Est1 Task 3

MAPS Associate’s Degree in BM/HRM / Accounting / Marketing Management)

BTEC HND in Business (Management / HR / Accounting / Marketing)

Assignment Front Sheet Learner name Learner ID Card Number Mohamed NizamAssessor Name Date Issued Date due Submitted on 4 April 2017 Task 1 and 2: 29 April 2017 Qualification Unit number and title MAPS Associate’s Degree in BM/HRM/Accounting/Marketing Management BTEC HND in Business (Management/HR/Accounting/Marketing) Unit 20 - Sales Planning and Operations Assignment Title Task 1: Sales Plan Task 2: Importance of Sales Function Task 3: Sales Presentation of (selected product)

Learner Declaration:

I certify that the work submitted for this assignment is my own and research sources are fully acknowledged.

Learner’s Name

Signature

Date A121195

30th april 2017
Mohamed Nizam Nixam 30th april 2017
Table of Contents
Executive Summary ....................................................................................................................................

3

Task 01 ......................................................................................................................................................... 4

1. Role of personal selling within the overall marketing strategy (Lo-01) ......................................... 4

1.1. How Personal selling support to promotional mix (P 1.1) ....................................................... 4

1.2. Compare Buyer behavior and decision making process in different situation (P 1.2) ......... 4

1.2.1. Situation-1-When customer buying our company product ............................................. 4

1.2.2. Situation 2-Our Company buying other company’s product or services ...................... 6

1.3. Role of sales team within marketing strategy (P 1.3) ............................................................... 8

2. Role and objective of the sales management (LO-03) ...................................................................... 9

