Registration Number : MSc 16-33-804

Student Name : Thimila Weerahandi

Module Title : Sales Management

Study Centre : Strategy College – Sri Lanka

By submitting this assignment I confirm that I understand and abide by the Strategy’s plagiarism and collusion
regulation

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 Table of Contents

Task 1.
a.) Company Overview ……………. 03

b.) Sales Management Competencies ……………. 06

Task 2.
a.) Organization Sales Management Structure ……………. 12

b.) Organization KPI’s and Motivational tools Analysis ……………. 15

c.) Skills for Sales Management member ……………. 16

Bibliography ……………. 18

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Task 1

a). Company Overview

“National Mobile Service

Provider”

Commencing operations in 1993, Mobitel was one of the foremost mobile service
providers in Sri Lanka, beginning operations using first generation cellular technology -
Advanced Mobile Phone System (AMPS)/ Time division multiple access (TDMA). In
October 2002, Mobitel became a fully-owned subsidiary of Sri Lanka Telecom. In the
following years Mobitel grew from strength to strength, launching its fully-fledged
EDGE/GPRS enabled 2.5G GSM network, which is designed to operate on dual band in
2004. Mobitel was also the first service provider with a super 3.5G network in South Asia.
Furthermore, Mobitel successfully demonstrated HSPA + MIMO technology with
downlink speeds of up to 28.8 Mbps and carried out a successful trial of 4G/LTE
technology with downlink speeds exceeding 96 Mbps, for the first time in the South Asian
region.

Source – www.mobitel.lk

Brand Personality Smart People

Brand Equity Mobitel Provides quality, accessible, innovative mobile and

network solutions.

Market Share 24.2 %

Relative Market Share 0.54

Mobitel Subscribers 5900000

Revenue (2015) 32.56 (Rs. Billion)

Revenue Growth Rate 6.41 %

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 Revenue Growth

Figure 1: Revenue Growth for Mobitel. Source: SLT Annual Report 2015

Product Mobitel provides mobile services, Broadband, Data Services,

and Mobile Phones.

Core Product Mobile Operator

Services Offered - Prepaid & Postpaid voice, data packages

- Value Added Services ( M cash, M taxi, M ticketing,

Mobile banking, e channeling, SLT directory access)

- Data Services (News Alerts, M adverts, Tips &

Learning, Dictionary)

- IDD facility (IDD calls & SMS,MMS, Roaming)

- 3G video calling

- Broadband services

- “Upahara” special benefitted package for government

workers

- Business Solution

- Online Store

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 Current market situation

Dialog remains as the market leader and mobitel has gained the second place in the market.

Figure 2: Mobile Market Situation. Source: GSMA Intelligence report

SLT Mobitel one of the lowest in call charges in the county which is having tough
competitors in the firm such as Dialog, Etisalat, Airtel and Hutch.
Strengths - Fully owned by Sri Lanka Telecom

- Strong distribution network spread through the entire

island

- Constant rise in the share prices has gained the

confidence of the investors leading to value increment

- Higher customer satisfaction rate is maintained (91%)

- Joint Marketing campaigns with SLT

- Strong Public Relationship

Weaknesses - Lesser services are provided to compete with the

leader

- Quality of service is not maintained

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 b). Sales Management Competencies

Strategic technique used to evaluate outside competitors. The analysis seeks to identify
weaknesses and strengths that a company's competitors may have, and then use that
information to improve efforts within the company. An effective analysis will first obtain
important information from competitors and then based on this information predict how the
competitor will react under certain circumstances.

(http://www.businessdictionary.com/definition/competitor-analysis.html)

A critical part of your company marketing plan is “competitive analysis”. With this
estimation, you can create what makes your product or service unique and therefore what
characteristics you play up in order to interest your target market.

For each competitor list their product or service, its profitability, market growth, marketing
decisions, organizational behavior and structure, strengths and weaknesses, of the
competitor's business. Answer questions such as:

 Who are your competitors?

 What products or services do they have?
 What is each competitor's market share and growth?
 What are their past and current strategic decisions?
 What type of marketing methods are used to promote their products or services?
 How many hours per week do they purchase to advertise through the media used in
this market?
 What are each competitor's strengths and weaknesses?
 What possible threats do your competitors pose?
 What possible opportunities do they make accessible for you?

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 Let’s now discuss porters five forces analysis for Sri Lanka Mobitel to evaluate the sales
management competencies.

What are 'Porter's 5 Forces?

