Sales Management

December 2021 Examination

Q1. Design a Sales Process when your organization is intending to enter Kenyan Market
(10 Marks)

Ans 1.
Introduction 
For American investing groups to flourish in Kenya, they would need to gain good knowledge
about the market before making their investment. This involves the process of figuring out how
the market can be introduced to a product in the most beneficial way. Occasionally, U.S.
corporations may become local agents or retailers of Kenyan companies if they discover that it
can be an effective partnership. Additionally, licenses and franchises are also available for use on
other channels in the neighborhood. It is essential to understand the logistics of the market in
some regions, and contact potential clients through exposure, social media, or targeted
campaigns tailored to the locales. The possibility of acquiring direct income for end-person
groups is equally feasible at the same time. Firms advertising in central and outer urban areas of
their customers can consider these regions as their local vernaculars. There are many other
aspects involved in conducting any kind of market study including visiting the local market to
connect with potential local partners, establishing hyperlinks, and assessing market potentials.
Kenya has numerous vital participants that would provide treasured business increase,
networking, and marketplace intelligence source.

Concept and application

With consumption in Kenya growing, overseas and local firms of all sizes promote within the
eastern African United States. In Kenya, there are loads of achievement testimonies from
enterprises. The country can be a tough nut to step forward for all its economic and funding
possibilities. Take South African agencies' disastrous ventures in the past. The lesson for
corporations is to both undertake comprehensive research and implement educated techniques.
They provide the USA and the more extensive East African area a wide range of commercial
enterprise partners for providers and manufacturers to enter customers.

Through this process we are to decide the importance and urgency of the request for products or
services. In Nigeria or South Africa, for example, what might successfully sell might fail since
shoppers choose to pay attention to the price for money and the delivery of the products rather
than the quality. A competitor further studies the originality of a product or service and verifies it
against competitors.

It is the responsibility of the Kenya Standards Bureau (KEBS) to regulate and standardize the
quality of all products imported from overseas and locally produced on the Kenyan soil. The
government of Kenya has enforced restrictive trade guidelines for unique objects, like maize and
tea, designed to expand and hold sure neighborhood companies. Discover whether service or
product impacts such law duty. Understand the product requirements and the criteria for
accreditation, labeling additionally, and marking. Become aware of possible issues. KEBS, for
example, is said to be time-consuming and expensive for the compulsory pre-shipment
verification for compliance with widespread (PVoC) programs.

First-class distributors for the FMCG business. There are five connections: manufacturer-agent,
provider-shopper-client, the usual product distribution chain. As an example, Distell presents
neighborhood retailers Distell Wine masters with vendors Mwalimu Wines & Spirits. Mwalimu
will then promote checkered checks to inventors who could sell to pubs or stores. But, according
to activity Ireri of Distell Wine masters, distributors are locked out as extra operators select
vertically integrated business fashions because of the fast improvement of foremost retailers,
including Nakumatt. As in maximum African nations, the last mile of logistics for many
operators in Kenya is difficult. As in leading African countries, the ultimate mile of logistics for
many operators in Kenya is difficult. Influential players, although, have their geese in line. Many
primary drinks and different hastily changing patron merchandise vendors cowl the complete
USA. Some organizations have depots and employees in vital places.

Opportunity to acquire distribution partners who have access to a large sources pool and
establishment of new corporations as competitors who are now in competition with local brands.
Kenyan distributors must also pay attention to their requirements when assessing capability
suppliers. It has to include an image of a trustworthy and reliable business partner from a clear
perspective, based on the goals as a supplier or manufacturer in total harmony with the corporate
objectives.

Conclusion

As the United States or other overseas export companies do not have to have local agents or
distributors in Kenya, Kenya does not have any rules, policies, and policies that require them to
do so. It is, however, very important that a U.S. company retains an agent or distributor residing
in Kenya in order to market to investors in that country. This degree of the sales manner refers to
all past due-level actions taking area while a contract is being concluded. It's miles extensive-
starting from business to business and may entail filing a quote or suggestion, negotiations, or
the acquisition of selection-makers. The give-up of a sale is the fulfillment of every salesperson.
It should result in an agreement between the prospect and the seller that is at the same time
advantageous. After the deal is concluded, the supplier earns a commission for the patron's price,
and the account is generally transferred to the account manager or purchaser success consultant.
Q2. How would you set up a sales organization (team) for a FMCG company setting up
their operations and having headquartered in Mumbai? (10 Marks)

