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Modern Sciences and Arts University (MSA)

Sales Management
MKT 403
Weight Watchers



Name: Sara Tarek Kamel
ID: 100693
Presented To: Dr. Rasha El Naggar
T.A: Mr. Safwat Adel


Summer 2013
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Table of Contents
Topic Page
Background 3

Target Market..... 5

Competitors... .6
Positioning..... .6
Pricing Strategies.. .7
Forecasted Demand... 7
Number of Sales Force Required... 7
Ways of Organizing Sales Force to Sales Territories......9
Way of Recruiting Sales Force..11
Training Program...12
Sales Territory Design Method.16
References.18
Appendix...19









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Background
Weight Watchers is an international company based in the United States that offers
various products and services to assist weight loss and maintenance. Founded in 1963
by Brooklyn homemaker Jean Nidetch, it now operates in about 30 countries around the
world, generally under names that are local translations of Weight Watchers. The core
philosophy behind Weight Watchers programs is to use a science-driven approach to help
participants lose weight by forming helpful habits, eating smarter, getting more exercise
and providing support.
Weight Watchers mission is to help you lead a healthier lifestyle.
While there are no required foods in our Program, Weight
Watchers offers a variety of deliciously satisfying better for you
products that can be enjoyed as part of this lifestyle.
Available in supermarkets and mass merchandisers throughout the
United States, the Weight Watchers food products include cheese,
cookies, breads, chocolate candies, frozen novelties, yogurts,
snack cakes and muffins. These sensible options provide a
convenient way to save calories without sacrificing great taste and
are consistent with the Weight Watchers philosophy of enjoying a
full range of food options while managing body weight and
practicing portion control.
Weight Watchers' core approach is to assist members in losing
weight by forming helpful habits, eating smarter, getting more
exercise and providing support. In contrast to other diets that
might provide a list of foods that either must be or should never
be eaten, Weight Watchers ' primary plan has no directly
comparable requirements and no food is off limits. Participants
lose weight by creating a calorie deficit; the Points Plus system
provides a framework for creating that deficit. Accordingly,
Weight Watchers is generally compatible with other diet
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approaches and/or food intake restrictions (e.g., the Paleolithic diet and South Beach
diet), provided participants use the Weight Watchers framework to measure and limit the
quantity of food consumed while using the other diet plan to dictate the range of
acceptable food choices. The newest plan has adjusted the "cost" of items while retaining
the fundamental "counting, budgeting, and planning approach" that has been the hallmark
of Weight Watchers plans since the introduction of points-based counting systems.
There are two primary ways individuals can work with Weight Watchers: via in-person
meetings and an online-only program. Both programs use the same basic materials and
computations. For in-person meetings, Weight Watchers encourages members to select a
goal weight that results in a body mass index generally accepted as healthy (18 to 24.9),
although a member may also establish a goal weight outside of that range after providing
a doctor's note to that effect. In order to join Weight Watchers in the United States, one
must weigh at least 5 pounds (2.3 kg) more than the minimum weight for his or her
height.
Once a member reaches his or her goal weight, he or she starts a maintenance period. For
the following six weeks, the member gradually adjusts his or her food intake until the
member no longer loses or gains weight. Weight Watchers eTools is a Web-based
service for members that includes access to support materials and tracking tools. The
service is available for an additional fee for members who pay as they go, and is included
in the fee for members who opt for the recurring "Monthly Pass" membership plan. In
some areas Weight Watchers meetings are operated by a locally franchised organization
rather than by Weight Watchers International. Additionally, a fully online program is
available via the Weight Watchers website.





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Phase One
Weight Watchers is founded in the United States that helps people lead a healthier
lifestyle. It is a good idea that can be applied in Egypt because Egyptians love to eat food
that is full of Fats which makes them obesity. It is a customer product (B2C) because it
targets 3 types of customers; First, normal customer such as university, clubs,
schoolsetc. Second, business customers such as hospitals, health clubs, restaurants
etc. Third, food stores such as supermarkets and hypermarkets. It is very beneficial and
useful to prevent diseases such as cancer, heart diseases, pressure disease, diabetesetc.
According to Preez (2007), Our health depends largely on the food we eat.

Weight Watchers Target Market
Target marketing tailors a marketing mix for one or more segments identified by market
segmentation. Target marketing contrasts with mass marketing, which offers a single
product to the entire market. Two important factors to consider when selecting a target
market segment are the attractiveness of the segment and the fit between the segment and
the firm's objectives, resources, and capabilities.
Weight watchers targets all ages from 10 and above, both genders males and females,
social class: A and B, income: 2000 and above (average wage is 800), educated people,
occupation: employees, professionals, housewives,etc. The products will be available
in supermarkets and hypermarkets in Cairo and Alex because they have big population
(approximately 12 million people). If there was a huge demand on it and people love the
idea, I will open in other geographic areas in Egypt.






