Sales

And
Retail Management
Project

Done by .
25/52/1540 BC

Ye bs Sales management ka h..retail

managemet ka bd me add kr dege.. pehle
dkh lo..
Lebanese International University
Lebanon
Bekaa Campus
Contents
Introduction…………………………………………………………………………………………………………………………
Sales Management………………………………………………………………………………………………
Retail Management………………………………………………………………………………………………..
History........................................................................................................................................6
Toyota’s “Marketing Mix”..........................................................................................................8
Products (Product Mix):..........................................................................................................8
Price:.......................................................................................................................................8
Place:......................................................................................................................................9
Promotion:..............................................................................................................................9
Segmentation:..........................................................................................................................10
Need Discovery........................................................................................................................10
Selling Points............................................................................................................................10
Situational Analysis..................................................................................................................11
STRENGTHS:..........................................................................................................................11
WEAKNESSES:.......................................................................................................................11
OPPORTUNITIES:...................................................................................................................11
THREATS:..............................................................................................................................11
Positioning................................................................................................................................11
Differentiation..........................................................................................................................11
Competitors..............................................................................................................................11
Interview..................................................................................................................................12
Questionnaire...........................................................................................................................13
Results of the questionnaire................................................................................................14
Conclusion................................................................................................................................14
Methods used for the project..................................................................................................14
Illustration Graph.....................................................................................................................15

1
Sales Management
Sales management is the process of developing a sales force, coordinating sales
operations, and implementing sales techniques that allow a business to consistently hit,
and even surpass, its sales targets.

If your business brings in any revenue at all, a sales management strategy is an absolute
must. When it comes to boosting sales performance for any size of operation, no matter
the industry, the secret to success is always precise sales management processes.

Besides helping your company reach its sales objectives, the sales management process
allows you to stay in tune with your industry as it grows, and can be the difference
between surviving and flourishing in an increasingly competitive marketplace.

Whether you’re an experienced or new sales manager, you should be able to evaluate and
gain visibility into your current sales force with the following guide to sales management.

Once you have a clear picture of what processes to monitor and how to keep track of
them, you’ll be equipped to pinpoint issues early on, coach people before it’s too late, and
have a better overview of the tasks the team should be doing to increase its sales.

If you’re a sales rep who happened to stumble upon this guide out of curiosity, you’re
already winning.

This guide will give you an understanding how your company's sales process is managed,
allowing you to become more in sync with your team, create a better relationship with
your manager, and achieve better sales results yourself.

Overall, sales management will help businesses and their workers better understand
results, predict future performance, and develop a sense of control by covering the
following three aspects.

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Importance of Sales Management
Sales management is very crucial for any organization to achieve its targets. In order to
increase customer demand for a particular product, we need management of sales.

The following points need to be considered for sales management in an organization −

 The first and foremost importance of sales management is that it facilitates the
sale of a product at a price, which realizes profits and helps in generating revenue
to the company.

 It helps to achieve organizational goals and objectives by focusing on the aim and
planning a strategy regarding achievement of the goal within a timeframe.

 Sales team monitors the customer preference, government policy, competitor

situation, etc., to make the required changes accordingly and manage sales.

 By monitoring the customer preference, the salesperson develops a positive

relationship with the customer, which helps to retain the customer for a long
period of time.

 Both the buyers and sellers have the same type of relationship, which is based on
exchange of goods, services and money. This helps in attaining customer
satisfaction.

Sales Management may differ from one organization to the other, but overall, we can
conclude that sales management is very important for an organization for achieving its
short- and long-term goals.

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Retail Management
The various processes which help the customers to procure the desired merchandise from
the retail stores for their end use refer to retail management. Retail management includes
all the steps required to bring the customers into the store and fulfill their buying needs.

Retail management makes shopping a pleasurable experience and ensures the customers
leave the store with a smile. In simpler words, retail management helps customers shop
without any difficulty.

“Retailing includes all activities involved in selling goods or services to the final
consumers for personal, non-business use.” - Phillip Kotler

Any organization that sells the products for consumption to the customers for their
personal, family, or household use is in the occupation of retailing

Functions of a Retailor
Retailor provides the goods that customer needs, in a desired form, at a required time and
place.

 A retailor does not sell raw material. He sells finished goods or services in the form
that customer wants.

 A retailer buys a wide range of products from different wholesalers and offers the best
products under one roof. Thus, the retailor performs the function of both buying and
selling.

