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Industry which I have selected to do my assignment is Electrical Industry, were their products are sold to both consumer and Industrial customer segments. Products like cable and wires, Switch plates and motors etc« In this assignment particularly I have taken a product which we often use in our daily lives. Doesn¶t matter whether we are in our home or company but we still use daily ³Switch plates´. Earlier switch plates as just used as an electrical device to switch on or switch off something, but now even switch boards adds value to our home and company not only in the terms of design and prestige but also in terms of safety. It is even safer nowadays in home were there are children less than an age of six.
Some of the big players in switch gears or switch plates segments are Havells, Legrand, Indo Asian, Schneider, Finolex and Anchor. This Industry has grown in huge because in India many Industries has come in. many Retail business has started and because there is a huge growth in IT and Bpo sector this indirectly develop construction business keep on growing for which electrical equipment is one of the mandatory device or product used. In this assignment ³Havells´ company as taken as a reference to identify customer segment, Sales process, Sales organization and Sales force requirement and Motivation program.
Switch plates is a consumer durable electronic good. This is a very mandatory product were people use for construction of houses, new sites, new companies and also used for renovation of old buildings and for replacing old ones or for extending new rooms or area. So their customer segmentation is both consumer and company since it is used in both the segment. Since switch plates is used in everyday life people think about long life, safety measures and to
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be attractive. Since it satisfy all the three needs psychological need, security need and esteem need customer are less cost conscious about this product and never mind paying little extra for getting good goods for satisfying all the three needs. So taking Havells as a reference for this assignment, their segmentation of customer are Upper middle income group people, lower upper class, middle upper class and upper upper class but it mostly covers only urban areas and larger of sales in Metropolitan cities and some of developing states. Since there is many lesser value brand like anchor and finolex are available havells is not that much attractive in rural cities and some of undeveloped state, but if we take whole switch plate product for the segmentation it attract all mode of people except people who are very poor and who does not have house. Havells attracts mostly newly constructed building may be house or company because for company and house holds it¶s a status and a measure of safety to have havells in their home and also since people are very much interested in interior decoration they would like to have everything unique and good looking. That is the reason they are motivated to buy Havells modular switches.
A Sales process is a systematic approach to selling a product. Reasons for having a well thought-out sales process include seller and buyer risk management, standardized customer interaction in sales and scalable revenue generation. Sales process for consumer and for Industrial customers. FIGURE: 1
Sponsoring in sports activities (T-20 worldcup, Ipl, England series India etc«)
Sponsoring for commercial dramas in Star plus.
Advertising in Paper, entertainments media etc«
Sponsoring in Home Exhibition conducted by Real estate companies, builders, promoters and for companies who are in construction business. These are the first step by how people would get recognition about the product. This is common for both consumer and Industrial consumer.
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Consumer sales process:
FIGURE: 2 Lead identification
Sponsorship, advertising, promotion. Stalls in Home exhibition. (Or) Electrical exhibition After awareness or recognition of the product.
Dealers (were many brands are available ± were people can choose one among many)
Havells Galaxy (Backward Integration ± Companies own shop were many collection of electrical and fitting products are available for their customers).
Industrial consumer sales process:
Sponsorship, advertising, promotion, stalls in Home exhibition.
Negotiation and Closing.
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These are the several steps followed in sales process for both consumer and Industrial consumers. For consumer and Industrial consumer, process of recognition and brand awareness may be same but getting about the lead or little different. In consumer selling role of Sales force is not that much high when compared to the sales force required for Industrial consumers. Though the sales force is needed for consumer also it does not require as that much required for Industrial customers. In consumer selling after the consumer become aware of the product the main most thing for their company is to make product available for the consumer with the help of dealers were in they can be both wholesaler and retailer or it can be done by the same way as Havells done it by following a strategy called a backward integration and setting company¶s own shop ³Havells Galaxy´ were only their brands available more easily and at discountable price. In consumer selling, if we can see at figure: 2 we can identify that sales process is closed in one step for acquiring that product in exhibition were in consumer who have build up new hose or people who are looking for houses come there. So possible of closing the sales are easy in this kind of product for consumer selling. In Industrial consumer selling requirement of sales force is higher, but it also depends upon the size of the Industry. If it is a small or medium sized Industries either they can get directly from the wholesaler or directly they can go and approach to their companies own shop Havells Galaxy and get at good discounts buying in bulk or else they can have a direct dealing with the company to supply them. FIGURE: 4
SMALL OR MEDIUM INDUSTRIAL COMPANIES
Directly from wholesaler or dealer
Directly from company in case of big Industrial customers
They can go and purchase directly or ask them to deliver directly from their shop havells galaxy
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As shown in the figure: 4 Industrial consumers receive their product or service as per the size of their organization. But only in the case of small enterprise they can finish of their closing sale very easily but in case of meeting medium and large industrial customers they have to follow all the steps as shown in figure: 3.