Ans 2.
Introduction 
The short-moving consumer goods (FMCG) business is the fourth largest segment within the
Indian financial system. Three essential additions can be found in this area: half of them are
those belonging to the spouse, children, and other relatives, 31 percent are fitness services, and
the balance of 19 percent is foods and beverages. FMCG companies in this town are responsible
for 55% of the income received by the companies in the FMCG sector. Once again, the
provincial component represents 45% and has evolved more rapidly than the metropolitan
component. Inland regions and in the back of the improved distribution channels of the FMCG
corporations, interest for quality products and companies have expanded. The Indian authorities
have authorized 100% FDI in cash and transferred the region's share to multi-logo retail with
51% FDI. Global merchants in India who're fast building their image may also benefit from the
history of the country's improvement in use. As a result of the GST, that was introduced in 2017,
the FMCG sector became a beneficiary.

Concept and application

In today's fast-moving markets, companies that apply technology to overcome long-standing

problems and leverage new opportunities are swiftly shifting their clients' goods (FMCG).
Companies in the FMCG industry have to maintain zero inventories at their shops and be able to
deliver products on a fast, timely basis. Over the next ten years, it is projected that the rapidly
transferring consumer goods (FMCG) sector will experience an annual growth rate of 10-12
percentage points. Consistent with the Boston Consulting Group, India is anticipated to emerge
as the third-largest consumer financial system inside the international via 2025. The e-commerce
zone in India (B2B) must attain $700 billion utilizing 2020. For distribution functions, maximum
FMCG and pharmaceutical corporations rent Clearing and switch retailers (C&F) for each
region, typically a state, where the C&F retailers serve inventories. Taxes differed between
countries before a national VAT, referred to as fashionable carrier Tax, was brought in 2017.
Retail pricing is now the same across India in any respect ranges from manufacturer to end
customer. C&F officials quickly became the same old on the value of setting up warehouses.

India is primarily a conventional and relatively exclusive distribution channel structure. The
primary components of the channel are the retail, wholesale and logistical networks. There are
more than 9 million retail networks in India. This consists of traditional stores such as paan
shops, grocers or kiranas, well-known shops, specialist stores for footwear, clothing, jewelry,
clocks, mobile phones, client durables, and modern formats like supermarkets and hypermarkets
online stores.

The options have grown countless with digitalization and globalization. A complicated
distribution network and an extreme rivalry pressure businesses to work continuously on supply
chain innovation that is ideal for clients describe the FMCG business. Companies with a based
supply chain gadget will do nicely. However, it will be hard for organizations with poorly
controlled supplier networks to exist in this aggressive marketplace. But, within the FMCG
income system, there are numerous enormous obstacles. As an example, the sector of home
items has declined by using monetary enjoy the sixth most significant industry at the start of the
century to the tenth.

For a FMCG business to become successful in their marketing process, it needs a shipping and
logistics department that can handle large quantities and quick turnover times with distributors.
chain capable of continuous adaptability. The difference in the roles of the delivery chain
determines income and income for the company in a certain way. Over time, many modifications
were made to the supply chain manner, making matters less difficult yet at the identical time
complex.

The activity is less challenging to devise. The projection of the transferring call is
straightforward with this facility. Ought to the manager optimize the timetable, the allotted
project can be done using the sphere management system readily.

This requirement is used for the evaluation of field sales performance using information
produced by the field sales management software. In addition to the statistics, the income force is
able to acquire with the help of every employee at every level of their educational achievement.

Professionals working within the area are continually strolling. Even as each company desires to
do its first-rate for its employees, not everyone in this fight can survive identically. However,
efficient use of software programs for area income control may assist boom sales.

Conclusion

In order to empower employees, many different tools are available for income management in
the field. The most prominent process in income groups is the development of complicated
portfolios. There is consequently a need for sales representatives to spend time connecting with
leads and presenting their views. Therefore, an FMCG firm wishes to have consumer facts to
tailor its offerings. This evaluation presents records on the cross-sale capacity that could offer
salespeople new possibilities. The strategy also contributes to patron retention. The effect of
FMCG income on customers is growing as the breadth of subject software is rising. Groups
inside the FMCG industry plan their income the usage of custom-designed purchaser target
models beneath their necessities and insights from analytics. With the new, swiftly changing
customer products sector, the function of such software program will be increasingly more vital.
In addition, salespeople want to offer their customers extra prominently with a well-advanced
plan. All the following factors play a critical position in aggregate with diverse varieties of
necessities.
Q3. Read the case ‘Levis India offers – Jeans on EMI’ and respond to these questions.
While answering questions you are free to make reasonable assumptions. Please state them
clearly

In June 2009, apparel manufacturer, Levis’ Strauss India Pvt Ltd offered to sell its well-
known Levi’s jeans and other Levi’s products on equated monthly installments (EMI)
payable through credit cards. Analysts viewed this as a bid by the company to increase
sales against the backdrop of the economic downturn. The company planned to arrest its
decline in sales through this innovative offer. Analysts felt that the offer was the first such
in the branded apparel industry. On the launch of the scheme, Shumone Chatterjee. MD,
Levi’s said – “it is for the first time that a brand is offering this kind of deal in India. EMI
has proven good for several industries such as housing and white goods; therefore, I feel it
will make a significant difference to the branded apparel industry as well”.