 A retailor keeps the products or services within easy reach of the customer by making
them available at appropriate location.

Need for Retail Management - Why retail management ?

Peter wanted to gift his wife a nice watch on her birthday. He went to the nearby store to
check out few options. The retailer took almost an hour to find the watches. This irritated
Peter and he vowed not to visit the store again.-An example of poor management.

You just can’t afford to make the customer wait for long. The merchandise needs to be
well organized to avoid unnecessary searching. Such situations are common in mom and
pop stores (kirana stores). One can never enjoy shopping at such stores .

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Retail management saves time and ensures the customers easily
locate their desired merchandise and return home satisfied.

An effective management avoids unnecessary chaos at the store.

Effective Management controls shopliftings to a large extent.

 The retailer must keep a record of all the products coming into the store.
 The products must be well arranged on the assigned shelves according to size,
colour, gender, patterns etc.
 Plan the store layout well.
 Don’t keep the customers waiting.
 Make sure the sales representatives attend the customers well. Assist them in their
shopping. Greet them with a smile
 The retailer must ensure enough stock is available at the store.
 Make sure the store is kept clean. Don’t stock unnecessary furniture as it gives a
cluttered look to the store. The customers must be able to move freely.
 The store manager, department managers, cashier and all other employees should
be trained from time to time to extract the best out of them. They should be well
aware of their roles and responsibilities and customer oriented. They should be
experts in their respective areas.
 The store manager must make daily sales reports to keep a track of the cash flow.
Use softwares or maintain registers for the same.
 Remove the unsold merchandise from the shelves. Keep them somewhere else.
 Create an attractive display.
 Plan things well in advance to avoid confusions later on.
 Ask the customers to produce bills in case of exchange. Assign fixed timings for
the same. Don’t entertain customers after a week.

5
History
The history of Toyota started in 1933 with the company being a division of Toyoda
Automatic Loom Works devoted to the production of cars under the direction of the
founder's son, Kiichiro Toyoda had traveled to Europe and the United States in 1929 to
investigate automobile production and had begun researching gasoline-powered engines
in 1930.
Toyoda Automatic Loom Works was encouraged to develop automobile production by
the Japanese government, which needed domestic vehicle production, due to the war with
China. Kiichiro Toyoda seized this opportunity to establish the Automotive Production
Division on September 1, 1933, and began preparing to build prototype vehicles. In 1934,
the division produced its first Type A Engine which was used in the first
Model A1 passenger car in May 1935 and the GI truck in August 1935.
Production of the Model AA passenger car started in 1936. Early vehicles bear a striking
resemblance to the Dodge Power Wagon and 1930's Chevrolet, with some parts actually
interchanging with their American originals.
Although the Toyota Group is best known today for its cars, it is still in
the textile business and still makes automatic looms, which are now computerized, and
electric sewing machines which are available, worldwide.
After World War II, Japan experienced extreme economic difficulty. Commercial
passenger car production started in 1947 with the model SA. The company was on the
brink of bankruptcy by the end of 1949, but the company eventually obtained a loan from
a consortium of banks which stipulated an independent sales operation and elimination of
"excess manpower".

The "Five Main Principles of Toyoda" are a written statement of the teaching of
Sakichi Toyoda the Founder of Toyota Group. [ CITATION Toy \l 1033 ]

- Always be faithful to your duties, thereby contributing to the Company and to the
overall good.

- Always be studious and creative, striving to stay ahead of the times.

- Always be practical and avoid frivolousness.
- Always strive to build a homelike atmosphere at work that is warm and friendly.
- Always have respect for spiritual matters, and remember to be grateful at all times.

6
Toyota India history

Toyota Motor Corporation entered India in 1997 in a joint venture with the Kirloskar

Group. Toyota Motor Corporation (TMC) holds 89% of the share and the remaining
11% is owned by Kirloskar Group. It is based in Bidadi, Karnataka, India,
near Bangalore.

Toyota India is responsible for handling manufacture and sales of Toyota cars in India,
and it presently ranks amongst the top 6 car-manufacturers in the country together with
Maruti Suzuki, Hyundai, Tata, Mahindra and Chevrolet. Besides bringing along its parent
company's cutting-edge technology and innovative production philosophy involved in
manufacture of cars, Toyota India has also carried forward TMC's legacy of employing
eco-friendly production techniques, creating new employment opportunities for the
country's youth, playing a notable part in social welfare and always "Putting Customer
First".
 
