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Have your

Laptop
Complete Sales Plan….

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Contents
ABSTRACT.....................................................................................................................................3
MARKET SCENARIO....................................................................................................................3
Growth Drivers ...............................................................................................................................4
Why laptop over Personal Computers?........................................................................................4
CREATING AN ENTREPRISE:.....................................................................................................5
COMMERCIAL OPPORTUNITIES..........................................................................................6
BPO Industry...........................................................................................................................7
Telecom Industry.....................................................................................................................7
IT Industry...............................................................................................................................8
Institutes & Schools.................................................................................................................8
Other Industries........................................................................................................................9
PRE-SALES PREPARATIONS....................................................................................................10
Prospecting.................................................................................................................................10
Steps in prospecting...................................................................................................................10
Sales Lead..................................................................................................................................10
SALES - Institutional sales...........................................................................................................11
Sales Territory ...........................................................................................................................11
Sales potential............................................................................................................................11
Sales forecast.............................................................................................................................11
Forecasted Volume for the year 2010 – 2011........................................................................12
Industry wise quarterly forecast.............................................................................................12
Quarter I April’10 to June’10................................................................................................12
Quarter II July’10 to September’10.......................................................................................12
Quarter III October’10 to December’10................................................................................13
Quarter IV January’11 to March’11......................................................................................13
Forecasted Volume for the year 2011 – 2012............................................................................13
Industrywise quarterly forecast..............................................................................................13
Quarter I April’11 to June’11................................................................................................13
Quarter II July’11 to September’11.......................................................................................14
Quarter III October’11 to December’11................................................................................14
Quarter IV January’12 to March’12......................................................................................14
Sales quota.................................................................................................................................15
Monthly Sales Quota per Sales Executive for Year 2010-2011............................................17
Monthly Sales Quota per Sales Executive for Year 2011-2012............................................17
Sales Budget...............................................................................................................................17
Sales Budget for Year 2010 – 2011.......................................................................................18
Sales Budget for Year 2011 – 2012.......................................................................................19
Preparation Of Profit & Loss Account...........................................................................................20
Inference from the Profit & Loss Account for Year 2010-2011................................................20
Profit & Loss for year 2010 – 2011.......................................................................................21
Inference from the Profit & Loss Account for Year 2011-2012................................................22
Profit & Loss for year 2011 – 2012.......................................................................................23

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HuL
Have your laptop

ABSTRACT

The growth of laptop in India has leapt bounds, mainly due to the influence
created in the west. We normally tend to adopt what people in US and UK did
couple of years back. A perfect example to define would be change in Attire
to the different Cuisines available. We have the habit of inhibiting the culture
from the western countries.

One such, which is growing silently, yet rapidly is the usage of Laptops
among young office executives to students.

MARKET SCENARIO

According to IDC India, a premier global market intelligence firm, the laptop
market has registered 79% Year-on-Year (YoY) growth during 2006. The
laptop sale is growing at much faster rate than projected.

As laptops become more affordable and as consumer preference shifts to


mobile devices, laptop sales in India hit a 114 percent year-on-year growth
rate in 2008 with 1.8 million units. This growth rate far exceeds that of
desktop PCs, which is predicted to soon be overtaken by laptop units.

According to India’s Manufacturers Association for Information Technology


(MAIT), laptops account for 25 percent of the total PC market in 2007-2008,
shooting up from less than 3 percent in 2004.

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In the first half of the current financial year, Indians bought nearly 153,000
notebooks, compared to 36,000 units in the same period two years ago, said
a recently released performance review of MAIT.

Growth Drivers
• Indian Laptop market in now in sync with global market. It was in 2005
that sales of laptops surpassed the sales of desktop computers for the
first time in India.
• The Laptop market is growing at a fast rate because of change in work
life of consumers. As the need for "anytime anywhere" access to
information is increasing, the sales of Laptops are also increasing.
• Other factors that are responsible for the hike in sales figure are
reduction in prices and affordability. Laptops are now sold at
approximately half the price at which they were sold two years ago.
Laptops prices are now almost at par with the desktop computer
prices.
• The third most important factor is duty free import of Laptops as a
personal baggage that has helped a lot in increasing the penetration
level of the product among the consumer population. Awareness about
laptops has also increased over the years

Why laptop over Personal Computers?

1. Laptops, by design, are smaller


and more compact, so they easily
portable.

2. With laptop, computer users no


longer need to have to rush to get to

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home or back to the dorm in order to “get to work,” since they bring
their work along with them.
3. The laptops are preferable over desktops is that they can run on a
long-lasting battery and do not necessarily require a wire hookup to
access the Internet.

4. The availability of Wi-Fi services all around the places make it


convenient for executives to be in touch with work on the move.

