Sales planning and operations - Essay Example

?Sales Planning and Operations Table of Contents Table of Contents 2 Task 3 3 Learning Outcome (a) 3 Learning Outcome (b) 6 Learning Outcome (c) 7 Merit Descriptor 8 Distinction Descriptor 8 Learning Outcome (d) 9 Task 4 10 Learning Outcome (a) 10 Learning Outcome (b) 13 Task 4 (Continued) 15 Learning Outcome (c) 15 Distinction Descriptor 16 References 18 Task 3 Learning Outcome (a) Sales can be stated as the lifeblood of a business. Earning sustained profitability is the basic aim of conducting sales activities in an organisation. In order to boost up the sales of LPPT Cola in the market, the corporation needs to identify the target market for their offered products. Subsequently, after recognising premium target consumer segment of the products which can facilitate to increase the sales of the company in the long run, the organization needs to make a comprehensive market analysis to recognise the specific requirement trends of the customers from the offered product (Treace, 2013). In the following step, LPPT Cola needs to make an outline of their sales plan. The company needs to study its targeted market thoroughly and consequently it needs to analyse the sales objectives as well as the requirement of manpower to reach the end-users (IILM, n.d.). As a Sales Director, there is a need to have a directional plan in place for the entire sales team at the outset. Moreover, a contingency plan also needs to be prepared so that any untoward scenario in terms of unavailability of a sales team member is handled efficiently. At the same time, if the Sales Director of LPPT Cola finds it to be necessary, he can even interact with the concerned authorities of the same industry, which will help him to advise the marketing manager to sketch a detailed structure of the plan (The Sales Management Association, 2013). After the determination of the targeted market and sketching the sales plan, the next process will be the creating a network or connectivity. To make the consumers aware of the products of LPPT Cola, at the initial stage, the organization can take the aid of strategies such as telemarketing, e-mailing and door-to-door selling among others. In terms of pricing of the products, it is essential to prepare a competitive pricing to mitigate the threat of substitute products. With regard to the sales force, LPPT Cola needs to inculcate the strategy of planning, coordination, controlling and motivating to ensure that customers are offered with best possible service. This strategy can ensure a sustained profitability from sales activities in the long run (Kundu, n.d). Structure of the Sales Department Learning Outcome (b) Business objectives are the aims, purposes and goals of the business. The significant role of business is to achieve its goals. The main objective of the business is to maximize its profitability. Operating business cannot have only one objective because a company needs to meet the demands of different stakeholders such as employees, consumers, creditors and shareholders among others. In terms of the stages or processes involved in an organisational sales strategy, it can be said that the primary facets involve: Preparing sales objectives Studying sales market environment Recognising the various alternatives available Assessing the alternatives and selecting the best possible one for the organisation Preparing sales budget and forecast Formulating sales plan and gaining approval of the management Executing the sales plan with the help of appropriate human resource allocation Making an evaluation and review of the sales plan Source: (Trehan & Trehan, n.d.) There are four basic sales strategies such as account targeting, sales channel, selling and relationship, the categorization of these accounts within a targeted market for incorporating strategic approaches in the sales, through accounting groups or accounting. An organized selling procedure for each accounting targeting, sales channel, relationship and selling strategy develops effective and efficient selling procedure which is a significant in sales management mission. Corporate sales channel includes industrial distribution, team selling, trade shows, independent representatives and internet (Kaplan & Norton, n.d.). Organisational strategic sales management provides a vast in-depth assessment of an organisation’s strategic sales plans that include the sales force, organizational relationship and their customers. In order to have an effective sales execution an organization needs to have an innovative sales strategy as compared to its competitors to occupy a good place in the market, at the same time it will help to boot up the sales. Thus, fulfilment of corporate strategies is largely executed by well-prepared sales related business objectives. Learning Outcome (c) In the present dynamic world with competitive market place, human resources play a significant role in an organisation for accomplishing the organisational objectives. Through the process of recruitment any organisation can effectively create a dedicated sales team by selecting efficient employees. However, in order to acquire an effective outcome, organisations need to train the recruited employees in such a way so that they can help to accomplish the goals in an effective and efficient way. In the present competitive market, organisations are facing rapid competition and they need to deal with several commercial issues in order to survive in the market. In this context, it can be stated that the recruitment process can affect the organisational working system such as performance management, organisational design, public relations and communication among others. Recruitment seems to provide certain influences with respect