Both the manufacturing units that Toyota owns in India are situated in Karnataka, one in
Bidadi and the other on the outskirts of Bangalore. While the 432 acres Bidadi plant had
an initial annual production capacity of 80,000 vehicles, the Bangalore unit could
manufacture as many as 70,000 vehicles in a year, which together brought the total
production capacity of Toyota in India to 150,000 per annum. In March 2011, this
manufacturing capacity was stepped up to 210,000 vehicles per year in order to cater to
the increasing demand for Toyota cars, particularly the Etios and the Fortuner, in the
country. As far as the dealership network is concerned, more than 181 dealerships
covering over 96 Indian cities across 22 states and 3 Union Territories together make up a
remarkable dealership network for Toyota in India.

7
Toyota’s “Marketing Mix”

Products (Product Mix):

Toyota has a diverse set of products. This element of the marketing mix identifies
organizational outputs for the target customers. The following are the product lines in
Toyota’s product mix:

 Toyota automobiles
 Lexus automobiles
 Welcab series
 Marine products
 Spare parts and accessories
 Engines

Toyota automobiles are the most popular in this product mix. Lexus automobiles are
luxury products from the company. On the other hand, the Welcab series are Toyota
automobiles modified for the elderly and people with disabilities. The company also
manufactures yachts, engines, and spare parts and accessories for automobiles and marine
products. This part of the marketing mix shows that Toyota reaches a wider market and
reduces market-based risks through a diverse product mix.

Price:
Toyota’s prices vary widely, depending on the product line and the product type or
model. This element of the marketing mix identifies how the firm sets the prices of its
products. Toyota uses a combination of the following pricing strategies:

“Market-oriented pricing, Value-based pricing”.

Toyota uses the market-oriented pricing strategy to determine prices based on market
conditions and the prices of competitors. This pricing strategy is notable in the vast
majority of Toyota products, such as sedans and trucks. However, the firm also uses the
value-based pricing strategy, which sets prices based on the actual and perceived value of
the product. The company uses value-based pricing for high-end or more expensive
products, such as the Prius and Lexus cars. This part of Toyota’s marketing mix shows

8
that the company determines price levels based on market conditions and customers’
perceptions

Place:
Dealerships are Toyota’s main places for distributing its products. This element of the
marketing mix determines the venues where customers can access the firm’s products.
The following are the main places in Toyota’s distribution strategy: “Dealerships,
Retailers”

Toyota dealerships are where most sales transactions occur. However, some retailers like
auto supply stores also sell the company’s products, such as spare parts and accessories.
This part of the marketing mix shows that Toyota relies heavily on dealerships to sell its
products to the target market.

Promotion:
Toyota’s promotion strategy covers all the tactics of marketing communications. This
element of the marketing mix pertains to how the firm communicates with the target
market. 

Toyota uses personal selling through dealerships’ sales personnel, who personally
promote products to potential buyers. The company also uses advertising on various
media, such as TV, newspapers, and websites. In addition, the firm promotes its products
through public relations, such as the Toyota TogetherGreen program that supports
environmental initiatives, and the Meal per Hour program that donates food to Food
Bank. These public relations activities create a positive brand image for Toyota. On the
other hand, infrequent sales promotion is used through special deals. Also, the
company sometimes uses direct selling for corporate clients. This part of Toyota’s
marketing mix indicates that the company has a comprehensive strategy for promoting
its business and products.

9
Segmentation:
How do Toyota Choose its Customers “Target Market”?

The STPi of Toyota cars is based on the "care" of its users and it can be clearly seen in its
variety of offers and product attributes.

Currently Toyota is focusing on two segmentations:

 Demographic Segmentation
 Psychographic Segmentation

In the first segment of Demographic, Toyota has targeted the family size and in this segment
people of Upper Middle High Income group is kept in view by Toyota. Land Cruiser,
Fortuner,Innova crysta, Camry is some major cars of this segment which are designed for
those who have the willpower and buying power to purchase these cars.

In the second segment of Psychographic, Toyota has targeted the family size and in this
segment people of the high class, a high income group who have sporty attitude, is kept in
view by Toyota such as Toyota Altis Sport model and Toyota Fortuner. These sports cars that
helps in improving and exhilarating their sense and passion for sports. SUV ii, MUViii and
Sedan are its examples

Need Discovery
As we noted before, Toyota relies strongly on Personal Selling as a promotional tool used by
selling personnel of Toyota’s distributers around the globe, so the Need in this case will be
discovered through a questions to the clients. Through an interview with the Sales Manager
of BUMCiv we have got two basic questions they ask to their clients:

 What type of cars do you prefer? Luxury, Sport, SUV, MUV?