2.1. How Sales strategies are developed in line with corporate strategies (P 3.1) ........................

9
2.2. Importance of recruitment and selection process (P 3.2) ...................................................... 10
2.3. Role of Motivation, remuneration, and training in sales management (P 3.3) .................... 12
2.4. Organizing sales activities and controlling sales output (P 3.4) ............................................ 14
2.5. Use of database management can be used in effective sales management (P 3.5) ............... 14
Task 02 ....................................................................................................................................................... 15
3. Introduction ....................................................................................................................................... 15
4. Sales plan ........................................................................................................................................... 15
5. Situational analysis ........................................................................................................................... 16
5.1. Critical Success factors ............................................................................................................. 16
5.2. Resources and competencies of Nestle..................................................................................... 17
5.3. Available opportunities for Elephant House .......................................................................... 17
6. SWOT analysis .................................................................................................................................. 18
6.1. Strength ...................................................................................................................................... 18
6.2. Weakness ................................................................................................................................... 18
6.3. Opportunities ............................................................................................................................. 19
6.4. Threats ....................................................................................................................................... 19
7. Competitor Analysis ......................................................................................................................... 19
8. Strategies to implement the sales plan ............................................................................................ 20
8.1. Product ....................................................................................................................................... 20
8.2. Segmenting, targeting and positioning of new product ......................................................... 21
8.3. Selection of Targeting Strategy for the Selected Product ...................................................... 21
9. Sales budget ....................................................................................................................................... 22
10. Conclusion ..................................................................................................................................... 23
11. References ...................................................................................................................................... 25
Executive Summary
This report focus on the consumer decision making process and role of the sales team. Therefore, first part of the report gives the detailed business analysis of consumer decision making process and importance of decision making process. In addition that it has been discussed the stage of the consumer decision making prices in detailed. After that, consideration was given to the factors that affected to the consumer decision making process, under two scenario.
Second part of the report gives the detailed analysis of role of the sales team. After that, it has been considered the importance of selection procedures and impotence of job descriptions. In addition to that, sources of recruitment has been considered.
Task 01
1. Role of personal selling within the overall marketing strategy (Lo-01)
1.1. How Personal selling support to promotional mix (P 1.1)
Personal selling can be recognized as process of using people to sell the product after meeting face-to-face with the customer. In this regard there is a direct relationship between sales person and customer. Therefore, customer will have a good understanding about the product, its benefits and features. Through this mechanism sellers promote the product through their attitude, appearance, skills and specialist product knowledge. They aim to inform and encourage the customer to buy the product, or at least trial the product
Due to that product can be easily promoted its Customer base and therefore, personal selling is use as method of promoting product.
1.2. Compare Buyer behavior and decision making process in different situation (P 1.2)
1.2.1. Situation-1-When customer buying our company product
Consumer Purchase Decision Making Process
Customer purchase decision-making process involve set of activities. Firstly, customer need to understand the need that is required to fulfill by buying goods or services. Therefore, identification of services. Customer purchase decision making process implies that when each and every purchase of goods, hay have to consider all step. However, when buying day today routine goods, they skip some of the steps. Following steps are involving in customer purchasing decision making process.
Each and every day, customer is engaging buying something buying process is not a new concept for consumers. Sometime consumer has different needs to buy goods and services. Therefore, it is essential to priorities customer need according to the importance of them. After that, customer need to decide how much of money available and allocate for buying that goods or services. If the customer has not adequate money or he is unable to fund required amount by other way, customer purchasing process is incomplete (Robert at al, 2000).
Furthermore, customer should decide how to buy and from where to buy. There are different places, who sell the same products. Sometime mall differences can be seen with regards to the price, quality or features of the products. Therefore, customer should decide from where, he is going to buy required product.
Influences on consumer Purchasing Behavior
There are different factors are affected to the customer purchasing process. Those influences can be categorized in to major four categories such as cultural factors, Personal factors, Social Factors, Philological factors.
