Exercise on Sales Forecasting

Sales and Distribution Management

Section- B

Submitted To:

Prof. Suresh G
Faculty - SDM

Group Members:

Ashish Mittal (09BSHYD0183)

Gaurav Saxena (09BSHYD0291)

Parth Seth (09BSHYD0558)

Saurabh Mathur (09BSHYD0752)

Saurabh Minocha (09BSHYD0753)

Swaha Ganguly (09BSHYD0900)

Indian Corporate Training Industry: An Overview

The Corporate Training Industry in India has acquired new dimensions in the recent past. Training
has come out of the HR closet and evolved to become an effective business tool. More than an
employee retention tool, training has evolved to become a critical business enabler for effective sales,
leadership, relationship building, increased production, etc; it is increasingly being linked to business
outcomes.

The Indian Corporate Training Industry is estimated at about Rs. 5000 crores, and promises a
massive growth potential. But the industry is hugely fragmented, dominated by individuals and
private consultants. The large presence of MNCs in the country and the increasing popularity of
Hybrid delivery models (like VSAT/ e-learning/ online mentoring) have fueled the growth of this
industry.

Indian Corporate Training Industry is large and lucrative as India is one of the fastest growing
economies in the world with a huge skill gap. India suffers from a gap in the mid-to-entry-level
talent, rather than senior management. Hence Indian Corporate Training market is also skewed
towards training mid-to-entry-level employees. However the offerings at the entry/mid level
Corporate Training remains highly disorganized and unstructured.

SHARE HOLDING PATTERN OF THE COMPANY:

Knowise Learning Academy is a private company and as such the shares of the company are held by
the two directors of the company:

Mr. Karthick C S (50%); and

Mr.Rishab Lunia (50%)

Analysis of Macro-economic Environment: PESTEL

1. Political stability – Indian political structure is Positive

considered stable enough.

Political 2. War Negative

3. Currently only 400 million people have

undergone skill development (2% of total Very Positive
population) whereas the Government has set a
target of 500 million by 2022 thus making skill
development a merit service.

1. Large and growing domestic market. Positive

2. 300 million strong consuming class and growing Very Positive
at 6% per annum.
Positive
Economic 3. Relaxed FDI regulations.
4. Currency fluctuations. Negative
5. Economic attractiveness due to low labour cost Very Positive
and other advantages. Positive
6. Steady economic reform regime.

1. Among largest pool of English speaking Highly Positive

population.
2. Only 2% of Indian population has undergone skill
Social training, one of the lowest in the world, thereby Highly positive
providing huge opportunities for the growth in
the corporate training industry.
3. Working age population. Positive
 1. Internet backbone: due to IT revolution of 90s,
Indian cities are well connected.
Positive
Technological 2. New IT technologies enabling high definition
content and innovation in low cost technologies
Positive
are providing better opportunities to the Indian
Corporate Training Industry.

1. Energy efficient processes and equipments are

being used as companies are focusing on reducing
Positive
carbon footprints, energy utilization, etc.
Environmental
2. Growing opportunities for the carbon credit
Very Positive
market and consultancies for this market.

1. Services like corporate training attract a service tax of Mildly

12.36%. (Service Tax 12% + on the service tax 2% education Negative
Legal cess + another 1% higher education cess.

2. Regulations related to trade and joint venture/

partnerships with foreign companies are specific to local
environment. Mildly
Negative
 Analysis of Micro-economic Environment: Porter’s Five Forces Model

Threat of Substitutes: MEDIUM

 Corporates may switch to in-house

training by outsourcing their
training.

 Individual requiring training doesn’t

have options other than the training

Bargaining power of Bargaining power

Rivalry among Firms: HIGH of customers:
supplier: MEDIUM
HIGH
 Commoditized offerings.
 Specialized
trainers with good  Low cost, little  Large number
domain differentiation of training
knowledge and positioning. firms.
expertise.  High industry growth.
 Vast pool of  Large number of
trainers available. competitors.

Barriers to Entry: MEDIUM

 Low capital requirements.

 Monopolistic competition- many
market players.
 Players have very less market power.
 Takes time for a new entrant to
achieve economies of scale.
COMPANY: Knowise Learning Academy (P) India Ltd.

SALES ORGANOZATION STRUCTURE:

n
a
o
i
l
g
r
t
R
e
T
s
r
e
P
g
l
o
a
n
S
V
m
M
)
t
e
g
h
u
o
s
a
r
1
2
S
m
W
(
n
M

Purposes of Current Forecast:

 To identify the training programs

 To identify the demand for them (program wise and area wise) and set targets.

The company follows top down approach as the training needs and demands for the technical
programs of the BFSI sector are identified by the senior level and communicated down the line.

Target Setting:

 The demand is identified mainly through secondary data – based on people applying for the
various courses for which the company provides training.
 Area wise – the company takes into consideration the number of professionals and business
organizations operating who would require such training.

Methodology:
The planning process followed by Knowise is: LE (Latest estimates) - it is the current understanding
of the most likely outcome for the forecast period .

Objective of Latest Estimate (LE) technique is to plan volume (quantities) and the following Profit
& Loss and Balance sheet items for each program over the next 12 to 14 months (current Quarter
plus 4 Qs): Net Sales, Gross Margin, and Volume planning. In Knowise this is called as STP
planning (Short term planning). To obtain the Latest Estimates, a qualitative tool adopted by the
company is Sales Force Composite (In this method, each salesperson for particular account in
PRODUCT selling estimate sales. Company sales forecast is made up of all salespersons sales
estimate and all the Account sales estimates).The Long Range Forecast (LRF) is part of Long Range
Planning (LRP) process. Its objective is to estimate the value of business for the current +3 years
(strategy period), to be used as a basis for strategic and longer term business portfolio decisions.