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Latrobe Valley Product Gallery: Analysing Sales and

Customer Relations

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 List of Content

Executive Summary................................................................................................................................. 5
1. Introduction .................................................................................................................................... 6
2. Recommendations to Improve Performance ................................................................................. 9
2.1 Sales Strategies: ...................................................................................................................... 9
2.2 Increasing Internal Efficiency: ................................................................................................ 9
2.3 Making Long Term Relationships: ....................................................................................... 10
Conclusion ............................................................................................................................................. 11
References ............................................................................................................................................ 12
 List of Tables
Table 1 Total Sales.................................................................................................................................. 7
Table 2 Value added services pricing structure ...................................................................................... 8
Table 3 Commission Received ............................................................................................................... 8
Table 4 Commission Paid to Sales Representatives ............................................................................... 8
 List of Figures
Figure 1 Total Sales ................................................................................................................................ 6
 Executive Summary
Labtrobe valley product valley works in promoting space at trade fair and selling tickets to the
visitors. LVPG also provides a number of additional value-added services to exhibitors for
fees, such as organising exhibitor stands, developing marketing material for exhibitors to
distribute at fairs, arranging travel and/or accommodation for exhibitors, and
hospitality/catering for exhibitors to offer their customers attending the trade fair. The founder
of the Company is Ms Diamantina Rose; like every other individual business owner MS Rose
also wants to expand their business, generate new sources of revenue and decrease the
expenses.
This report focuses at completely analysing the company, its sales and revenue. It also states
some effective ways by which sales can be improved to a greater extent. Every individual
company is totally dependent on the individual customer base, which needs to nourished and
new strategies needs to be adopted to keep the customers engaging. This report aims at
enriching the customers and talks about the strategies which needs to be adopted to improve
the company’s performance.
 1.Introduction
Labtrobe valley product valley meets expectations in promoting space at trade fair and selling
tickets to the guests. LVPG additionally gives various extra esteem added administrations to
exhibitors for charges, for example, arranging exhibitor stands, creating promoting material for
exhibitors to circulate at fairs, arranging travel and/or settlement for exhibitors, and
neighbourliness/cooking for exhibitors to offer their clients going to the trade fair. There are
various sales representatives in the organisation, who are quite flexible in their working as each
one of them can easily undertake any trade fair type. Trade fairs include Builders, Clothing,
Computing, Food, Furniture, Government, HRM, Manufacturing, Sports, Vehicles and Wine.
The current sales strategy of the company is quite simpler and is outlined by basic
organisational practices and methodologies. Here, currently none of the sales representative is
specialised to work in a specific field, rather the customers are served on the basis of first come
first served; which implies that any of the sales representative who is not busy with some other
client will serve the customer in the queue, irrespective of his knowledge about the trade fair.
This at times creates a disguise amongst the customer, as it is quite difficult for a sales
representative to have knowledge of all the trades existing in the organisation. Current sales of
this organisation is presented in the pivot graph below:

1400

1200

1000
Count of Sales
800 Representative

600
Sum of Visitor
tickets sold
400

200

0
Sports
Food

Books

Books

Manufacturing

Vehicles
Computing

Computing

Wine

Computing
Furniture

HRM

Furniture

HRM

Furniture

Jarrah Kylie Shane Sheila

Figure 1 Total Sales

 Row Labels Count of Sales Representative Sum of Visitor tickets sold
Jarrah 5 634
Food 2 180
HRM 3 454
Kylie 37 4267
Books 2 191
Clothing 6 858
Computing 2 368
Food 9 1109
Furniture 1 35
Government 1 8
HRM 2 223
Manufacturing 1 29
Sports 3 259
Wine 10 1187
Shane 34 3092
Books 2 102
Clothing 9 729
Computing 4 513
Food 6 492
Furniture 1 41
Government 1 70
HRM 2 216
Sports 1 175
Wine 8 754
Sheila 24 2623
Builders 4 324
Computing 7 948
Food 1 118
Furniture 4 562
Government 1 98
Manufacturing 2 65
Sports 1 101
Vehicles 3 321
Wine 1 86
Grand Total 100 10616

Table 1 Total Sales

It can be clearly seen from the table above that the total sales of tickets by various sales
representative in different trades is above 10k. Now, the cost of these tickets can be
approximated with the help of unit cost. As stated that per ticket LGPV receives a revenue of
$8, thus for total 10616 tickets sold, total revenue generated would be $84,928. However this
is not the only way by which the company generated its revenue. Following table below states
the other sources of revenue of the organisation.
 Value Added Service Fee $A
Exhibitor stand organised 1350
Exhibitor travel arrangements 220
Exhibitor accommodation 150
arrangements
Exhibitor marketing material organised 1100
Exhibitor hospitality organised 170

Table 2 Value added services pricing structure

Referring to the fairs sheet it can be observed that during the initial years, which are 2004-2007
the growth of the organisation was quite constant and only some unit of sales and profit were
increased, which were consequently decremented in the next year; making the profit generated
constant. However with 2008, the organisation seems to have incremented the profit to a much
greater extent, with the highest revenue generated last year of around $103,000. Although, still
there have been some fluctuations in the profit and the sales in the concluding years.
The trade fair manager charges around $150 per sq. m. on an average. The commission received
by the organisation is quite distributed as in table below:
Commission Received Space Sold Rate (% of sale amount)
New Exhibitor (large) >= 20 sq.m. 20
New Exhibitor (small) < 20 sq.m. 17
Returning Exhibitor (large) >= 20 sq.m. 12
Returning Exhibitor (small) < 20 sq.m. 8