Porter's Five Forces model, named after Michael E. Porter, identifies and analyses five
competitive forces that shape every business, and helps determine an industry's weaknesses
and strengths. These forces are:

1. Competition in the industry

2. Potential of new entrants into the industry

3. Power of suppliers

4. Power of customers

5. Threat of substitute products

Figure 3: porter’s 5 forces chart. Source: https://www.linkedin.com/pulse/porters-five-forces-analysis-kartik-karan

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Bargaining Power of Customers
The supremacy of the customer is considered as a crucial factor since this cause to

- Drive the prices down by exerting pressure over the organization

- Uplifting the quality of the service for the same price
- Price elasticity factor
- High degree of brand equity

Bargaining Power of Suppliers

The ability of the suppliers of the company to influence the setting of prices to capture more
industry profit.

- Mobitel is a subsidiary company of Sri Lanka Telecom PLC. Therefore SLT have an
upper influence and supplier bargaining power over the company.
- The industry perspective factor.

Threats of New Entrants

Due to higher amount of industrial profitability, threats of New Entrants in
Telecommunication industry is comparatively high. That directly impacts to all the current
telecommunication operators in the market by making their business profitability in to risk as
they may have to experience profit reductions.
As an example it identified that Bharti Airtel could able to achieve one million of customer
base in Sri Lanka within 171 days of the launch of its services in Sri Lanka. Several value
added services plus low price package introduction for different age categories Airtel could
able to grab the customer base of other mobile telecommunication operators’ in the industry
aggressively. However currently the rivalry caused by new entrance with attractive lower
service charges was controlled by Tariff Regulation policy of Telecommunication Regulatory
Commission of Sri Lanka (TRCSL) as in its Proposed Ten Year Development Plan 2006 –
2016.

Threats of new substitutes

A crucial factor which affects a company’s stability in the market by significantly influencing
to the profit acquiring process of the company.

This factor activates when the price fluctuations of substitute products which may leads to
degrade the customer base of the company by allowing customers to move for substitutes.

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Rivalry within an Industry
Rivalry among Competing Firms Due to higher amount of competency in Sri Lankan mobile
service industry each and every operator has to experience, extreme level of industry
competition to be steady in the market.
Mobitel try its best to give different types of value added services to overtake their rivals.

 Let’s now discuss SWOT analysis for Sri Lanka Mobitel to evaluate the sales
management competencies.

What are SWOT analysis?

SWOT analysis is a process that identifies the strengths, weaknesses, opportunities and
threats of an organization. Specifically, SWOT is a basic, analytical framework that assesses
what an organization can and cannot do, as well as its potential opportunities and threats. A
SWOT analysis takes information from an environmental analysis and separates it into
internal strengths and weaknesses, as well as its external opportunities and threats.
(http://www.investopedia.com/terms/s/swot.asp)

Once the SWOT factors are identified, decision makers should be able to better determine if
the project or goal is worth pursuing and what is required to make it successful.

Figure 4: SWOT Analysis. Source: https://www.kvrwebtech.com/blog/understanding-swot-analysis-need-business/

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Strengths

 Mobitel has the second highest market share of GSM technology in Sri Lanka.
 Due to its strong infrastructure it has got one of the best and far reaching mobile
telecommunication coverage.
 Fully owned by Sri Lanka Telecom.
 Mobitel Telecom has a good Brand Equity.
 Continuous market growth
 Company’s financial analysis proved excellent stability in financial statements
regarding investments.
 Strong Public Relationship that has been built up over the years.
 Expanded CSR initiatives increased the social value of the firm.
 Introducing Near Field Communication (NFC) Technology in Sri Lanka first time.
 Constant rise in the share prices has gained the confidence of the investors leading to
value increment.
 Strong distribution network spread throughout the entire island.
 Well managed customer care support techniques have increased the level of Customer
satisfaction, which is 91%.

Weaknesses

 Poor online advertising methods and confused advertising on their new products.
 Customer dissatisfaction on poor strength signals in mobile broadband.
 The level of motivation of internal employees is decreasing.
 Competence with rivalry products are in a very slow process.
 Less buying facilities in online store.
 Availability of value added services are not quite enough to compete with others

Opportunities

 Telecom is one of the fastest growing sectors in Sri Lanka’s 20.4 million people. As
per estimations 117% mobile subscribers have mobile phones by the end of 2015.
 The communication industry is growing rapidly with very fast introduction of new
Technology in South Asia.
 The “upahara” special government servant’s package has rapidly grown up the mobile
subscriber base.
 The strategic partnership of Mobitel Telecom with ZTE Corporation and Huawei
Technologies in China.

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Threats

 The existence of all the other for GSM Mobile service providers poses a big threat to
Mobitel.
 Etisalat has come near to Mobitel market share through, introducing low cost data
packages to prepaid customers.
 The three existing CDMA service providers also pose a different kind of threat.
 Rapid changes in the political, social and economic conditions as well as the laws and
regulations.
 Changes in currency exchange rates and high inflation which is inversely affected last
year revenue.