 How much money you managed to pay for a car of Toyota?

10
Selling Points
In India, Toyota has 338 branches, and 4 in Jharkhand :

 Ranchi.
 Jamshedpur.
 Dhanbad and Bokaro.

Situational Analysis

STRENGTHS:
The company is one of the world's best known brands with their experience which cannot be
overemphasized in the terms of manufacturing. Strength is that their product list is diverse
with wide variety of segments for the customers to choose from which could fit their lifestyle.
They are the moving assembly line pioneers which made their production very affordable as
well as faster and efficient. The company's international exposure makes the company the
second largest automaker in the world.

Toyota also uses low cost to try and gain a competitive advantage in the automotive industry.
“Toyota is (or was at the time) the low cost producer in the industry. Toyota achieves its cost
leadership strategy by adopting lean production, careful choice and control of suppliers,
efficient distribution, and low servicing costs from a quality product.”(Michael E. Porter)
This quote from Michael Porter sums up how Toyota achieves this low cost strategy

WEAKNESSES:
Toyota’s main weaknesses are as follows:

 Hierarchical organizational structure

 Secrecy in organizational culture
 Effects of product recalls in recent years

Toyota’s global hierarchical organizational structure prevents maximum flexibility of

regional operations. Also, the company’s culture of secrecy is a weakness that reduces
response times in addressing emerging problems. In addition, Toyota implemented massive
product recalls starting in 2009. These recalls weaken the firm because the recall processes
consume business capacity that could be used for product distribution instead. 

11
Through the interview with the Sales Manager of BMUC Company, he told us that one of
their weaknesses was both of Toyota And Lexus cars has the same maintenance garage in
Beirut Hazmieh Branch, but now they separated each one to its maintenance garage.

OPPORTUNITIES:
Toyota Company according to their corporate responsibility to be environment friendly, made
the opportunity to keep cleaner engine emissions. They further had a chance of create a great
image in the public with the help of environmental group works in order to keep the
environment clean. There is one great viable prospect for the company where they already
started investing in solar power. The company has a chance to regionalize and specialize their
worldwide operations which could enhance their transnational linkages. The company's
existing innovations capabilities on automobiles will make them have an opportunity to make
good scope in the market other than the competitors.

THREATS:
Very tight competitive rivalry is being running in the automobile industry and so Toyota
faces the same as any other organizations. The company is also affected by risks of prices
change of the raw materials like fuel, rubber, glass and steel. The economies in the Pacific,
Europe and US are also showing slowdowns. Analysis shows that these are active threats to
the company financially. Foreign competitive activities have been largely been affected by
the company due to the overall position in the industry worldwide.

Positioning
Toyota’s uses both differentiation and low cost as generic strategies to try and gain a
competitive advantage over their competitors in the automotive industry. The market scope
that Toyota uses is a broad one that encompasses nearly every type of customer that is in the
market to purchase an automobile. Toyota is able to target such a large market because they
have something for everyone. Toyota has four wheel drive trucks and SUVs for the outdoor
types or those who live in areas that face severe weather conditions, hybrid models like the
Prius for the eco-friendly customers that are interested in saving the environment, along with
the standard cars for general, everyday use. Additionally, Toyota provides vehicles for all
price ranges. From the low price Toyota Corolla line of cars to the high priced luxury line of
cars and SUVs with Lexus, Toyota has something for everyone.

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Differentiation
Toyota differentiates on several levels form their competitors. First of all, Toyota has been
very successful in differentiating on the basis of superior design and quality. This has led to
Toyota being able to create a brand image that is very strong and one that brings to mind
quality, long lasting cars when a potential customer sees it. The strength of Toyota’s brand
image has been seen in recent years with the recalls and problems Toyota faced in dealing
with these recalls. Toyota was able to survive these problems because they had such a long
and proven track record of quality and superior. Another, area that Toyota differentiates is in
technology. Toyota was the first successful mass produce the hybrid car on the market when
it released the Prius in 2003. Being the first to get their hybrid on the market allowed Toyota
to gain a large portion of the market share in the area of hybrid cars.