Cultural Factors-Consumers belongs to different cultures, different religions and different nations. Therefore, their buying pattern is subject to the culture that they are belongs. As example, Hindu People don’t like to eat beef, since by religion, they treat cow as holy animals. Therefore, cultural factors has he influences on the consumer purchasing decisions. Furthermore sub cultures and social classes such as up class, middle class and lower class influence consumer’s decision making process. Upper class people only buy goods to show their social class, while lower class buy goods to fulfill their basic needs at a lower cost. Therefore, it clear that, customer purchasing decision is highly influenced by cultural values of the society.
Social factors are factors such as social status, social roles, and influences by family and references group. When buying a product, different people such as family members, friends may be influence to our purchasing decision. Therefore, customer purchasing decision is subject to those social factors. In addition to that personal factors, such as age, gender, educational level also impacted to this decision. In addition to that social roles and status whether consumer is mother father, children, girlfriend, their purchasing decision is subject to those social statutes. . Furthermore, physiological factors, such as perception, motivation and other believes and norms are affected o the decision making process of customer (Robert at al, 2000).
Structure and Importance of the Decision making Process
Consumer decision making process involve five steps, those are explained in below.
Problem Recognition- Consumer buying process will commence after identifying the problems or need that us going to be filled by purchasing good or devices. In this consumer should decide, why they going to buy goods, what kind of need they are fall will to fulfill.
Information search- in order to by the products they have to aware about the products and services and locations that they going to buy. For that consumer can use his own memory about goods or services that they have previously brought. In addition to that external sources such as advertising, public sources like, Mass media, personal sources like information from family members or friends can be used to collect the information’s.
Evaluate the alternative- if there are many alternative to fulfill consumer needs, that should select one product, by considering the price of the product, quality of the product, perception about product and etc (Diaz, 2012).
Buy product-After that finally customer should purchase the product
Importance of the decision making unit
Rather than just buying the product or services, customer should follow this purchases decision process. It will enable consumer to purchase required goods at low cost. In addition that it will enable to purchase high quality product for their usage. This will enable to find best goods and best way of filling their needs, since customer decision making process requires to collect information firm various sources and select one products.
1.2.2. Situation 2-Our Company buying other company’s product or services
Purchase Decision Making Process of Organization
If the organizations going to purchase goods or service form outside companies, there is some different process. When buying’s goods or services for the organization, it is essential to adhere rules and regulations of the company. In addition that it requires to comply with the policies and procedures of the company when buying something. Some time there is a proper procedure to understand the purchase requirements and, getting approval of purchasing something or etc.
Influences on company Purchasing Behavior
Like Consumer buying process, here also different factors affected to the when buying goods or services form outside companies. As an example, top management desire is affected to the purchasing decision. Not like individual consumer, when considering the company, lot people involving deciding which product is to be buy from which suppliers or which kind of is to be bought.
Furthermore, previous experience in buying such kind of product also considered. Some time, some suppliers may not fulfill terms and conditions of the agreements. In that case, such suppliers should not be selected for the buying goods and services (Diaz, 2012).
In addition that availability of fund and amount of money that is going to be spend on those product also determined the purchasing behavior. Furthermore, company’s expectations for the quality of goods, and other required factors also determine the purchasing behavior.
Structure and Importance of the Decision making Unit
When considering the decision making process of a company, like individual buying process, it is essential to understand the need for buying goods or services. In a company, need or requirement is comes from a different department like production department or marketing department. Relevant need is raised to the procurement department and they should check whether it is really required to buy the goods. After that, relevant approvals form the top management should obtained.
After that, company should call for quotations. By considering the above price, delivery time, quality of product, warranty period and other factors, company should evaluate available opportunities for better performance. After that they should select a product and services and suppliers to buy those products.
Importance of decision making Unit
When buying something decision making is very important. It enable company to find good quality product for the company at a reasonable price. If there is no proper decision making process, company will buy the goods or services. However, required need cannot be achieved by the company. Sometime product may not be capable enough to archived required needs or expected
outcome. Therefore, in order buy required product with high quality and at a reasonable price, decision making unit is very important (Diaz, 2012).
It will enable to make appropriate use of money, save time and optimally use available funds
1.3. Role of sales team within marketing strategy (P 1.3)
Sales tem included the number of person such as Sales leader, Sales professionals, Sale mangers, sales support staff, sales operational person and etc. sales team is responsible for development of sales plan and achievement of sales plan. In addition that there are other key responsibilities that have fallen to their responsibilities (Robert at al, 2000).
Crete the personal deliverables and setting sales target are their responsibilities. However in order to achieve, sales objectives and target, sale team have to implement kind of strategies like sales promotional activities, introduction of different discount procedure to increase sales amount. In addition that sales should team should make action to enhance their brand awareness of the products, for that they should take different marketing actions and advertising activities.
Build Customer database- Sales team should develop proper database for their customers including their name, address, age and normal purchasing patterns. This will enable sales team to understand their future buying pattern and customer preferences (Sullivan at el, 2005).