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Weight Watchers Competitors
Weight watchers direct competitors in Egypt are Juhayna (for dairy products), Farm
Frites (for frozen products), and Rich Bake (for bakery products such as bread, cookies
etc) but they do not offer healthy food. But it will face tough competition among its
generic competitors (restaurants) which offers healthy food:









Positioning
Positioning is the development of the image of a product directly against to the
competitor products and other products produced by the company's own. The purpose is
management's attention by the recipient to a certain product and to differ that product in
favor of the company, compared with similar products.
Positioning, especially with the market segment of products, can be defined as placing
the product into the consumers reference frame of product category. It tries to obtain
new positions in the minds of consumers and to move the products into new positions.
Thus, developing superiority over competitors is intended, it is especially important in
high competitive conditions. (Karadeniz, 2009).
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All competitors position themselves as the best place that offers healthy food to
customers. But I will make product differentiation because Egyptians are price sensitive
and prefer a variety of alternatives to choose from thats why Weight Watchers will be
positioned for its PRICE AND FOOD VARIETY.
Pricing Strategies
All competitors are applying price skimming, which means charging a high price to
recover costs as quickly as possible. Then, when the price is no longer unique, the price is
dropped.

Phase Two
A. Forecasted Demand
The expected demand for the next three years is 2,000,000 and if the demand on the
product increases, the number of sales representatives will also increase, otherwise I
wont.

B. Number of Sales Force Required

Weight watchers wants to calculate the workload among its sales representatives, for
sales rep (a) which are universities, clubs, schoolsetc. If there are 1000 customers and
visit it 30 times per week then the total visits will be 2500. For sales rep (b) which are
hospitals, health clubs, restaurants etc. If there are 750 customers and visit it 10 times
per week then the total visits will be 1250. And for sales rep (c) which are supermarkets
and hypermarkets, if there are 1500 customers and visit it 2 times per week then the total
visits will be 1600. So when weight watchers added them all and divided it by the
number of visits, it found that it needs 5 sales representatives.



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Work load of Sales Person = Work days Weeks Call per Day
= 5 50 5 = 1250 Visits
A = 1000 + 1500 = 2500
B = 750 + 500 = 1250
C = 1500 + 100 = 1600
So, A + B + C = 2500 + 1250 + 1600 = 5350 Visits per Year
5350 / 1250 = 5
The number of sales force required to cover this demand is 5.

















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C. Way of Organizing Sales Force to Sales Territories
An organization is simply an arrangement- a working structure- of activities involving a
group of people. The goal is to arrange these activities so that the people involved can act
better together than they can individually.
There are four ways of organizing sales force, through:
Geographic Specialization
Probably the most widely used system for dividing responsibility and line authority over
sales operations. In this type of structure, each salesperson is assigned a separate
geographical area, called a territory, in which to sell.
Product Specialization
The type of product sold is another frequently used basis for dividing the responsibilities
and activities within a sales department. The two most widely used structures featuring
product specialization organization are product operating and product staff organizations.
Market Specialization
Many companies divide the line authority in their sales departments on the basis of type
of customer, classed either by industry or by the channel of distribution.
Combination of Organizational Bases
The basis of specialization geography, product, market, or a combination- may vary
from company to company, but some specialization is needed to remain competitive. A
firm may combine geographical specialization with product staff specialization (through
the use of product manager) or a sales force may combine market specialization with
geographic specialization. (Spiro, Rich, & Stanton, 2008).



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Weight Watchers sales force will be organized by combining between market
specialization and geographic specialization. So that they can market their product well,
understand the needs and wants of each group, to avoid conflicts and one customer not to
be called by many sales representatives because this will affects the sales representatives
performance negatively.




Group A = University, clubs, schoolsetc.
Group B = Hospitals, health clubs, restaurants etc.
Group C = Supermarkets and hypermarkets.




