Professional Documents
Culture Documents
Sales Management Case Study Analysis
Sales Management Case Study Analysis
UNITNUMBER :39
UNITNAME : Sales Management.
STUDENTNAME : Devesh Rajak.
TUTORNAME : Anish Desai.
CENTER : Thane.
BATCH : 2018-20.
Table of Contents
Introduction & Scenario. .................................................................................... 2
Principles of Sales Management – Indian Inc. .................................................... 4
Principles of Sales Management – B2B & B2C. ................................................... 6
Merits of organizing Sales Structure – Indian Inc. .............................................. 7
Implementation of types of Sales Structure & its Evaluation. ............................ 8
Selling through others – Importance & Advantages. .......................................... 9
Selling techniques & Building customer relationship. ...................................... 10
Sales Portfolio – Indian Inc. .............................................................................. 12
Sales Cycle & Key account management – Indian Inc. ...................................... 13
Improving financial performance – Indian Inc. ................................................. 15
Performance Management Process – Indian Inc. ............................................. 17
Reference. ....................................................................................................... 19
Introduction & Scenario.
Sales Management is a process of co-ordinating and implementing various
sales techniques in order to consistently achieve the pre-decided sales target.
It is a systematic process which allows understanding the objectives of selling
and to boost the sales performance. It also provides insight about the current
scenario of an industry and helps businesses to flourish in the on-going highly
competitive market and have a sustainable growth in the near future.
The researcher has been appointed as the sales Manager for the all Mumbai
zone and has been assigned various task in order to perform during his tenure
in the organization. The researcher also has to develop a report and has to
describe about the tasks performed. This task is as described below:
1. To train the newly employed sales staff about all the aspects of the sales
& marketing techniques so that they can understand the principles of
sales management.
2. To create strategic sales structure by evaluating the merits of an
organized sales structure and also deliver the importance of selling
through others.
3. To train the sales team members about how to covert customer
information into customer knowledge and also elaborate about the
principles of successful selling.
4. To provide the knowledge of the finance of selling by giving examples of
the current sales portfolio of the organization. Also, to educate about
the sales cycle and how it’s is been affected by the overall performance
of the employees.
Principles of Sales Management – Indian Inc.
There are various elements that affects the activity of selling products &
services. For understanding these elements and using it in your favour for
efficiently selling the products and services, firstly individual needs to
understand about the principles of the sales management. There are various
principles which individuals need to understand while pitching it to clients for
selling. The researcher who is the sales manager had conducted a session to
elaborate and give learning about various principles and also some example of
the organization in relation with the teachings.
Every business has its own sales objectives to achieve. Sales management is a
continuous process to achieve these objectives such as increasing sales-
volume, market share, profitability, recognizing growth and building corporate
image. This only possible if the sales force is managed and adequately skilled
frequently which will update their skills and knowledge and will improve their
efficiency & effectiveness. At Indian Inc. the prime objective of the sales
management is to achieve Sufficient Sales volume, maintaining and increasing
the Profits regularly and experiencing Sustainable growth. In order to achieve
the objectives, Sales manager at Indian Inc. follows & implements various
principles which are as follows:
In B2B huge sales volume is been generated via single deal whereas the sales
volume is very less almost always limited to 1 or 2 pieces per consumer. In
order to generate enough sales revenue for the business, sales person needs
to identify and apply appropriate strategies in order to generate enough leads,
convert them into prospects and close the deals. There are various set
principles of sales management in order to efficiently generate revenues and
develop sustainable growth opportunities for the organization.
There are various types of sales structure which businesses adopt as per their
nature of business and the market situation. The manager at Indian Inc. gave
information about such types of sales structure along with the benefits. These
sales structures are as follows:
Customer size organizational structure: As per these the sales executive are
been divided into three segments namely Micro & Small business executives,
Mid-market business executives & large enterprise executives. According to
the experience and skills of the individual sales executive they are been
appointed in the segment and are been trained accordingly. This structure is
always used by businesses with very limited product/service line up. It helps in
to build and develop expertise in the executives and develop quality services.
The island structure: This structure is usually used by the start-ups and micro
& small enterprises where the availability of man power is very low such as
where an individual is responsible for all the steps right from lead generation
to closing the deal. One of the key benefits is that the process is kept simple
and very less managerial interventions. This also helps the individuals to
develop their skills and knowledge in a 360-degree approach.
There are various types of sales channel through which an organization can
reach out to its consumers. For instance
o Stockist
o Distributors
o Retailers
o Modern traders (Super Markets)
o E-commerce
o Affiliate sales
Indian Inc. has its operational offices at 16 states and manufacturing plant in 4
states i.e. Maharashtra, Haryana, West Bengal &Kerala. It uses various sales
channel for reaching out its targeted customers. It has 1 Stockist each in every
state of India for ensuring that the product is available 24*7 for its consumers.
