Annexure-V- Cover Page for Academic Tasks

Course Code: MKT 352 Course Title: Selling and Sales Management

Course Instructor: Dr Veer P Gangwar

Academic Task No.: 01 Academic Task Title: Optima Growth

Date of Allotment: 16/08/2020 Date of submission: 31/08/2020

Student’s Roll no: A051 Student’s Reg. no: 11814320

Evaluation Parameters: (Parameters on which student is to be evaluated- To be mentioned by

students as specified at the time of assigning the task by the instructor)

Learning Outcomes
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We declare that this Assignment is our work. We have not copied it from any other
student’s work or from any other source except where due acknowledgement is made
explicitly in the text, nor has any part been written for me by any other person.
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 Selling and Sales Management
MKT 251
Submitted by:

ADITYA KUMAR SINGH

Registration no.: 11814320
In partial fulfillment for the requirements of the award of the degree
of

BACHELOR OF BUSINESS ADMINISTRATION

“Mittal School of Business”

LOVELY PROFESSIONAL UNIVERSITY

Phagwara, Punjab.

OPTIMA GROWTH
 INTRODUCTION

It is a personal or institutional investment made into early-stage / start-up

companies (new ventures). As defined, ventures involve risk (having uncertain
outcome) within the expectation of a sizeable gain. working capital is money
invested in businesses that are small; or exist only as an initiative, but have huge
potential to grow. The those who invest this money are called venture capitalists
(VCs). The capital investment is created when a plunger buys shares of such a
corporation and becomes a financial partner within the business.
Venture Capital investment is additionally observed capital or
patient capital, because it includes the chance of losing the cash if the venture
doesn’t succeed and takes medium to future period for the investments to
fructify.

Venture Capital typically comes from institutional investors and high net worth
individuals and is pooled together by dedicated investment firms.
It is the cash provided by an outdoor investor to finance a replacement,
growing, or troubled business. The speculator provides the funding knowing
that there’s a major risk related to the company’s future profits and income.
Capital is invested in exchange for an equity stake within the business instead
of given as a loan.
Venture Capital is that the most fitted option for funding a costly capital source
for companies and most for businesses having large up-front capital
requirements which haven't any other cheap alternatives. Software and
other belongings are generally the foremost common cases whose value is
unproven. that's why; working capital funding is most widespread within
the fast-growing technology and biotechnology fields.

A working capital company is defined as a financing institution which joins an

entrepreneur as a co-promoter in a very project and shares the risks and rewards
of the enterprise. During this case as "venture capitalists"
or "Venture Capitalists") are the executives within the firm, in other words the
investment professionals. Typical career backgrounds vary, but many are
former
chief executives at firms like those which the partnership finances and other
senior executives in technology companies.
The term risk capital denotes institutional investors that provide equity
financing to young businesses and play a full of life role advising their
managements.

PROBLEMS
There are basically four major elements in financing of
ventures which are studied exhaustive by the venture
capitalists. These are as under:

1.Top Management: The strength, expertise & unity of

the key people on the board bring significant credibility
to the corporate or enterprise. The members are to be
mature, experienced having working knowledge of
business and capable of taking potentially high risks
against high return on venture investment.

2.Realistic Financial Requirement and Projections: The

venture capitalist requires a practical view about the
present financial position of the organization still as
future projections regarding scope, nature and
performance of the corporate in terms of scale of
operations, operating profit and further costs associated with
product development through Research &
Development.

3.Expectation for Capital Gain: An above average rate of

return of about 30% to 40% is required by venture
capitalists. the speed of return also depends upon the
stage of the trade cycle where funds are being
deployed. Earlier the stage, higher is that the risk and hence
the return thereon.

4.Owner’s Finance: The financial resources owned &

committed by the entrepreneur/ owner within the business
including the funds invested by family, friends and
relatives play a really important role in increasing the
viability of the business. it's a vital avenue where the speculator keeps an open
eye.

Venture Capital Financing is in its abortive stages in India.

The emerging global competitiveness has put an immense
pressure on the economic sector to boost the standard level
with minimization of cost of products by making use of
latest and advanced technology. The implication is to get
adequate financing together with the required hi-tech
equipment’s to supply an innovative product which may
succeed and grow within the present market condition.
Unfortunately, India lacks on both fronts. the specified
capital will be obtained from the risk capital firms who
expect high and risky rate of return on the investment.

SALES PLAN
1. Self-Service and Digitization
Where baby boomers and former generations largely preferred to receive
products through sales representatives who could advise them
and founded personalized (or not) accounts for them, millennials and
Generation Z often want to try to to everything themselves with as little contact
with human representatives as possible. putting in and promoting digitized
products and customer service or experience portals that enable customers
to join up for services online, change products and services online, and look
at their information without going into a branch is an efficient and increasingly
necessary trend for financial organizations. However, it's not a marketing
strategy that applies to each organization, as you will not sell products only
services.

2. Social Media
81% of the us population is on a social media account and lots of use social for
up to 4-5 hours per day. Your smart and consistent use of 1 or more social
media platforms could be a valuable financial marketing strategy that you
just cannot afford to ignore. Millennials, Generation Z, and even Baby Boomers
use social media platforms to attach with brands, learn from peers, and follow
current events and news. Maintaining a gentle presence on one or more sites
with a technique in situ to supply value to followers will facilitate you to
create brand trust, create marketing opportunities, and grow your customer base.