Prospecting and pioneering customers- Prospecting refers to the finding new customers for the development of their customer base and enhanced the sales amount. In order to increase company’s market share, increase sales value, it is essential to enhance customer base. For that company should find new customers. Responsibly of finding new customers lies with sales team. Therefore, sales team should find new customers by way of sales promotions, or any marketing activities.
Stock allocation-Based on the customer demand for the products and locations of them, sales team should allocate available stocks for distribution. In addition to that based on the customer preferences, it should be allocate more resource to product that has greater preference than others.
In addition to that, delivering sales report to marketing and finance division should be done in timely basis. Based on those reports, production department forecast future demand for the product
and take action to produce those. Therefore, it is essential to consider, and deliver required resource for them.
2. Role and objective of the sales management (LO-03)
2.1. How Sales strategies are developed in line with corporate strategies (P 3.1)
Since the target market is diabetes patients, it can be easy to captures the market. Since any of the company was not be able to develop a product by addressing the above issue. Therefore, company will be able to captures the market vary easily. By considering the available option, it can be concluded that company can sell their product by using differentiated strategies. Then it will be easy to provide their products by considering the different needs and want of age categories.
Since the target market covers large population (40-70 Age Group), company can be able to success in developing and marketing their products to the market. Since there is a trend in increasing. However when considering the differentiated strategy company should reject this strategy.
When considered the targeting, Elephant house can use, undifferentiated, concentrated and differentiated strategies. If undifferentiated strategy is selected, Company has to promote their product to each and every market. However if selected the focus or other strategy, they can use specific segment of market and sell those product at a high rate. If differentiated strategy is used, company has to introduce new products according to those segments.
• Improved sale by 10% within 2017- it is specific objective that can be measured. In addition to that time boundary also there and it is not and impossible objective.
• Increase market share by 5% per annum- it is also specific objective that can be measured. In addition to that time boundary also there and it is not and impossible objective.
• Achieve full market coverage in western and southern province in Sri Lanka within 2017- it is also specific objective that can be measured. In addition to that time boundary also there and it is not and impossible objective.
After developing Objectives Company need to developed possible strategies and tactics to achieve those objectives.
In order to achieve first objective that is set out above, company can introduce various sales promotional activities. Through that company’s sales staff can be motivated to sell more. Some kind of sales commission should be provided to them as motivation of sales staff. In addition to that company can sale those product to existing sales staff in bulk amount. For that also, company can use sales promotional activities such as promotional champion or something.
In order to achieve second objective, that is improve its market share company can look new market, especially in the north province. In addition to that they can improve existing distributional Chanel, network channel’s and also. In addition to that company can launch the product in different flavors in order to capture more customers.
In order to achieve third objective company can considered, new shops, outlets, retailed and wholesalers. For that company can enter in to agreement with other distributors to effectively and efficiently provide goods to the market and achieved 100% market coverage in said provinces, since large amount of population are available in those provinces.
2.2. Importance of recruitment and selection process (P 3.2)
Selection very important for the company, since those are the people who do work for the benefit of the company near future. Therefore, selection of right people is essential factor for the success of the company. For that company can used structured selection procedure. It should include preliminary test, interview, and IQ test also. If an employees has been selected for the position, who will be retain in the company for long period. Their future commitment, working will impact to the company’s future development. Therefore, company should select most suitable person for the potion (Diaz, 2012).
Internal sources refers to the employees hired for the position within the company itself. For that it can be used to transferred or promotion of employees. When considering the external recruitment, advertisement is the best method (Sullivan at el, 2005).
Interview preparation and techniques used to prepare for interview
In order to prepare for the interview, candidate should prepare correctly. For that he decide to what kind of dress should be wearied for the interview. Based on the job or, position or industry dress code may be different. Therefore, it is essential to wear appropriate dress for the interview. Furthermore, proration is more suitable method to face interview. For that candidate should find something about the company and industry and be prepared strongly for the interview. Be on time, be enthuses, listen, answer the question correctly should be done appropriately. In addition to that, if they give chance to ask question, it is better to ask something. This will enable to show our colors (Diaz, 2012).
Selection and Appointed method Used by your company
In order to select employees, company can use several tools. Those are application forms and CV s, Assessment centers, online screening and online shortlisting, aptitude test and presentations, group exercise, or references can be used. In order to appoint employees, contract basis, permanently can be appointed for the position. In addition to that they can be recruited as trainees.
2.3. Role of Motivation, remuneration, and training in sales management (P 3.3)
Motivation
Motivation not only link to employee performance, but also link to the personal achievement of the employees. If the company has motivated staff, company will achieve their objectives and thereby become a success company in the industry. Sometime companies objectives are adversely affected to the employee personal goals. Because if the employee is not motivated, less satisfaction about the company, its performance and his job it will be unfavorable affected to the company’s objectives. Mangers must ensure that employees has allocate sufficient amount of resource for employees and their development. If they are motivated, they will generate large amount of sales for the company, and therefore, company will be able to generate more revenue for the company.