To get a brief understanding about the sales channel the manager has given an
example of sales channel of Maharashtra state. For instance, all the products
manufactured are sent to the Stockist which acts as a warehouse for the
organization which is at Aurangabad & Kolhapur. There are 1 distributor each
at Mumbai, Navi Mumbai, Pune, Nashik and Solapur. This distributor then
forwards the received products to their respective selling partners for selling it
to the consumers i.e. Retailers (General stores & Stationery shops) & Modern
Traders (Super markets). Indian Inc. also Directly sells to the organizations via
distributors & super stockist on pre contractual basis. It also has its presence
on all the major & leading e-commerce platforms i.e. Amazon, Flipkart,
Alibaba, Snap deal, India Mart, Club factory, etc.
For Instance, in B2C selling the prime motive of the sales executive is to build a
strong retail network in its allotted area and to manage good customer
relationship with them and to manage their respective distributor for obtaining
maximum sales and ensuring smooth operations. For examples, sales executive
has to visit the assigned area as per the schedule and have a “meet and greet”
with the retailer and ensuring the availability of enough stock. They then need
to expand the retail network by visiting new areas and new stores. At Indian
Inc. sales executive research about the retailers and offer various discounts
schemes such as giving bigger margins i.e. 30% instead of 25%, giving
complementary free products i.e. 4pcs. of free books on purchase of 48pcs.,
giving extra amt. for money displaying their products at the front, etc. At
Indian Inc. creating and marinating a strong retail network is the key to its
successful sales revenue. By the above-mentioned ways, sales executives build
and develop successful and effective customer relations in order to ensure
healthy transactions.
There are various other schemes introduced by the management for ensuring
great amount of consumer attraction towards the products. This schemes
helps in to generate leads and persuade the potential buyers for buying the
products such as Bundle price strategy i.e. buy 1 book for ₹ 55/- or 6 books for
₹ 300/-, heavy discounts on all the stationery items while the starting period of
schools & colleges for ensuring huge footfalls, introduction of schemes that
offer different products and combining it in one set for sale i.e. a combine set
of books, pencil, eraser, scale, pen, geometry box, glue, sharpener and colours,
etc.
Whereas B2B selling is way more complicated and time oriented than B2C
selling. In B2B selling the target group are organizations itself ranging from
medium level to large & MNC’s. The prime motive of these organizations is to
avail the best quality of product at best price which will be used by the
organization to pursue their operations for their benefits. These organizations
have all knowledge about the offering products and the market price. In order
to generate sale revenues, we have to use various techniques and strategies.
As per various surveys only 17% of the entire B2B process is spent meeting
with clients whereas about 57% of the buyers already make up their mind
before contacting the supplier & only 29% of buyers want to talk to sales
executive about their products. While working in B2B segment of Indian Inc.
Sales manager are focused on creating partnerships with schools, colleges,
classes and various offices for directly selling their products to them. They
interact with these organizations and sell their products by partnering with
them and providing them products on contractual basis. They customise the
product as per the requirement (contract) requested by the organizations i.e.
company named envelopes and all the other office stationery products. For
ensuring healthy customer relations they ensure one-week delivery process,
frequent checks with the clients about the stock, ensuring zero defects and
best quality.
For acquiring new clients, the sales co-ordinator conducts frequent feedbacks
about the quality & delivery of the products and uses it as a testimonial while
pitching for new clients.
At Indian Inc. the sales manager evaluates the process and the techniques
applied by the management which is followed by the staff in order to identify
key gaps and introduce potential solutions or improvements to the same.
According to these the strategies and the performance of the employees are
been regularly evaluated in order to improve the efficiency and generate more
sales revenue.
As per the B2B sales techniques applied by the management executives are
been asked to approach education institution in order to generate sales
revenue. The organization has set process and techniques which are pre-
defined by the management. In order to understand the effectiveness of the
process, manager at the Indian Inc. conduct regular feedbacks from the clients
about the sales executives. This helps the manager to identify the performance
of the sales executive and provide guidance accordingly for improving the
efficiency and effectiveness of the executives.
There are various profit margins which needs to considered while analyzation
process such as Gross Profit Margins, Operating Profit Margins and Net Profit
Margins.
For instance, the manager has provided a sales data of 5 products of Indian Inc.
for the period of 3 months (Jan,2020 – March,2020) and has run an analysis of
the same for identifying the margins.
Indian Inc. recorded sales revenue of ₹ 288 cr. From 5 products i.e. Notepad,
Long Book, Copy Paper A4, Staples & Files for a period of 3 months (Jan,2020 –
Mar,2020). Gross profit for the same period stood at ₹ 162 cr. As well as the
Operating Profit was about ₹ 53 cr. The Net Profit for the quarter stood at ₹ 33
cr.
Present
The cycle starts with identifying potential leads that are best fit for the
products offered by the organization. This is followed by connecting to the
identified leads which can be done by researching about them and identifying
their key problems and provides relevant data for same. After providing with
the data and educating them about your info it’s time to check the potential of
the lead i.e. Interest & Resource to become ideal prospects of the organization.
