager in the main head office. field visiting schedules. TV shows. etc. concerts. Selling tasks are not properly organized.Sales Planning and Operations Individual assignment Introduction ABC Company is located in St. First of all staff should be expanded and allocated efficiently before moving to the sales strategies. Albans place. targets are not clearly defined. This report will further discuss about the recruitment and selection of strategies. sales plans for the products and further business expanding Potentials in the international markets.

When we take the external environment into consideration there are more opportunities to address than threats but should be prevented from the threats. CT/HNDBM/39/32 Page 5 . So we should try to maintain strengths further and to minimize the weaknesses.Sales Planning and Operations Individual assignment Situational Analysis SWOT • • • Staff with experience captured all the main cities in the country wide range of products • • • • poor communication No clear schedules Weak sales strategies No clear plans • • • Increase in demand for animation movies International economies Potential to spread to the other provinces • • • Competition New entries Tax increments Figure 1 .SWOT Analysis The diagram above shows there are a lot of weaknesses than strengths in the internal environment of the ABC Company.

when they do advertising they determine to reach large. low cost per revelation products and mention the uniqueness of their brand name. geographically scattered audiences. They get the information from them by using their representatives. banners etc. high frequency rate of advertising.Sales Planning and Operations Individual assignment Task 01 1. children magazines as well as posters.1 Use of Promotional mix to support Personal selling Advertising Sales promotions Personal Selling Direct marketing Public relations Figure 2 . CT/HNDBM/39/32 Page 6 . newspapers.Promotional mix  Advertising – when ABC Organization needs to inform their latest products to public they use different advertising methods. convictions and actions.  Personal selling – When the ABC Organization is doing personnel selling they look consumer preferences. radio advertisements. TV advertisements.

CT/HNDBM/39/32 Page 7 . ABC Company is doing different events and contests to reach the customer satisfaction and public relations. premiums.Sales Planning and Operations Individual assignment  Sales promotion – In sales promotion ABC Organization is using two main ways to promote their businesses.  Direct marketing – ABC Organization generally use this system.  Promote shops  Promote consumers When they promote shops they offer different discounts. they offer coupons. When ABC Organization promotes consumers. free goods out of stocks and provide advertising stuffs.  Public relations – ABC Organization is doing many advertising campaigns to maximize and close to public relations. and contests etc. They always try to increase market sales by selling their products directly to the customer. This report is mentioned about public relations for further in next sub-topics.

Understanding the buyer behaviour is being used by ABC Organization sales force to increase the sales persuasion. So ABC Organization is using different techniques and strategies to understand their buyer’s behavior. Children and family Geographic Region Size of city Demographic Age Kids and parents Sri Lanka Rural/Town Documentary Sri Lanka Rural/Town Gender Income male/female All the income levels Students. By maintaining and using a customer care center.     Collecting details directly from customers.2 Buyer behavior in relation to Purchase Decisions Individual assignment As a competitive business Organization. By keeping a long term customer database (as well as keeping financial records.Sales Planning and Operations 1. Collecting details from businesses (book shops. shop details). shop owners). ABC Organization has to understand their customers’ day to day preferences. professionals (18 and above) male/female All the income levels Every types of social classes Social class Behavioral Brand loyalty Every types of social classes Existing and new customers last consumption Existing and new customers last consumption CT/HNDBM/39/32 Page 8 .

3 Role of sales team within the Marketing Strategy Individual assignment To exist in this competitive market every organization has to do their task up to their best level. According to ABC Organization. Practical knowledge always gives the best result of the particular job. For an example sales persons should have better speaking ability to talk to customers. Conducting lectures to give a better knowledge of actually what they have to do. CT/HNDBM/39/32 Page 9 . These kinds of things can be improved through workshops. Workshops are always giving them practical knowledge for their job. He/she needs to make the customer to buy the product. Through the training method employees get to know how to react according to the customer. • • • Training period for the employees. They use above mentioned tools to achieve their goals.Sales Planning and Operations 1. there are few ways that they use to understand the customer buying behavior. ABC Organization uses these things to maximize their profits by selling their products as much they can. Everything can’t get done by theoretical knowledge. So the employees can’t assume this customer would be like this and so. Employees should always fulfill their customer’s needs. Customers are different from person to person. Send them for workshops.

Generally ABC Organization sets sales strategies from the advices of senior management and according to the corporate objectives as well as according to the position of product life cycle where they are in. Collecting information and maintaining a database. ABC Organization is representing a maturity level. Qualified owners of businesses know a sales strategy can create a competitive advantage.1 Revised Sales strategies in line with Corporate Objectives In today's economy. What are ABC’s Sales strategies?     Putting a shopping cart in their website. big and small businesses are seeking every occasion to win sales through competitive advantages. Build relationship with their consumers. CT/HNDBM/39/32 Page 10 . So the organizations use different kind of strategies to exist in the market.Sales Planning and Operations Individual assignment Task 02 2. In this level organizations need to avoid decline level as much as possible. Before explaining the sales and strategies. have to mention where ABC is in the product life cycle. Hiring top sales people.