With regards to the Nestle they were able to increase its sales during past few years. Since they have treated its staff well, they brought significatnt amount of sales for the company. (Petcharak, 2002).
Company’s has faced lot of difficulties when motivating employees and when providing better return for them. Keep employees satisfies and make motivated them is very much difficult task and that is challenging one. Human resource department has huge responsibility to increase employee’s motivation level in very satisfactory level (Petcharak, 2002).
Employee performance and productivity will be based on the mental and physical presence. Since those two factors are very much important to success of the company, organization treat those two factors as most important factors. Company must be considered both these factors, if they want to become the industry leader and increase its revenue. In another way around if they want to become the first if the industry, those factors should be considered (Wanayam, 2010).
If the employees of the company are motivated, thy work hard and their commitment is very high. Resultantly they will bring large amount of sales for the company. Thus it is essential to take action in order to motivate them and improved their satisfaction level. As a result of that, employee involvement in day today transaction will improved by significant amount. (Frimpong et al, 2009).
Reward System
Reward system is the way of increasing sales, way of developing innovations and is an effective management and marketing technique (Branham,2001). If the managers and other governing body understand the importance of why employees are rewarded, they provide the attractive reward system. Then, the employees satisfy and work more creatively ad they will bring signinfcat amount of revenue for the company. (Randhawa and Gurpreet, 2007). Since innovative ideas enable the growth of the business, and sustainability of the business, it is important to develop the appropriate reward system. In other way around it is necessary to avoid the punishing employees if they unable to achive sales targets. (Griffin 2006, 346). Not only that, reward system should provide the self-interest to work (Block 2005, 173).
Employees who has outstanding performance, will be rewarded in a positive manner. In another way around if the employee performance is less performed than the required and expected level, he will be negatively motivated. Some companies used, punching system to treat employee who are underperforming. Furthermore, it is used to bring the employee performance to required level, if that is low than the standard level. By doing so company will be able to achieve higher sales growth level.
Objective of the reward stem to achieve organizational goals by motivating its employees. In order to get the maximum sales from employees. Based on the situation of the employees, and the work environment, employee motivation may be vary. Thus different time, employees are differently motivated. Rewarding does not refers to provide, higher finical benefits to them. In addition to the finical benefits, recognition, self-satisfaction, promotion scheme also affected to the employee motivation level. This when developing reward system both finical and non-finial benefit need to be considered (Wanayam, 2010).
Training and development
There are various type of training that is conducted by the company. Those are induction training, job instruction training, vestibule training, Refresher training and apprenticeship training. Induction training refers to the orientation that is provided to the new recruitment of the company. Job instruction training provided by the company time to time in order to tell the nature of the jib responsibilities and duties and other work responsibilities. Vestibule training is the training that is
conducted by the employees in order to given idea about the work responsibilities and actual work performed by the employees. However, this kind of training are given by the out of the workplace (Randhawa, 2005).
Facilitators for the training and developments
Training program design should be facilitated by the different level of managers. And it should be conducted by the HR department. However, contribution of several line managers should require in order to success the training program. Not only that, industry specialist also required for the company (HR Magazine, 2010).
2.4. Organizing sales activities and controlling sales output (P 3.4)
The role of Sales is to ensure that products are distributed in all the channels where consumers may shop for Nestle brands. This continuous pursuit for a deeper and wider distribution, combined with world-class visibility and strong consumer promotional activities, enables consumers and shoppers to purchase Nestle products and brands at any time and place. The Sales function also embraces the use of Information Technology for driving efficiencies and profitable sales operations. Distributor Sales Representatives use hand-held terminals to achieve optimal market coverage and high levels of customer service. Sales tem is responsible for achievement of sales target and based on that they have provided with attractive commission benefits (“Customer and Sales,” n.d.).
2.5. Use of database management can be used in effective sales management (P 3.5)
They have highly effective ERP system called SAP. There are number of modules such as supplier module, inventory module, cash module, Financial Management module and the customer module of the SAP S/W heavily. Therefore, it result to improve the sales management activities when enhancing the revenue of the company. There is a separate department for the sales management and it is called Commercial Control Division. This division is responsible in performing all the financial transactions with related to sales. Such as receiving Sales cheques from distributors, Paying allowances, Bank Statements, Credit and Debit Notes, Target Incentive Payments, Sales promotion payments for outlets, Distributor Claims for the expenses they have incurred, VAT calculations, Discounts for Distributors etc.
Therefore use of database management will allowed company to have more advantages and benefits from it. Thus sales activities will be success and there will be a greater effective level and efficiency level.
Task 02
3. Introduction
In 1866 Ceylon Cold Stores limited was established. Then in 1991, it was turn out to be a member of John Keels Group. In present it is very popular for the brand of Elephant house. Trademark of elephant house was able to make their