to staffing related strategies which can impact on the working culture of an organisation. Due to this reason, recruitment procedure must be integrated with an organisation’s business strategies, by considering the effective usage of the information technology. With better recruitment process, organisations can effectively be capable of managing the talents. Moreover, a dedicated sales team in the long run can facilitate to ensure that the organisation is focused on attaining greater growth and profitability. It can help to enhance competitive advantage of an organisation as a dedicated sales team can at all the time ensure customer satisfaction which in turn can ascertain strategic advantage (Kalyani & Sahoo, 2011). Merit Descriptor An effective recruitment and selection helps an organization to achieve its aims and goals both effectively and efficiently. However, in order to make recruitment process effective, the organisation must concentrate on certain skills or traits which are required for performing specific jobs (Richardson, 2013). Identification of the required potential skills, from the human resource pool is imperative to meet increasing competition within the global market. The specific skills which are required for the selection or recruitment of effective sales team includes listening skill, communication skill, customer relationship management skill and interpersonal skill (Slideshare, 2013) Finding the appropriate employees with requisite skills set is a tedious procedure. Since organisations have several requirements from employees, they can use various alternative staffing options such as provisional staffing, perpetual staffing, campus internship, employment agencies and employee appointments among others. The selection of staffing options is subject to organisational objectives (The Call Center School, LLC, n.d.). Distinction Descriptor An organization needs to retain the talented employees in order to stay competitive. The most common way to ascertain employee retention is to lessen the employee turnover rate in the place of work. The other way to improve employee retention is to offer competitive compensation. The compensation is considered as one of the vital deciding factors for an employee to stay in an organisation (HR Council for the Nonprofit Sector, 2004) Making sustained investments on employee development can prove to be useful for retention of employees as it can help to build confidence of each employee. It also helps to augment the employee morale, which in return can facilitate to decrease employee turnover within the operating environment. It will also help to increase the productivity of the organisation (Johnson & Grad, n.d.). Learning Outcome (d) Motivation helps to enhance the determination of employees to enhance their productivity and performance in an organisation. Lack of motivation can hinder the learning and growth of an employee. If any organisation keeps motivating the employees’ it will help to increase their activity and energy level, which in turn would facilitate to achieve both the short-term and the long-term goals. Motivation can fill the gap between the willingness and the ability of an employee. As a result, it helps to increase the productivity, and ultimately results in employee contentment as well as employee retention (Johnson & Grad, n.d.). There are numerous reasons for which an employee chooses to resign from an organization, but it is not necessary that the salary structure or remuneration be the basic reason. Although only low remuneration cannot cause resignation of an employee but it can help to make employees motivated to enhance their performance. In other words, employees can be contended or retained by different factors. Providing efficient training to employees along with offering competitive remuneration in sales management can play an important role in enhancing their motivation as it can help to build extrinsic motivation level of the employees. Thus, it is beneficial for organisations to recognise the factors which can help to retain the employees in an organisation by making them satisfied (Johnson & Grad, n.d.). Task 4 Learning Outcome (a) Components Interpretation Markets and marketing The market of Kellogg’s is mainly targeted to those people who are highly conscious towards health. The marketing for Kellogg’s products can be done through retail selling and door- to-door selling method. Assumptions The major assumption of marketing strategies for Kellogg’s is that the products can be consumed by every group of people particularly by women and kids. Besides, there are no side effects on health due to the consumption of Kellogg’s products which can help to generate better customer base. Sales history The sales history of Kellogg’s products from 2006 to 2011 is as follows: 2011- US$ 13,198m 2010- US$ 12,397m 2009- US$ 12,575m 2008-US$ 12,822m 2007- US$ 11,776m 2006- US$ 10,907m (Kellogg Company, 2011) Sales forecasts The sales forecast for Kellogg’s products for four upcoming years is as follows: 2013- 4% increase in sales 2014- 5% increase in sales 2015- 6% increase in sales Sales targets The expected sales target for Kellogg’s is to enhance the sales of the products by 4% to 5 % during the first consecutive year and to continue a stable sales growth. Strategies, tactics and measures of achievement The following strategies would help to accomplish the sales objectives of Kellogg’s: Implementation of product innovation Making the best use of the advertisement tools Utilisation of competitive pricing strategy Keeping up-to-date with the latest marketing trends Action plan The action plan for developing and implementing sales strategies for Kellogg’s are as follows: Identification of sales opportunities Clarification