if they want to increase the market share and also if they want to increase the sales volume etc. radio advertisements. Corporate Objectives HR Objectives *Hiring people. As I mention above ABC is using different sales strategies. Their HR objective strategies change when the HR objectives change such as when increase the wages or decrease. According to the ABC corporate objectives above strategies are also divided into three. *collecting information and hiring people. newspaper advertisements etc. CT/HNDBM/39/32 Page 11 . Marketing objectives *Putting a shopping cart in website. when cutting head counts or recruit people and also when new opportunity arises etc.Sales Planning and Operations Individual assignment In an organization corporate objective is divided into three such as production objectives. *Build relationships with buyers. Excluding those strategies they use TV advertisements. only top sales Product objectivs * by preserving a fixed price with suppliers. ABC sales strategies should be revised according to the day to day situations. Their Marketing objective strategies change when the marketing objectives change such as if they willing to go to the new market. And also they export products and import materials. and HR objectives. fluctuations of supply and demand etc. Through that they try to get absolute advantage and comparative advantage rather than the other organizations. corporate objectives and also according to the position that they reach in product life cycle. marketing objectives. ABC has to change their product objective strategies when the product objective changes such as fluctuation of material costs.

Advertising – When the ABC needs to recruit more employees they use different strategies. They use This methods because. Evaluation of the sources of labour – ABC evaluates how many labours are scared for the new posts and try to find where they can get the qualified labours. Job analysis – ABC Organization analyses their jobs before identify job descriptions. ABC uses two main selection methods. TV advertisements.2 ABC recruitment and selection procedure ABC uses different ways to approach recruitment and selection.   Processing applications – then ABC process applications which are suitable for posts. CT/HNDBM/39/32 Page 12 . Notifying applicants – after notifying applicants ABC prepare to select them according to their different skills which are suitable to different posts. Identify job vacancies – then ABC tries to find scant job vacancies. They mainly use newspaper advertisements. They identify the initial requirements.  Application forms.  The type and number of readers high.Sales Planning and Operations 2.      Individual assignment Human resource planning – first ABC plan their human resource to plan the future expectations. Success of the sales force is the selection of the effective representatives and it is a great waste if hired the wrong people.  Frequency rate is high. and radio advertisements.  The selection interviews. duties and responsibilities etc.

And also we give them a reasonable salary for the job they have done. so that will be an effective when they communicate with our customers.3 ABC Motivation and Training Individual assignment Employees can be motivated through satisfying their needs. As a large scale organization when we recruit people we are training them according to their positions. Remuneration and training also play a huge role in sales performance. Giving allowance for their effort. Allowances for each and every employee after one year. According to the ABC Organization they use few strategies to motivate their subordinates. Bonuses for New Year season and Christmas season. But up to some extent we have to fulfill their needs. So the employees automatically will motivate.Sales Planning and Operations 2. So to avoid that we are used to give them bonus. CT/HNDBM/39/32 Page 13 . • • • • Overtime bonuses. So that makes our productivity high and we are giving an allowance for his effort and to appreciate his work. If we recruit a person to fill up the sales person’s position we are giving a one month training to improve their skills such as to get customer’s attention towards hi m. For an example if one employee has done his job than we expected. Without giving them a fair enough salary they employees won’t work up to their best level. Through training and development also we can increase our sales performance. Employees are getting motivated above stated reasons. presentation skills and etc. That doesn’t mean we have give whatever they request.

Sales manager.Sales Planning and Operations 2. CT/HNDBM/39/32 Page 14 . 2. Sales supervisor 6 sales reps 03. One territory has to cover 1200 target of DVDs. Sales supervisor 6 sales reps Each and every territory includes 1 sales supervisor and 6 sales representatives and 6 cities covered by the each team.Structure of Sales department Head of sales department .2 Territorial design 01.Four sales supervisors. Sales supervisor 6 sales reps Figure 4 . Under the managers .Territorial designs 02. Three spans of control.4. where easy to communicate and control. 2nd and 3rd are monitoring the 18 geographical sales representatives while the 4th supervisor monitoring the 2 inside sales force as well as 3 distributors.1 Sales structure Individual assignment Sales manager Supervisor01 Supervisor 02 Supervisor 03 03 Supervisor 04 Field Reps 06 Field Reps 06 Field Reps 06 Inside sales force 02 Distributors 03 Figure 3 .4 Sales management functions 2.4. 1st.

2. Train the sales force to improve customer service. selling methods to gain more sales.3 Sales targets Individual assignment Targets are given to the inside sales reps and the outside sales reps as a control of sales activities. 200 DVDs = Inside telemarketers 200 DVDs = Geographical sales reps These targets are given on monthly basis. End of the month sales reps should be attend to the meetings with top management and show their performance in detailed. Targets increases commissions to the sales reps as encouragement and also to increase the sales of the organization.5 Methods to control sales activities       Daily sales summary should be e. monthly and yearly to define the revenues. This will enable to identify the best performances and seen them.4.4 Sales records All the sales people inside and outside should record their daily sales in their own data bases and should be reported to the supervisors for the evaluation purposes. presentation skills. It increases with the experience.00 am on next day to convince the office staff of recording them in the databases. CT/HNDBM/39/32 Page 15 .4. All employees should cover their sales costs as per stated and this will reduce the sales expenses and increase the profits.Sales Planning and Operations 2. It encourages sales force to achieve more. Sales would be analyze daily.mailed on the same day or before 8.4. expenses and profits. 2. others also will be keen on their performances. cash registers.