Since Havell have different product under electrical Industry and also because they have their own shop Havells Galaxy their sales organization can be divided as shown in Figure no:5.
FIGURE NO: 5
General sales Manager
Sales Manager for Industrial consumers. Shop or Store Manager
Sales Manager for consumer products.
Sales Promotional Managers
Director of sales analysis
Sales personnel Page | 5
From the above Figure: No. 5 we can see the sales organization of an havells company. They have three sales forces team one for Consumer product, other for Industrial consumer product and another one for store. For which they are controlled by Sales Manager for Consumer Product, Industrial Product and Stores respectively. For all the three categories there are three common activities Training, Sales promotions and Sales Analysis which is done by training director, Sales manager and Director of sales analysis respectively which help the sales force team to capture the correct and segment market and perform better. For E.g.: Training makes people more skillful, efficient and knowledgeable. Promotional activities make people aware and remember about the product which make sales force job very easy to introduce. Sales analysis makes sales force team to understand their target, roles and responsibility and work accordingly. For all this department front line employee i.e. sales personnel act as a key player for creating and generating business. In shop their role his to help the customer to find the things, in Industrial consumer he would be responsible to do Initial contact and sales lead. In exhibition also sales force is used very effectively. Thus sales force plays a major role in almost all the activities.
SALES FORCE REQUIREMENT:
Sales force requirement is nothing but Recruiting and selecting of sales personnel. In Electrical Industries while recruiting the sales force the preliminary activity of the company is to do job analysis, write job description and prepare job satisfaction. Since electrical industry needed sales people who have knowledge about technology needed since they are the front line employee and the role of sales personnel also very huge here since India is a developing country. So, Recruiting can be done by sales manager itself to understand knowledge about the sales personnel. In this Industry its better to fill some main or critical area with the people who are already existing with their company as a Internal. Recruiting referrals is of major advantage because a person who refers his or her friend for their organization knows their roles and responsibilities it is better to select a sales personnel in Referrals system. Nowadays there are lot of ways to recruit people, many consultancy are there who helps us to get the exact sales person required, Campus recruitment, advertising through paper and through employment agencies etc«
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First step of selecting sales personnel is to do pre-interview screening were the people would be rejected and selected for interview based on their experience, qualification and skill set. Here they filter the resume for selecting a effective sales force. Second step is to Interview the person. Third would be doing credit checking and checking with references and in selection process they should not forget about doing physical examination of an employee and final would be offering employment. Qualification required in electrical industry Bachelor¶s of marketing or electrical engineers. If it bachelor¶s of marketing they need some experience in same industry or if he his fresher some extra training should be given. If it is an engineers and have no prior experience in marketing need an additional training in building their marketing skills. Some fundamental knowledge of the power, cable and wires business and market in the world is required. Skill-sets required are having technical background, having marketing and sales skills, presentation skills. Strong interpersonal relationship and team spirit. Technical marketing skill and product knowledge in electrical market. Strong strategic thinking and problem-solving skills are essential. Ability to work under pressure and to be focused on customer and time management.
Motivation is nothing but setting a major goal and setting up a path. Effective motivation would be Appreciation of good job done, Helping on personnel problem by the manager, Job security, good wages, Interesting work, promotion and growth in the economy, work culture and personal loyalty to employee. Motivating employee would result in less absenteeism and high productivity with quality and for exploring new methods. People, who are motivated, are highly committed to his/her work.
In this electrical industry people is motivated in following ways: People can be motivated by giving them exact role specification. Giving adequate training to their employee. This helps new sales person to understand more about the company, process since it is a technology oriented industries.
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Linking sales person in group performance activities like promotional campaign, trades and exhibitions were they can meet new people and know about their competitors and more over being a part of the team is esteem for a front-line employee. o o o o o o o o o o Setting up of achievable goals. Giving them routine feedback and encouraging them on their performance. Helping their employee in case if he needs any help in handling certain customers. Promotions to reduce employee attrition. Incentives as a factor, for which company pay them extra for the extra target achieved. Rewards and recognition: Setting up individual goals and seeing individual effort and calculating their individual performance and rewarding them. Leadership should lead like an example for their sales person. Leader should take their salesperson into confidence while achieving challenging goals. Contribution of leader to achieve group goals. Encourage and advice them to use effective sales techniques.
In this electrical industry, these are the identified sales process, sales organization and motivation program followed by the companies whose products are sold to both consumer and industrial consumer segments.
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http://www.havells.com/ http://www.laynetworks.com/Theories-of-Motivation.html Sales Management Still, R R & Cundiff, E , (5th ED), Prentice Hall
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