of sales objectives Determination of marketing mix elements Specification of different marketing activities Budget allocation Kellogg’s can allocate about 10% of its revenue to marketing. The budget of sales activities are divided into two categories which are brand improvement expenses and expenses for product promotion. Competitor analysis From the analysis of competitors of Kellogg’s, it can be observed that: There are several large players who have leading positions in the food processing industrial segment The market is highly oligopoly in nature The competition is strong Market growth rate is constant Sales channel Kellogg’s can use both direct and indirect sales channels in order to sale its product. In direct sales channel, Kellogg’s can directly market the product through retail chain. Besides, Kellogg’s can also use indirect sales channel to market the product by involving wholesalers. Learning Outcome (b) Appointment of Local Sales Agents Vs. Direct Selling Approach Local Sales Agents Direct Selling Approach Local sales agent deals in selling products in the local area though retail chain Direct selling approach deals in selling products by door-to-door sales method In this method, there is no requirement to store the products in local warehouse In this method, there is a need for storing the products for sales In this method, communication occurs with the manufacturers through timely reports In this method, communication occurs with the end customers Performance is based on the terms and conditions of the national sales agent agreement contract Performance is based on the consumer reaction about products offerings Transportation and Logistics Concerns There are several transportation and logistics aspects which must be considered in overseas selling such as: Evaluation of transportation cost Selection of proper transportation modes Control over warehouse management system Observation of the product delivery system After Sales and Aftermarket Product(S) and Services Aftersales and aftermarket services are used by a majority of organisations in present days. Aftersales and aftermarket services provide unique opportunities to organisations for delivering values in today’s fluctuating economy. In overseas sales, the following aftersales and aftermarket services would be beneficial such as: Using different test mechanisms before supplying the product to the targeted group of people Providing money back grantee service in case of faulty products Engaging in constant communication with the customer in order to acquire feedbacks for improvement Customer Care and/Or Support Services Customer care and support incorporates a variety of facilities for helping customers regarding the utilisation of product. Customer support can be offered through: Providing proper guidelines to the customers regarding product usage Providing relevant solutions to their problems regarding the product and, By taking feedbacks from customers about the type of services they require Competitors Market Sales Share and Beauty and Super-Beauty Products Potential Buyers In order to sell product in the overseas market, it is required for recognising the market share of competitors along with the potential buyers of the product. Thus, in order to sell the beauty products in the market of the United Kingdom, it is recommended for Beauty and Super-Beauty plc to: Stay up-to-date about the competitors’ pricing strategy Identify the targeted customer group Monitor the schemes provided by the competitors to their consumers Recognise the purchasing patterns of customers for beauty products Organisation of Direct Sales Promotional Programs at Various Locations Direct selling is considered as one of the major elements of product promotion. It is a tailored approach for involving with the customers and is quite a useful marketing technique for beauty products. Thus, for selling the products in the overseas markets, Beauty and Super-Beauty plc can utilise direct selling approach. The organisation can organise road shows to make people aware about the products. It can even offer live demonstrations of its products in the marketplace. Furthermore, Beauty and Super-Beauty plc can also go for door-to-door selling and make people aware about the products (Singh, n.d.). After-Sales Retention of Customers and Staff A successful business depends on effective retention of customers and staffs in an organisation. Thus, in order to retain them, organisations must take approaches to make them satisfied. If the consumers are satisfied with the products then there is a high probability that they will make repeat purchases. On the other hand, if the employees are satisfied, they will stay with the organisation in the long run. Thus, in order to satisfy them, Beauty and Super-Beauty plc should resolve any kind of problems of customers as well as employees, stay in touch with the most profitable customers, request for referrals and provide facilities for motivating employees. Task 4 (Continued) Learning Outcome (c) The objectives of using exhibition or trade fairs are to target definite groups of target audience. Trade shows are generally targeted at the audience who are interested to purchase certain products. Exhibitions are organised in the trade shows which can be a great way of marketing a product to a segmented market. It helps to create brand awareness. Thus, in order to exploit sales opportunity, an organisation needs define a target audience for that particular trade show (MFV Expositions, 2006). Trade shows or fairs provide a perfect platform to promote the desired products or services to a large group of customers, which helps to generate knowledge about the product in the minds of the customers. Trade fairs allow two-way communication