“We invent nothing. We merely rediscover that which we had forgotten”-


Socrates

CREATING AN ENTREPRISE:

We intend to set up a one stop shop for all Computer needs with primary
focus on Laptops.
There could be a question arising in the minds saying of many saying with
Major brands like Croma, IT @ Home, E – Zone, Big Bazaar prevailing in the
market; where would our company be positioned.

We intend to primarily cater as B2B enterprise giving IT solutions to major


establishments in and around Gurgaon. This idea entirely came from the
concept which Dominos Pizza evolved a decade back, delivering Pizza at
home within 30 Mins.

In big establishments, the Systems manager would not find time to visit the
showroom, analyze which is the best selling laptop and place the order. They
would just place the order for the laptop model over the phone and would
want it delivered at their office

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We felt this to be the most and primary factor in opening up an enterprise to
cater establishments, B Schools etc.

We have chose to open our maiden showroom in Gurgaon, the millennium


city was recognized as a potential destination for investors after the
liberalization of the Indian economy post 1990s due to its proximity to New
Delhi and smart policy initiatives of the Haryana government. Today,
skyscrapers and modern shopping malls dot the new city, which has seen a
major real estate boom since the late 1990's.

COMMERCIAL OPPORTUNITIES

The commercial opportunities are wide open for this establishment as many
establishments prefer to Laptops over desktops and with every new
employee being added, they would require a laptop to the given
immediately.

Nowadays laptops have become a must held device in all B Schools, so that
students can prepare on their own for the mock presentations, preparing
reports etc. In a recent study, Schools and Colleges are planning to bring in
the concept of giving laptops to students to help them in bringing down the
burden of carrying books.
There is no such thing as a failed experiment, only experiments with
unexpected outcomes’ – Buckminster Fuller
TARGET SECTOR / INDUSTRY

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BPO Industry

Providing customer support through Chat and Email. Non-voice support


being provided using chat tools. Collect on past-dues, negative-status
accounts across various verticals. Maintain the content for various purposes.
[website, marketing material, newlsetters etc.] Get new customers for the
client [cold calling]. BPO is the largest utilizer of computers /Laptops
for there international growth accounting functions etc.

List of BPO’s in Gurgaon

 Arvato Services India Ltd


 Progeon
 WNS
 Amtier Infotech Ltd
 IBM

Telecom Industry

Telecommunications specialists design voice and data communication


systems, supervise installation of these systems, and provide maintenance
and service to clients after installation.
They as information distributors, client representatives, construction
supervisors, and maintenance liaisons. The work in this industry is
totally based on PC s and laptops
List of Telecom Companies in Gurgaon
 Ericsson
 Ciena
 Motorola
 Alcatel-Lucent

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 Nokia Siemens

IT Industry

Information Technology industry mainly focus on providing software


solutions for the companies – involve themselves in creating software. The
work in this industry is totally based on PC s and laptops

List of IT Companies

 Evalue Serve
 Agilent Technologies Pvt Ltd
 Quardant Software
 Alcatel Software
 Outsource Software Development Tech

Institutes & Schools

With the growing world at the rapid speed to keep us connected with the
world and to explore things, nowadays institute provide laptops for the
students.

List of Management Institutes


 IIPM
 IILM
 Alcon School Of Management
 Infinity School Of Business
 Pearl School Of Business

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Other Industries

 Copco India Ltd


 Mcube Consultants
 Ranbaxy Laboratories Pvt
 Papa Jones Pizza Ltd
 Apollo Tyres Ltd

To know the business aspect, market prosperity, survey, government


policies,
General from day to day accounting, website marketing to customer
relationship management all works are computerized so there is a very high
scope for the use of laptops in all sectors and all industry.

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PRE-SALES PREPARATIONS

Prospecting

Prospecting is all about finding prospects, or potential new customers.


Prospects should be 'qualified,' which means that they need to be assessed
to see if there is business potential, otherwise you could be wasting your
time.

Steps in prospecting

1. Identify the customer’s critical requirement


2. Categorize your prospects
3. Study your customer
4. Get an appointment

Sales Lead

Preparing a prospect base – a good customer information guide.


• Corporate List Of Companies
• Registrar of Companies
• Special Economic Zones
• Directories
• Internet
• Word of mouth

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SALES - Institutional sales

Sales Territory

The specific region or group of customers for which a salesperson has direct
responsibility.

Sales potential

This is the share of market potential allocated to a specific geographic area


for a particular product, or the share of the total market potential that a
manufacturer can reasonably expect to sell. The overall figure is always
optimistic and must be pruned down by other factors.

Sales forecast

The amount of a product that the company actually expects to sell during a
specific period at a specific level of marketing activities.

75 - 100 laptops / notebooks per month

Note: As per the research we have arrived at this value.