CEO
SALES
MANAGER
AND
DIRECTOR
SALES
MANAGER
AND SALES
TEAM FOR
GROUP A
CAIRO ALEX
SALES
MANAGER
AND SALES
TEAM FOR
GROUP B
CAIRO ALEX
SALES
MANAGER
AND SALES
TEAM FOR
GROUP C
CAIRO ALEX
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D. Way of Recruiting Sales Force
Effective recruitment and selection of salespeople is one of the most crucial tasks of sales
management. It entails finding people who match the type of sales position required by a
firm. Recruitment and selection practices would differ greatly between order-taking and
order-getting sales positions, given the differences in the demands of these two jobs.
Therefore, recruitment and selection begin with a carefully crafted job analysis.
A sales manager must organize the sales force so that all the necessary tasks are done
well. A large organization might have different salespeople specializing by different
selling tasks and by the target markets they serve. Sales managers often divide sales force
responsibilities based on the type of customer involved
It is important to hire good, well-qualified salespeople. But the selection in salespeople is
a hit-or-miss affair-done without serious thought about exactly what kind of person the
firm needs.
A job analysis is a written description of what a salesperson is expected to do, and
therefore it differs among firms. This analysis identifies eight major job factors and
describes important activities associated with each. Note particularly the frequent
mention of customer service functions, relationship building, and the specific reference to
personal integrity and selling ethics. (Meghisan, n.d.).
Weight Watchers will recruit 5 sales representatives; one of them will be experienced
representative and the others will be recent graduates (new recruits) by getting them from
the job fairs in universities. It will hire only one experienced employee because of the
cost by getting him/her from its direct competitors. It will use experienced employees
because they know how to communicate with customers, know their needs and wants and
ways of satisfying them. And also it will use recent graduates because they have
creativity. Both can work together to find out creative ways to convince people /
customers to buy weight watchers products because its useful and beneficial for them and
also it is an easy way to lose weight.

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E. Training Programs
Training as an organizational intervention may be defined as a well thought of set of
activities aimed to facilitate learning of knowledge, attitude, and skills among its people
in the organization to improve their current job performance and contribute to the
achievement of organizational goals. It is indispensable and becomes strategic if it takes
into account long-term organizational goals and objectives such as development of new
and better products, expanding to global market etc. (Edralin, 2004).
The importance of training are the following; it increases organizational commitment,
develops the cognitive, physical and spiritual dimensions of the employee, improves job
performance, contributes to flexibility to adapt to changing internal and external factors,
develops interpersonal skills, and heightens employee morale. (Edralin, 2004).
A salesperson needs to be taught-about the company and its products, and about giving
effective sales presentations. But this isn't always done. Many salespeople fail-or do a
poor job-because they haven't had good training. Firms often hire new salespeople and
immediately send them out on the road-or the retail selling floor-with no grounding in the
basic selling steps and no information about the product or the customer.
It's up to sales and marketing management to be sure that the salespeople know what
they're supposed to do-and how to do it. A job description is helpful in telling salespeople
what they are expected to do.
The kind of initial sales training should be modified based on the experience and skills of
the group involved. But the company's sales training program should cover at least the
following areas: (1) company policies and practices, (2) product information, and (3)
professional selling skills. (Meghisan, n.d.).

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Recent graduates (new recruits) should take training
in order to know how to communicate with
customers (communication skills), companys
product and services, time management etc., but
experienced employee should take only training
about companys product and services and
companys policies and practices.

Sales Training Program
1. Training Assessments

In the training assessment phase, sales executives must ask themselves four questions:
What are the training program objectives? who should be trained? what are the training
needs of the individual rep? and how much training is needed.
Both new recruits and experienced reps should be trained. Inexperienced recruits need to
learn not only about their companies and the products they are selling but also about
basic selling techniques. It requires from 2-6 months.
Experienced reps, as things continuously change, new products are introduced markets
shift and buyers come and go, these changes require retraining the sales force has to
handle the new developments. It requires from 2-3 weeks.
The objective is to increase sales productivity; this can be done by increasing sales per
salesperson or by lowering costs. Training is frequently used to accomplish greater sales
per salesperson and sometimes used to lower costs. (Spiro, Rich, & Stanton, 2008).




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2. Program Design

In the program design phase, the following questions must be answered: Who should do
the training? when and where should the training take place? what should the content of
the training be? and what teaching method should be used?
Weight Watchers will depend mainly on outside specialist in nutrition as he/she has
greater specialization and expertise, but on the other hand it requires additional expenses
and program content may not be specific to the companys needs. It is important to have
a specialist in nutrition especially for hospitals and health clubs.
The training should be taking immediately because no rep should be placed in the field
until he or she is fully trained and cannot risk exposing customers to poorly trained reps.
It is going to be a Centralized Training as it involves personnel dedicated to and highly
skilled in training , allows interaction with home office, and reps focus on training.
However, it is more expensive, limited amount of time, and reps kept away from home
and family.
The content of the training will be both standardized form suits (inexperienced reps
training for new products and policies) and customized curriculum (is prepared to
significant portion of experienced sales reps after specific need assessment).
The first teaching method that Weight Watchers will use is lectures because selling
techniques are best taught by participation methods, but a limited number of short
lectures introducing employees to the underlying problems and principles can be
extremely helpful in the most sales training programs. Then, demonstrations because it
can be used to great advantage in teaching both product knowledge and selling
techniques. It shows employees how to handle innumerable selling situations that are
difficult to describe. (Spiro, Rich, & Stanton, 2008).