The offer, launched as a pilot program, in Bangalore, was valid only for consumers who
purchased products worth Rs 1500 and above. The consumers had to settle the bill in three
instalments. The EMI’s were zero percent interest. Levi’s had entered a tie-up with ICICI
Bank to offer this scheme. In return, the bank received service charges from Levi’s for
each transaction.

Levi’s is the Indian subsidiary of US based Levi Strauss and Co. It sells denims jeans under
the brand Levi’s, a popular and aspirations brand of jeans in India. As of September

2009, Levi’s operated through 230 stores and 500 points of sales in nearly 200 cities.
By launching the offer, the company planned to make the jeans affordable to consumers
who aspired to own the brand. Chatterjee added, “Many aspire to own a Levi’s but the
price can be a barrier. The EMI scheme makes it easier for the people to build the
wardrobe with a premium brand like ours. The company felt that it could make customers
spend more by easily making payments through installments. “the idea is to not only
achieve high conversion rate (walk-in’s conversion into spending) but also enable our
consumers to spend more and purchase higher-end denim through an easy mode of
payment. If the EMI scheme works well in Bangalore, then we can unveil this nationally in
a couple of months”.

The company received a good response from customers. “ever since we introduced the ‘buy
now, pay later’ scheme with interest of hidden charges in June, our sales have surged by
10-15 percent” said Mr. M Aaron, franchise manager, Levi’s. From June 2009 to August
2009, almost half the buyers who had an ICICI card used the EMI facility. “The average
value of their purchase was 50% higher than those who didn’t use the EMI facility” added
Chatterjee.

Encouraged by the response received by the scheme, the company announced its plan to
roll out the offer in eight cities other than Bangalore by mid-September 2009. These cities
were Pune, Delhi, Ahmedabad, Chennai, Hyderabad, Kolkata, Mumbai and Chandigarh.
The success of the program, prompted Levi’s to enter into tie-ups with other private banks
such as HDFC Bank and Axis Bank. He criteria for usage of Axis Bank credit cards was
that the bill amount had to be Rs 5000 and above.

Some analysts felt that it was logical for the Levi’s to offer the scheme through credit cards
since there was tremendous potential to be tapped in the Indian market, but they noted
that the number of credit card holders in India was less than that of developed countries.
According to a report by BankRate.com, only 28% of affluent Indians have credit cards, a
fraction of the average around the world. As of 2006, credit cards accounted for just 1%
of all purchased in India – one of the lowest percentages in the world
The offer launched by Levi’s received a mixed response from Industry observers,
customers and analysts. Customers appreciated the scheme offered by Levi’s. According to
Roger, a customer, “it helps the consumers and the companies too. Recession has affected
both the companies and the consumers, so it’s a win-win situation for both of them,”.
However, the company maintained that the promotional technique was not a strategy to
counter the effects of the economic downturn. The company said that it was aimed to tap
the tremendous market potential offered by the organized retail market in India. As of
August 2009, the Indian organized retail market was just 4-5 percent, out of which 20%
accounted for apparel and lifestyle, thus offering scope for growth, according to Levi’s.

According to Sanjay Lalbhai, CMD of Arvind Mills Ltd, “we have never offered such
schemes and I don’t think it has been tried anywhere in the world, unless you have a very
loyal customer base and are sure of their credit worthiness. It will be interesting to observe
how they are doing it”. On the other hand, some experts felt that though this scheme might
attract the masses to Levi’s initially, in the long run, it might lose some premium customers
since the branded products would be affordable to most other sections of society.

a. Critically analyze Levi’s offer to sell its Levi’s brand of jeans and other products on EMI
(5 Marks)

b. What was the overall objective of this plan? Do you think the company will succeed? (5
Marks)

Ans 3a)

Introduction 
A bright marketing technique was chosen last year by Levi Strauss Pvt Ltd, an America-based
company that produces accessories clothing for customers shopping for jeans and other gadgets.
There are few strategies that have worked as well as Levi's gimmick marketing. There are a lot of
credit card customers who favour its plans that combine HDFC Bank and Axis Bank Ltd
together.