From the survey we did; the sectors are expected to contribute as follows:

IT / BPO Sector - 50 %
Telecom Industry - 25 %
Educational Institutions - 15 %
Other - 10 %

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We have forecasted the data for the 2 consecutive years namely:

April 2010 – March 2011 & April 2011 – March 2012 respectively

 Forecasted volume for every quarter


 Industry Wise demand forecast
 Projected monthly sales quota

Forecasted Volume for the year 2010 – 2011

Industry wise quarterly forecast

Quarter I April’10 to June’10

Quarter II July’10 to September’10

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Quarter III October’10 to December’10

Quarter IV January’11 to March’11

Forecasted Volume for the year 2011 – 2012

Since the market for computers and laptop is a fast growing market and as
per the information available in the public domain, the growth is about 25%
and hence we take a growth rate of 25% for the financial year 2011 - 2012

Industrywise quarterly forecast

Quarter I April’11 to June’11

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Quarter II July’11 to September’11

Quarter III October’11 to December’11

Quarter IV January’12 to March’12

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Sales quota

This is the percentage of sales potential assigned to a particular


representative or territory.

A sales goal or objective that is assigned to a marketing unit. The marketing


unit in question might be an individual salesperson, a sales territory, a
branch office, a region, a dealer or distributor, or a district.

No – of Sales Persons required - 5 persons


No. Of clients / organization per day - 2 Clients
Total no. of working days - 20 days

Totally Sales will be covering 2 x 20 x 5 = 200 clients /


companies

From the forecast we have done it is understood that there is an average


demand of 100 laptops per month for the target market. As per the estimate
we have done each sales representative would sell on an average of 20
laptops per month.

Hence to achieve the budgeted monthly sales volume we will require 5 sales
executives.
In this situation the size of the concerned order is large and money
involved is also large, a lot different departments of the organization may
get involved and entire process may take a few days to complete. We also
have an advantage to get repeat orders.

Based on sales forecast that we made on the estimated sales force, we


arrive at the sales quota for the sales executive

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Monthly Sales Quota per Sales Executive for Year 2010-2011

Monthly Sales Quota per Sales Executive for Year 2011-2012

Sales Budget

1. We have taken the sales cost to be 90% of the Sales & Marketing Cost
which is taken as 2500 INR per laptop, for the year 2010-2011.
2. The salary of sales executive and sales manager is taken as 3, 00,000
INR and 5, 00,000 INR per annum respectively.
3. We have accounted for the travel allowance that every sales executive
will be entitled for. The sales executives are assumed to travel 50 km a
day for 25 working days in a month at a cost of 5 INR per km.
4. Telephone allowance is taken to be 1,000 INR for sales executive and
1,500 INR for sales manager
5. As per the incentive plan, sales executive will get an incentive of 200
INR for every laptop sold.
6. We have considered 10% cost escalation for the year 2011-2012.
7. As per the plan, the cost of sales force will be within the budgeted cost

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Sales Budget for Year 2010 – 2011

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Sales Budget for Year 2011 – 2012

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Preparation Of Profit & Loss Account
Following points are assumed for the preparation of Profit & Loss Statement
1. Total investment in starting the business if 50 million INR
2. No fund was raised from external resources and hence no interest
burden on the company
3. Selling price of each laptop is 35,000 INR
4. Direct cost of manufacturing each laptop is 20,000 INR
5. Sales & Marketing Cost is taken to be 2500 INR per laptop; of which
90% is considered as sales cost.
6. Overhead expenses is taken as 1000 INR per laptop
7. Depreciation of asset is taken as 20%
8. Corporate tax is taken as 30%

Inference from the Profit & Loss Account for Year 2010-2011

1. In the financial year 2010-2011; the company makes loss for the initial
5 months from April to August owing to the lesser demand as we start
business and high unit fixed cost.
2. The company starts making net profit from September 2009.
3. In spite the profit started accruing from 6th month of operation; the
company makes a net loss of 3, 40,000 INR in the first year of
operation due to high depreciation and nascent stage of demand in
first two quarters.

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Profit & Loss for year 2010 – 2011

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Inference from the Profit & Loss Account for Year 2011-2012

1. The rise in selling price of laptop is taken to be 10%


2. The direct cost, sales & marketing cost and overhead expenses
increase by 5%
3. In the financial year 2010-2011; the company makes profit from April
2011 due to increased demand.
4. The company makes a net profit of 6.5 million INR in the financial year
2011-2012

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Profit & Loss for year 2011 – 2012

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QUESTIONNAIRE

Industry / Organisation Name :

Sector :

1) Which of the following does your organization prefer for middle level executive

a. Laptop

b. Desktop

2) The ordering for laptops, how is it normally done:

a. Phone

b. E – Mail

c. Visit the showroom

3) How many laptops would be bought on an average in a month

a. 10

b. 50

c. 100

d. Above 100

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4) How is the service offered by the present service provider:

a. Very good

b. Good

c. Average

d. Poor

5) The respective contact person in this organization who places order for laptops:

Thank you for your valuable time and patience .

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