Once identifying the ideal prospects for the organization it’s the moment to
pitch the prospects with the relevant data about the organization operations
solution to the identified problems. After this comes the stage where the
negotiation & persuading skills of the sales person is tested i.e. by overcoming
the objections and convincing the clients to close the deal. This is done by
properly listening to the obligations, understanding them & providing solution
for the same.
For instance, a big fashion retail brand named one8 was approached by the
sales person from Indian Inc. and had a almost closed the deal for the firm but
the competitor quoted better offer than the firm (Indian Inc.) for the same
deal. In order to tackle the situation, the sales person came up with innovative
solution that the firm (Indian Inc.) would provide all the promised products
with customised naming of the brand i.e. one8. These helped the sales person
to finally close the deal with one8.
Now one8 is one of the biggest clients of the firm and has refereed many other
clients which helped the business to grow its sales revenue. In order to
maintain such clients Key Account Management is used for building
relationships.
“Key Accounts Management means far more than just selling products to big
customers. It revolves around handling the customers who play a strategic role
in the growth of the supplier.” – Alex Short.
Key Accounts Management plays a key role in B2B business segment of Indian
Inc. for retaining an existing client. It focuses on maintaining and developing
relationships with the existing pool of key clients for maintaining smooth
transaction and develop mutual sustainable growth opportunities in future.
As per Vilfredo Pareto an organization 80% of revenues comes from 20% of the
clients & 20% of revenue is generated from 80% of the clients. In order to
maintain and prevent 20% of the elite pool of clients to switch towards
competitor’s account, that is where the Key Accounts Management comes into
picture. It is a strategy developed by organizations in order to develop great
relationships for growing its sales revenue. It has various benefits such as it
helps the supplier to generate potential prospects from the client’s referrals
with a better conversion opportunity; it helps to generate sales on regular
intervals from the client, etc.
At Indian Inc. we follow a 4-step plan to identify and resolve potential gaps to
ensure smooth operation of Key Accounts Management process such as:
As per the current scenario of the industry and changing dynamic factors of an
economy as a whole, the sales manager has developed 4 key strategies for
Indian Inc. which can help the organization to increase its sales figure and the
profitability numbers which is often refereed as a financial performance of an
organization.
o One of the key strategies is that management can cut business costs
which can increase the profits of the organizations. This can be done via
various ways such as negotiating with suppliers, reviewing and
effectively managing the cash flow management (loans & Overdraft
facilities), reviewing production facility by reducing waste and cost of
raw materials or by introducing latest technology, etc.
o One way to boost sales revenue and profitability is by targeting the
most potential customer of the business who can help boost profits.
This is done by segmenting customers under 4 groups i.e. High sales &
high profits, High sales & low profit, low sales & high profit and low sales
& low profit. In under these circumstances, sales persons can target High
sales & low profit and low sales & high profit group and develop various
price schemes for promoting sales revenue& profits.
o One way is that the top management can conduct market surveys and
via conducting various research and can identify potential markets
which can be explored by the business to expand or enter into new
markets for generating more sales and profits. This can be done via
developing the current product portfolio according to the demand which
will minimise the risk of expansion into new territories.
o Key way is to improve the productivity level of the employees within
the organization which will develop new standards of the quality of the
products and will directly affect the profitability of the business.
Profitability can be improved by making the optimal use of the available
resources. Setting goals for individuals which are measurable and
comparable can help to standardized the process and can be compared
with the industry standards.
This process helps the individuals to identify the 3 components of the sales
performance i.e. Where to sell, How to sell and What to sell. This process has
various sets of benefits which helps the manager as well as the team members
to identify key areas and develop it such as
o It helps to track various data and helps in to predict the future sales
trends.
o It helps the members to develop and build new skills in order to acquire
advance techniques to close deals more efficiently and effectively.
o This overall help to develop a strong sales team and also help to build
strong sales pipeline structure who posses’ efficient skills and are well
trained.
o This process also helps the organization to create performance-based
compensation structure which is aligned with overall business goals &
objectives.
1. Planning.
2. Monitoring.
3. Developing.
4. Rating.
5. Rewarding.
The process starts with setting specific goals for the employees and
communicating these goals with the desired output from them. Once the goals
are been assigned these employees are been monitored for a specific period of
time at Indian Inc. these is a continuous process which is done every monthly.
Once the period is completed the data is been complied and monitored and is
been analysed in order to identify the key improvement area for enhancing the
performance of the employees. Every employee is been rated on a scale of 5
on monthly basis and is compiled every quarter. At the end of every quarter
the employees are recognised on the basis of their performance and are been
rewarded accordingly.
Association, C. P. (2020, 05 08). What is the difference between B2B and B2C
sales? Retrieved from Canadian Professional Sales Association:
https://www.cpsa.com/resources/articles/what-is-the-difference-between-
b2b-and-b2c-sales
Castleberry, S. &. (2011). Selling: building partnerships. 8th ed. New York.:
McGraw-Hill. .
Hinterhuber, A. &. (2016). Pricing and the sales force. . New York: Routledge.
Jobber, D. &. (2009). Selling and sales management. 8th ed. Essex: Pearson
Education Limited.