between the present or potential buyers with the business which can be highly beneficial for organisations to make sales. In the context of demonstrating the offered products or services, it allows an organisation to better position itself among other potential competitors. Exhibitions also facilitate to promote cultural exchanges and ensure better communications between different communities which can also help to generate opportunities for an organisation to market the products to the potential target customers (MFV Expositions, 2006). Distinction Descriptor A few of the prominent trade fairs around the world are ‘East China Fair’, ‘2013 Fashion Access’, and ‘2013 Pure London’ among others (GlobalMarket Group, 2013). In order to be a part of the trade fairs, it is essential to have accurate preparation and planning. It requires significant investments of time and money. The following activities will help to prepare to participate in trade fairs/trade exhibitions: Planning For Product Display - The display of the products and the services must be attractive so that it can make the commercial customers to place orders at the first sight (MFV Expositions, 2006). Preparation Of The Budget- The budget for participating in the trade fairs must be affordable (MFV Expositions, 2006). Setting Objectives- In order to make the participation in trade fairs a success, clear and specific objectives must be set in the most cost effective manner (MFV Expositions, 2006). Better Selection of Trade Fairs- Every year numerous trade shows are organised throughout the world. Thus, it is beneficial for an organisation to decide which trade fairs will be the best ones for its products or services to target the market (MFV Expositions, 2006). Preparation and Planning- In order to achieve the objectives, an organisation needs to develop a cohesive plan for demonstrating its product lines and services (MFV Expositions, 2006). Follow-up Procedure- After completion of trade fairs, organisations need to acknowledge people for visiting their booth. As a part of follow up procedure, organisations can provide the audience with brochures, samples and price lists of different products. This is a vital stage to build the company’s reputation as a suitable supplier. At the same time, organisations need to invite the audience and the buyers for attending the next trade fairs (MFV Expositions, 2006). References GlobalMarket Group, 2013. Upcoming Exhibition. GMC Exhibition Schedule. [Online] Available at: http://www.globalmarket.com/exhibition/upcoming.html [Accessed February 04, 2013]. HR Council for the Nonprofit Sector, 2004. HR Planning Succession Planning. Developing a succession plan for the executive director. [Online] Available at: http://hrcouncil.ca/hr-toolkit/planning-succession.cfm [Accessed February 04, 2013]. IILM, No Date. Sales Management. Marketing Approaches. [Online] Available at: http://www.iilm.edu/iilm-online/Sales%20Management%20Self-Learning%20Manual.pdf [Accessed February 04, 2013]. Johnson, J. L & Grad, D., No Date. 5 Simple Ways to improve Staff Retention. Check the motivation of your staff and the skills of your leaders. [Online] Available at: http://www.aspectcoaching.com/pdfs/5_proven_ways_to_improve_Staff_Retention.pdf [Accessed February 04, 2013]. Kaplan, S. R. & Norton, P. D., No Date. Linking The Balance Scored Of Strategy. Customer. [Online] Available at: http://xa.yimg.com/kq/groups/23484324/2012169140/name/BSC+to+Strategy.pdf [Accessed February 04, 2013]. Kellogg Company, 2011. Annual Report. Files. [Online] Available at: http://investor.kelloggs.com/files/doc_financials/annual_reports/KELLOGG_11AR.pdf [Accessed February 04, 2013]. Kalyani, M. & Sahoo, M. P., 2011. Human Resource Strategy: A Tool of Managing Change for Organizational Excellence. International Journal of Business and Management, Vol. 6, No. 8, pp. 280-286. Kundu, S. S., No Date. Sales Management: An Overview. Study Material. [Online] Available at: http://www.ddegjust.ac.in/studymaterial/mba/mm-308.pdf [Accessed February 04, 2013]. MFV Expositions, 2006. Tradeshow Marketing Manual. West Coast Franchise Expo. [Online] Available at: http://www.wcfexpo.com/pdf/tsmm2.pdf [Accessed February 04, 2013]. Richardson, A. M., 2013. Recruitment Strategies. Managing/Effecting the Recruitment Process. [Online] Available at: http://unpan1.un.org/intradoc/groups/public/documents/un/unpan021814.pdf [Accessed February 04, 2013]. Slideshare, 2013. Recruitment, Selection Process Methods and Steps. Use of Physological test in selection. [Online] Available at: http://www.slideshare.net/234rashmi/recruitment-selectionprocessmethodsandsteps12078972527841979 [Accessed February 04, 2013]. Singh, M. R. P., No Date. Basic Principles of Marketing and Management. Study Material. [Online] Available at: http://www.ddegjust.ac.in/studymaterial/pgdapr/pgdapr-105.pdf [Accessed February 04, 2013]. Trehan, M. & Trehan, R., No Date. Advertising and Sales Management. FK Publications. The Call Center School, LLC, No Date. A Practical Guide to Seasonal Staffing Alternatives. Images. [Online] Available at: http://www.callcentrehelper.com/images/a-practical-guide-to-seasonal-staffing-alternatives.pdf [Accessed February 04, 2013]. The Sales Management Association, 2013. The Role of Top Management in Developing a Customer-Oriented Sales Force. Recall Case Study on Virtual Sales Coaching. [Online] Available at: http://salesmanagement.org/resources/single-article/the-role-of-top-management-in-developing-a-customer-oriented-sales-force [Accessed February 04, 2013]. Treace, J., 2013. 5 Tips for Training New Salespeople. Sales and Marketing. [Online] Available at: http://www.inc.com/john-treace/5-tips-for-training-new-salespeople.html [Accessed February 04, 2013]. Read More