Build trust. Millennials want to try to to business with financial companies

they trust. Trust comes from establishing a stimulating company culture,
building digital experiences adolescents will use and getting endorsements from
well-known celebrities.

Relate to your audience. kids engaging with financial companies are trying

to find three simple things: exceptional digital experiences, rewards and
convenience. Your marketing message must address these simple needs head
on.
Experiment with influencers. When 71% of individuals would rather head to the
dentist instead of hearing what financial service companies should tell them,
you don’t blame the dentist - but the messenger. Work with influencers to
succeed in new audiences and make your brand cool.

Use content to coach. From educational Alexa skills to amazingly

actionable blog posts, the financial industry is slowly learning to use content to
draw in and retain customers.

Optimize your workflow copy. Optimize your current digital workflows,

web copy and content assets. Most customers know lots less about your
products than you think that they are doing.

RECOMMENDATION

Reject generic growth models as proof a company’s growth potential: - The

study found that firm growth doesn't always follow the standard J-curve or
exponential growth model, which VC firms often use to make a
decision whether or to not invest in an exceedingly company. Committees that
decide which companies to take a position in should use caution of claims
that an organization will follow a standard growth trajectory. The graphic below
shows the little percentage of firms that successfully hit the golden “J
curve” within the Kauffman Foundation’s portfolio.

Create more transparency in Venture Capital firms: - Limited partners are

often unable to access enough information about the VC firms and general
partners so as to form an informed decision about whether or not they ought
to invest. Increasing limited partners’ access to information can help them make
more educated decisions on which firms to back so as to cut back risk.

Remove Venture Capital Mandates: - Requirements by funds into how VCs

invest should be removed because they are doing not increase returns. The
report found that it's only financially responsible to take a position within
the top-performing VC funds.

Acquire performance, not percentage of ownership: - Currently, VCs are

paid more after they raise large funds thanks to the 2 percent management
fee and also the percent percentage model that's the VC market standard. The
market standards allow VCs to lock in high returns no matter the individual
company’s performance. If limited partners negotiated a compensation structure
where they pay general partners for his or her performance rather than accepting
a market standard, which doesn't encourage good performance, there would be
more incentive to decide on less risky companies.

Use Public Market Equivalent (PME) to benchmark Venture Capital fund

performance: - VC funds should chart firms’ performance by comparing the
cash flows to comparable indexes of publicly traded stocks in similar industries.
Using PME to assess VC firms would force consultants and investment staff
to depend upon metrics aside from gross returns and internal rates of return that
fluctuate rapidly.

SALES CHANNEL STRATEGY

Build Credibility with Articles

Blog and bylined articles are an excellent thanks to showcase a capital firm’s

founders or partners’ expertise. But to create credibility with content effectively,
VCs must have a transparent understanding of their target market. Every article
should add value to readers in a way. It’s also essential for VCs to differentiate
themselves to square out. What can they invite that other VCs cannot? The
competition is stiff. VCs must come up with a singular angle to grab the eye of
startups, new partners, co-investors, and therefore the community.

Engage with Video Content

By 2019, 80% of worldwide Internet consumption are video content. VC firms

should consider incorporating video in their content marketing. Live streaming
videos like a question-and-answer session or an interview with an industry
expert, mentor, or portfolio startup is a fascinating way for VCs to demonstrate
their expertise.

VCs also can create educational videos. Y Combinator, as an example, achieved

success with its “How to start out a Startup” series of video lectures that
the fund initially gave at Stanford University. These videos are popular among
entrepreneurs searching for advice on a way to get their startup off the bottom.
VCs can live stream video through social media channels. VCs can use
platforms like Facebook or LinkedIn, and archive the video content on their
websites and YouTube channels.

Increase Reach With podcasts

Podcasts are an increasingly popular way for brands to succeed in the ears of
their audiences and potential customers. In 2018, 48 million people listened to
podcasts, which is up six million from 2017. VCs can use podcasts to share
stories best suited to audio, and startups and potential partners can hear them
anywhere and at any time.

Content Marketing Benefits transcend the Firm

Content marketing not only benefits venture capitalists; it benefits the

businesses that VC firms invest in furthermore. VCs that make articles,
interviews, or podcast episodes featuring their portfolio company founders help
those companies increase their brand awareness, build credibility, and
find ahead of more (and larger) investors or partners. Startups don’t always
have updates or announcements to share, so featuring the founders helps keep
them within the news. When VCs feature their portfolio company founders,
both parties’ benefit.
 CONCLUSION
The world markets are getting more and more
competitive. Companies are required to be super-efficient
with reference to cost, productivity, labor efficiency,
technical skills, varied consumer demand, adaptability and
foresightedness to urge competitive edge over the rival firms.
There is an imminent demand for highly cost effective,
quality products so, the necessity for right access to valuable
human capital to guide and monitor together with the
necessary funds for financing the new projects. Today India
is promoting capital financing to new projects.

The world of finance has always had an intuitive understanding of risk. Risk
management may be a systematic way of protecting the concern ‘s resources and
income against losses in order that the aims of the business is achieved without
interruption. Risk Management is that the process accustomed systematically
manage exposures to risk. The risk management approach encourages
management to place exposures to loss in an exceedingly
broad perspective, during which insurance is simply one in every of the several
possible solutions to the problem. Risk Management is best used as
a defence instead of as a reactive measure.