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3. Reinforcement
Most salespeople wont change their behaviors as a result of training unless there is some
ongoing reinforcement. The most frequently used method is for the sales manager to
serve as a coach, reinforcing training efforts during actual calls. (Spiro, Rich, & Stanton,
2008).
Weight Watchers will reinforce its sales rep by giving compensation to the ones who
work and deduct the salary for the ones who does not work.

4. Training Evaluation
During the training evaluation phase, sales executives must assess the effectiveness of
their training programs. Evaluation is necessary to determine the success of failure of the
training. The outcomes must be measured against the objectives. There are four
categories of outcomes: Reactions, Learning, Behavior, Results. (Spiro, Rich, & Stanton,
2008).










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F. Sales Territory Design Method
A Sales territory comprises a number of present and potential customers, located within a
given geographical area and assigned to a salesperson, branch, or intermediary (retailer or
wholesaling intermediary). (Spiro, Rich, & Stanton, 2008).
The benefits of sales territory design are the following; it enhances customer coverage,
reduces travel time and selling costs, provides more equitable rewards, aids evaluation of
sales force, increases sales for the sales organization, and increases morale. (Spiro, Rich,
& Stanton, 2008).
There are two types of sales territory which are Build-Up and Break-Down. Build-up
method is used to equalize the workload among sales reps and break-down is used to
equalize the sales potentials.

Build-up Method of Territorial Design
First, desirable call patterns: call frequency per account per year (management must
determine how many times per year an account should be visited). Second, total calls
needed in each control group (by multiplying the number of each type of account in the
control unite by the number of the call that type of account requires. We can determine
the total numbers of call needed in each control unit). Third, workload capacity: Total
calls possible per rep per year = number of daily calls x days selling (the number of calls
that rep can effectively make in one day depend on several factors such as the average
length of time required for a call and the amount of travel time between customers).
Fourth, tentatively set territorial boundary lines (combining control units until the yearly
number of total calls needed EQUAL total calls a sales person can make). And finally,
modify territories as needed (the boundaries line of a given territory may need to be
adjusted due to special conditions such as competition). (Spiro, Rich, & Stanton, 2008).


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Breakdown Method of Territorial Design
It is often used by firms that want exclusive distribution or that sell some type of
industrial products. First, company sales potential (determine what sales volume the
company can expect in its entire market). Second, sales potential in each control unit (to
combine the sales potential in each control unit, a market index is multiplied by the total
sales potential). Third, sales volume expected from each sales person (estimate how much
each sales rep must sell to have a profitable business). Fourth, tentatively set territorial
boundary lines (divide the entire market so that each sales rep has about the same
potential) and finally, modify territories as needed (the boundaries line of a given
territory may need to be adjusted due to special conditions such as competition). (Spiro,
Rich, & Stanton, 2008).
Weight Watchers is going to use build-up method to equalize the workload among its
sales representatives to make an intensive distribution.












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References
Preez, H. (2007). Prevention of Disease through Food. Journal of Natural Medicine, 34-
36.
Karadeniz, M. (2009). Product Positioning Strategy in Marketing Management. Journal
of Naval Science and Engineering, 5 (2), 90-110.
Book: Spiro, R. L., Rich, G. A., & Stanton, W. J. (2008). Management of a Sales Force
(Twelfth Edition). New York: McGraw-Hill Companies.
Meghisan, F. (n.d.). Sales Force Recruitment. pp. 1396-1401.














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Apricot & Almond Muffin


Ingredients
100g (3oz) self raising flour
1 tsp baking powder
2 eggs
10g (
1
/
3
oz) artificial sweetener
2 tsp almond essence
20g (oz) Weight Watchers Half Fat Butter, melted
20g (oz) ground almonds
8 tsp Weight Watchers Apricot Jam
10g flaked almonds

Method
Preheat the oven to gas mark 7/220C/fan 200C.
Meanwhile, place 4 muffin cases in a deep whole muffin tin.
Sift the self raising flour into a large mixing bowl with the baking powder and set aside.
Beat the eggs with the sweetener and almond essence until combined.
Add the Weight Watchers Half Fat Butter and beat again.
Add the sifted flour to the wet ingredients and stir in the ground almonds to mix.
Spoon 1 heaped tbsp of the mix into each case and top each with 2 tsp Weight Watchers
Apricot Jam.
Cover with the remaining muffin mix.
Sprinkle the flaked almonds over the top of the muffins, and then bake for 10-15 minutes
until risen.
These are best eaten on the day they're made.
10 Minutes to Prepare
15 Minutes to Cook
Serves 4