Competitors
Toyota faces strong competition from all angles, and is facing a very tough market from other
Japanese, American, South Korean , Indian and German auto manufacturers. Toyota is
working hard to set itself apart from the competition in more than one way, however. Since
Toyota products have a reputation for reliability, the added value of their vehicles after sale
tends to be much higher than many other producers.  The most serious threat to Toyota is
widely considered to be Honda Motor Company. However, Toyota has done some substantial
work on their products and price points to stay competitive against Honda.

Interview
Through an interview with Mr Mohammad Hamada, the sales manager of BMUC Company
in Delhi, we asked him few questions as the following:

 Q- As an exclusive cars dealer for Toyota Group in Lebanon, How do you rank your
company in the cars market in Lebanon?
A- Toyota has been ranked as number one car manufacturer in 2015 and that gives us
a strong help to face our competitors in the Lebanese Market which are the
Korean Car manufacturers Hyundai and Kia, because in the Lebanese market the
most important criteria the customers ask for is the economical car, and we use a
strategy for pricing a little bit more for more benefit than others, and with our

13
 strong added value after sale we gain a nice market share in the Lebanese cars
market.
 Q- How do you know what does your customer need?
A- Our sales personnel asked two basic questions in order to give the appropriate
help and care for our customers.
1- What type of cars do you prefer? Luxury, Sport, SUV, MUV?
2- How much money you managed to pay for a car of Toyota?
 Q- How do BMUC market its Cars?
A- Through a set of promotional tools known as Promotional Mix, we use advertising
as a main tool to promote our cars and our innovative sales promotions and
services on TV, billboards and magazines. And we have well-trained and
experienced sales personnel we can get in touch with our customers and give an
extraordinary service to our customer.
 Q- Is there any Car that didn’t fit with the Lebanese market?
A- As a cars dealer in Lebanon, we import the well tested and new cars that gained
strong global market share, so we didn’t face such a problem in the Lebanese
market, but I can say that the numbers of our Luxury cars sold in Lebanon, not as
planned due to the economic situation in Lebanon. [ CITATION Ham15 \l 1033 ]

Questionnaire
What type of car do you prefer?

1. BMW
2. Mercedes
3. Toyota
4. Hyundai

What is your perception about Toyota automobiles product?

1. Very Good
2. Good
3. Average
4. Bad

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What about the price of Toyota Cars?

1. Highly priced
2. Moderate – Average priced
3. Low priced

Do you think that the cars of Toyota are capable to attract today’s Generation?

1. Yes
2. No
3. I don’t know
4. I Don’t think that

What is the best thing in Toyota cars?

1. Quality
2. Design
3. Service
4. Price

If you are going to be a customer of Toyota cars in the future, what will be your expectation?

1. More variety of cars

2. Improved quality car
3. Higher value than others
4. More added value after sale

What you can say about the consumption of fuel of Toyota cars? “Open question”

Results of the questionnaire

Out of the survey we did on a sample of 30 people, we have got the following results:

1. 40% of the sample does prefer Toyota Cars than other cars such like Mercedes and
BMW, and we think that it is a positive percentage if we want to compare Toyota
with its competitors.
2. 90% Have a Very good perception “General” about Toyota cars which reflect to us
the great Brand image Toyota has made in the market
3. For the issue of the Toyota’s price, 50% thinks that Toyota has an average price in
compare to other cars in the market.

15
 50% think that Toyota prices are very high, and if we want to have an outlook of these
results, it does make a sense really because Toyota has the luxurious products such as
Lexus which has a very high price, on the other hand there are another cars of Toyota
has the average price such like Camry And Corolla.
4. 76% of the sample thinks that Toyota is able and working towards attracting the new
generation with its high speed and sports cars.
5. 63% said that the best characteristic of Toyota cars is its Quality, while 30% said
Service which mean the nice features that Toyota offers in its cars such like the air
bags, Surround system, comfortable seats… etc. 7% preferred the price and the design
of Toyota cars.

Conclusion
As a conclusion for our project, we saw that Toyota Cars is using the most recent and known
sales techniques that makes the company number one car manufacturer in the world with
About 9 million car sold around the world in 2015, and a strong car in the Lebanese market
represented by BMUC company as an exclusive car dealer for Toyota in Lebanon.

Methods used for the project

 An interview with the sales manager of BMUC Company Mr. Mohammad Hamada.
 Toyota Global Financial statement.
 Internet and Books.
 Questionnaire done with sample of work people.

Illustration Graph

Vehicles sales by Toyota in FY20

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