Concept and application

As a clothing manufacturer, Levi's Strauss India Pvt. Ltd., (Levi's) presented a clothing
manufacturer in June 2009 to promote its well-known Levi denim brand and other gadgets at the
same time paying monthly installments (EMIs). Levi's jeans officials believed it'd improve sales
within the face of the catastrophic collapse within the financial system. With this special offer,
they aim to forestall its fall in income. The deal added in Bangalore as check software turned into
best applicable for customers who bought Rs 1500 and more excellent. Three payments have
been required for clients to clear the price. The interest of the EMI becomes zero percentage. To
offer this plan, Levi has entered a link to ICICI bank. The bank got carrier charges for every
transaction from Levi's in to go back.

Levi's is Levi Strauss and Co, a U.S. Indian subsidiary. It offers pants below Levi's, a famous
well brand of denim in India with high goals. Levi's operated in around 200 places in September
2009 with 230 stores and 500 income shops. The firm plans to make the types of denim
accessible to customers who want to be the brand owner by releasing the provide. There are a
variety of human beings that want a Levi, but the rate is probably a hurdle. The EMI machine
enables the construction of a cloakroom with a high-quality logo like ours. The company concept
that clients might spend extra with the aid of paying installments truly. No longer only is it an
idea to get a high charge of conversion. However, it also allows customers to spend more and to
shop for more give up-to-quit jeans easily. If the EMI device works efficiently in Bangalore in
some months, it can be found out nationally. Clients have given the company a positive reply.
Nearly half of clients using an ICICI card used the EMI carrier from June 2009 to August 2009.
The average buy fee changed into 50 percent greater than the ones without EMI.

Conclusion

By looking at industry watchers, clients, and analysts with contrasting reactions, Levi's is able to
provide added value. As stated above, the method Levi's used to manage customer service was
praised mainly among customers, as well as consumers and businesses. Businesses and buyers
have been injured by the recession, which, therefore, has created a win-win situation for both
sides.

Ans 3b)

Introduction

Several hundred Levi stores will open the EMI carrier through mid-September in the most
competitive 9 markets in India, adding more than 130 exclusive Levi stores to the list. It is very
important that these cities in general, Delhi-NCR, Mumbai, Bangalore, Ahmedabad, Chandigarh,
Chennai, Kolkata, Hyderabad, and Pune, be on the list of cities where this selection must be
available.

Concept and application

By implementing such a task, customers of the company in the United States can keep in touch
with each other more seamlessly by providing them access to the best jeans manufacturer of the
sector. This introduces the brand to many who already recognize Levi's and need it to be but
haven't any access to it. At the same time as rejecting proposals to mitigate the effect of a
recession, the advertising and marketing approach is a strategy. Only 20% of the organized retail
enterprise in India is within the discipline of apparel and enjoyment, which offers enormous
development possibilities. The company tested the gadget experimentally in advance to check
the waters before being released throughout Canada. This initiative was added in June this year
in Bangalore, where it has been very successful and has brought about urgent national growth.
Clients and retailers had excellent high comments.

Clients have given the company a good reply. 'Since the 'buy now, pay later' application was
carried out in June with interest from hidden charges, sales rose by 10-15%. Almost half of the
customers using an ICICI card used the EMI carrier from June 2009 to August 2009. The
standard buy price turned into 50 percent extra than those without EMI. But, the firm stated that
the promotional approach changed into now not a plan to mitigate the effects of the downturn.
The business said it desired to leverage the tremendous marketability that the organized retail
enterprise in India gives. By using August 2009, the Indian retail marketplace prepared changed
into slightly 4-5%, of which, in keeping with Levi's record, 20% turned into for apparel and life.
Levi has grown to be one of the topmost brands in clothing production so that middle-class
individuals, who need to put on manufacturers inclusive of Levis, can also collect their apparel
on an EMI foundation. The dealer is a valuable resource dealer to fabricate services and
products. Levi's suppliers are now outfitted with a new facts control device, enabling Levi's
providers to collect music and optimize records accumulating efforts even as entirely operating.

Conclusion

The majority of observers believed that it was alright because Levi offered the credit card
program for the reason that the Indian market would be able to get substantial benefits from this;
however, it turned out that India had a lower percentage of credit cards holders than
industrialized nations. Bringing Levi's brand to a lot of people that are already familiar and have
already chosen Levi's for years but have no access to the brand.