Table 3 Commission Received

Talking about the expenses, the company pays commission to the sales representatives in the
following manner:
Commission Paid Space Sold Rate (% of sale amount)
New Exhibitor (large) >= 20 sq.m. 10
New Exhibitor (small) < 20 sq.m. 8
Returning Exhibitor (large) >= 20 sq.m. 6
Returning Exhibitor (small) < 20 sq.m. 3

Table 4 Commission Paid to Sales Representatives

Besides this, sales representative are also paid $10/hour for their services.
It can now be approximated that the expenses are quite bigger, as compared to the revenue
generated. Although, it do not exceed the profit generated, but expenses can be decremented to
a greater extent.
 2.Recommendations to Improve
Performance
LGPV being a small organisation suffers from basic organisation defect, which concludes the
sales strategies, internal efficiency of working and most importantly making long term
relationship with customers. All of these lagging parameters can be improved using the
respective strategies and methodologies.

2.1 Sales Strategies:

All of the great organisations work most on their sales strategies. A sales strategy needs to be
built to gain higher sum of profits. What was your last year sales strategy? How are you going
to market? How are you going to kill the monster? What market opportunities or shortcomings
would you say you are going to adventure? What contenders would you say you are going to
take out? What new markets would you say you are going to enter? What industry changes
would you say you are going to influence, and so on? Beginning with an executioner strategy
is key. Having the wrong strategy or more awful yet no strategy can be pulverizing. These are
some of the things which needs to be taken into account to build an effective sales strategy.
Structure is framework that holds up strategy. It's the centre to executing on strategy. Structure
verifies you have the right pieces set up. Without a strong structure your strategy is dead in the
water. The key is to verify your structure underpins your key endeavours. Does your strategy
require inside or outside sales? Does it oblige seekers or ranchers? Does it oblige substance
and new web support? Does it oblige elective remuneration arranges? Does it require new
domains? What does your strategy require to be effective? Your structure needs to answer those
inquiries and verify the answer conveys for the strategy. Structure incorporates sales operations
and sales enablement also. It's all the things that empower your strategy to take flight.
The structure of the LGPV needs to be taken to account as it seems to be poorly build. The
sales representatives are paid twice, firstly on the basis of services provided per hour and
secondly on the basis of commission per exhibitor. Here the sales representatives can be
permanently hired on a monthly basis, which would eventually end in making the profit more
and the expenses less. To ensure that the representatives works with same enthusiasm, proper
objectives and goals needs to be given them.

2.2 Increasing Internal Efficiency:

Efficiency turns into the discriminating viewpoint for achievement in the impending year and
past. With rivalry wild and value a noteworthy thought for all, just those organizations that
minimize overhead and expand yield will be champs. Just agile firms that adjust rapidly have
the capacity to stay in front of patterns while keeping up worth and hobby. The capacity to
keep your business cantered while searching for new items and administrations is the thing that
advancement is about. Doing as such effectively is similar to attempting to cook an exceptional,
heavenly dinner without any preparation without squandering fixings or time setting it up.
Execution asks for consistency, and consistency can make a staleness brought on by reiteration
and weariness. In the event that your business continues doing what is generally done, your
deliverables will get to be stale and simple rivalry. Consequently, the need to improve and test.
In that lays the Catch-22: The more you change the less reliable and trustworthy you get to be,
and the harder it is to perform; to be effective and maintain a strategic distance from slip-ups.
The internal efficiency of LGPV can be increased by organising training workshops for its
employees, specifically sales representatives. These workshops would make them learn new
tactics and methodologies to gain more customers and thereby increase the sales and revenue.

2.3 Making Long Term Relationships:

At last, the best customers are regularly the individuals who continue returning to you for
additional. The subject of long haul business connections is a tremendous one that gets huge
numbers of the centre subjects of Customer Relationship Management (CRM). Instead of
endeavouring to climb that mountain.
Your association with the customer will keep up, and ideally expand, its esteem on the off
chance that you can demonstrate a proceeded with unbiased attitude and a target perspective
toward the changing needs of the association. This may not generally be simple, on the other
hand. More than a time of time, you will unavoidably create individual associations with the
association's staff individuals. It's just regular that a few ties ought to develop between you or
your staff and the association when you cooperate for a time of time, yet with cautious
administration these connections can be an important vehicle in reinforcing your association
with the customer.
To make long term relationship with the customers, core concept is making the process
interactive. For this variety of strategies can be adopted, including special conventions for the
returning customers such as making extra discount of gifting extra services for free. Overseen
accurately and overhauled immaculately, it’s the rehash customer who can truly help you
develop your counselling business. As opposed to softening up new connections or attempting
to get past the presentation stage with new prospects, you are confronted with the test of
keeping up a level of administration to the rehash customer that goes past the specialized or
critical thinking abilities that your different customers anticipate from you.
 Conclusion
LGPV currently promotes and sells two different sized stand spaces, to new or returning
exhibitors, for a number of Trade Fairs locally and overseas. On having a closer look into the
data sheets of the company, it was observed that the organisation had many deformities in sales
strategies, internal efficiencies and customer satisfaction. The report concludes the best
practices which needs to be adopted to improve the organisation performance. It was observed
that the organisation had quite less share in the revenue generated, which serves as profit; a
majority of the revenue was distributed among the sales representatives in the form of
commissions and hourly paid services.

A solution to this problem was incurred by permanently hiring the employees, moreover to
ensure the good working conditions and working efficiencies strategies were suggested, which
can be found in the report.
 References
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