1.     Usage patterns and contacts of customers Evaluations of marketing activities. build to allow for implementation of effective marketing strategies. It is only possible if modern ICT is used and it enables the company to do three things. it is four times more expensive to win a new customer than it is to retain an existing one. cross-selling related products. An effective database can provide important management information such as. The database may be used to meet a variety of objectives such as focusing on prime prospects. requiring the marketing effort to be re-engaged time and time again. ABC can go internationally by first entering the neighbor country India. for example response rates Segmentation analysis to ensure accurate targeting Update market research information The database should not be seen as a tool simply to generate the one-off sale. The reason for this is simple.Sales Planning and Operations Individual assignment 2.S. Therefore customer database is an asset to the organization to improve their customer satisfaction and to deliver best products and services to the customer. Because of the high population with more young/entertaining minds. Japan and China. evaluating new prospect. Close customer relationship Keeping a record of customers and of all communication and commercial contacts helps to improve all future contact.6 Opportunities for selling internationally Entertainment is a want of customers to satisfy in their leisure/free time. Further demand 3. can be an advantage to fix a good international market. Then gradually expand the Organization to larger economies such as United Kingdom. U. launching new products to potential customers and identifying new distribution channels.A.5 Use of databases in setting Effective Sales management program A database is a collection of information which is available on past and current customers together with future prospect. Company’s target audience 2. 2. Database marketing is a customer oriented approach. CT/HNDBM/39/32 Page 16 .

and most importantly it should be very fast and trustable for the both parties. CT/HNDBM/39/32 Page 17 . Benefits of international market     Economies of scale in distribution and production. Disadvantages of international market     Differences in buyer needs and wants. and usage patterns for goods. Changes in the legal environment.Sales Planning and Operations Individual assignment Today 95% of the population uses the world wide web. Simply Master cards. It is much easier to satisfy the international customers by having a web site which provides customers with all the ranges of DVDs and upcoming movie DVDs. Opening branches in different locations is another good way to promote the business in international market. Organization can try to get absolute and comparative advantage. Discrepancies in customer response to marketing mix factors. Benefits of E-Marketing over traditional selling. When it comes to the advertising stream. Lower marketing cost. but when you considering the cost and the legal boundaries that is abit difficult way to take business into international level. internet can reach a large number of audience more cheaper. Then later on there will be a customer tail and company should arrange a delivery channel in order to meets the customer requirements. VISA cards and Pay Pal can use as payment methods. Discrepancies in brand and product enlargement and the competitive environment.

once a year or so. CT/HNDBM/39/32 Page 18 . product bundle and free try on products are offered it helps to sell more and promote at the same place. This helps to communicate the products for the target market easily as it is a mass promotion. prices and their strengths and weaknesses which indicate the threats and opportunities to address and prevent.  Help to research competitors.7 Opportunities for using exhibitions to promote movie DVDs Individual assignment Exhibitions are where lots of sellers meet lots of buyers at a place and these are not held very often. If there are exhibitions for DVDs it will offer opportunities such as   Increase the customer tail. because a larger proportion of the population visits exhibitions and it will go in word of mouth as well. Some times when a discount.Sales Planning and Operations 2. Thus exhibitions are also an attractive method of communication and selling product and services. their products.

motivation and remuneration. And these sales activities should be control to save time. In order to have a quality sales force organization should motivate them by financial and nonfinancial rewards such as proper training and attractive compensation packages. strategies for training. And also company can spread their goodwill through their brand name in the world among other kind of productions CT/HNDBM/39/32 Page 19 . and also types of the personal selling of the ABC Company. unnecessary expenses of selling and to increase profits. Recommendation If the ABC Company chooses an International market its worth using indirect export system. It’s very cost effective to a company because no need to open showrooms and hire sales people etc. territories and the sales should be budgeted to start at the beginning. Sales management functions should be efficient in restructure the sales structure. sales recruitment and selection procedure.Sales Planning and Operations Individual assignment Conclusion In this assignment I have included sales strategies.

Last accessed 18th Dec 2012.businessknowhow. marketing promotionpersonal selling. ().com/cs/sales/a/aa111002a. Available: http://tutor2u. anon. Personal selling. marketing communications. Available: http://sbinformation.com/marketing/top8mark. Available: http://www.about.Last accessed 11th Dec 2012.com/small-business- encyclopedia/personal-selling. (). Available: http://www. Available: http://www. Last accessed 10th Dec 2012.Sales Planning and Operations Individual assignment Reference   anon. (). Sales strategy creates competitive advantage.com/promix. CT/HNDBM/39/32 Page 20 .htm.htm. Last accessed 15th Dec 2012.asp. Top eight marketing and sales stratergies.  anon. ().enotes. ().   anon. Last accessed 10th Dec 2012.davedolak.net/business/marketing/promotion_personalselling.htm. anon.

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