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Task 2
a.) Organization Sales Management Structure

Organizing follows planning and it reflects how the organization tries to achieve the plan.
Organizing describes how to do it and Strategy describes what to do. Organizational structure
itself plays an important role of an organization and it benefits to achieve their targets and
goals. Mainly it needs to be changed and adjusted according to the strategy, environment and
technology.
Organization structure is defined by following three aspects in a company. (Daft, R. L. 2009).

1. The set of formal tasks assigned to individuals and departments

2. Formal reporting relationships including lines of authority, decision responsibility,
number of hierarchical levels and span of managers control
3. The system design to ensure effective coordination of employees across departments

There are Five approaches to structural of a Organization. Functional, Divisional and Matrix
are the three traditional approaches and the Team and Virtual Networks are the two
innovative approaches. Mobitel has a matrix organizational structure.

Matrix approach syndicates features of both functional and divisional structures

simultaneously. The functional hierarchy of authority runs vertically and the divisional
hierarchy of authority runs horizontally. The vertical structure provides traditional control
within functional departments and the horizontal structure provides coordination across
departments.

However as a result of this dual structure, some staffs actually report to two superiors
simultaneously.

Matrix structure has more effective use of resources than single hierarchy and is flexible and
adjustable to the changing environment.

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Figure 5: Mobitel Organizational Structure. Source: Authors work.

 The organization is steered by the senior management team headed by the Chief
Executive Officer.
 Strategic investment decisions are taken by the board of directors.
 Matrix structure is established in the internal divisions.

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Advantages of Mobitel sales management structure:

 These organization structure is enable for fast decision making.

 Direct communication to the appropriate function instead of hierarchical
communication enables the faster decision making.
 The expert knowledge that possessed by each employee, leads to better judgement,
decision making and goal congruence.
 This structure specifies the importance of projects in the organizational levels.
 Flexibility and freedom

Disadvantages of Mobitel sales management structure:

 This structure does not clearly shows the line of authority. Some conflicts may rise
due to cross functional team employee may receive one direction from a functional
manager and a different direction from the cross-functional team manager. As a result
of this employee turnover will be effect and dissatisfaction will arise.
 These type of organizational structure will create less opportunity of going to the next
level of hierarchy. This problem will occur in self-esteem and demotivation.
 An increase in stress among employees and Workers’ inability to focus at work.
 Incompatible policies and procedures, multiple superiors can lead to ineffective
management.
 Generate difficulty of over specialization in some circumstances. Professional from
both functional project works meet to show many complex difficulties of the
organization. As many professionals gather to resolve difficulties they waste valuable
time in supporting their own concepts and sometimes difficulties remains unsolved.
 Problems with authority imbalances may not only advance because of workers, but
also from the company culture as a whole. Upper supervision must confirm that
project authority and functional authority are stable, with each given equal
consideration and resources.

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 b.) Organization KPI’s and Motivational tools Analysis

Key performance indicators (KPI) are a set of quantifiable measures that a company uses to
gauge its performance over time. These metrics are used to determine a company's progress
in achieving its strategic and operational goals, and also to compare a company's finances and
performance against other businesses within its industry.

(http://www.investopedia.com)

Creating and maintaining employee motivation is a necessary part of running any successful
business. Key performance indicators (KPI’s) can be a powerful tool for employers when it
comes to creating a work environment that fosters employee motivation and drive.

KPI’s of the organization for the sale team:

 Sales Target – measure and compare current sales to a target or past performance. This
will help sales team member to set an appropriate sales target and to achieve it.
 Product Performance – this KPI ranks product sales based on revenue performance to
inform your sales team which products are selling well. At the same time, you should
rank the poorest performing products to determine which products are failing to resonate
with your customers.
 Sales Growth – this will measure whether company income is increasing or decreasing?
This is very important to for decision making. This KPI is used to evaluate the each sales
team contribution to the organization.
 Average Profit Margin – This Company sells different types of products and it needs to
verify which products are most profitable. This will help for pricing.
 Sales by contact method – this will helps to find which contact method (self-serve, direct,
email, telephone) most successfully generate sales.

Most employees need motivation to feel good about their jobs and perform optimally.
Some employees are money motivated while others find recognition and rewards personally
motivating. Motivation levels within the workplace have a direct impact on employee
productivity. Workers who are motivated and excited about their jobs carry out their
responsibilities to the best of their ability and production numbers increase as a result.

(http://smallbusiness.chron.com)

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Motivational tools used to drive the sales team:

 Incentive boost for additional revenue generation – sales will increase

 Succession planning – retention of best talent in the industry
 Sales force automation
 Outbound activities
 R&D on sales strategy optimization
These motivational tools will helps to sales increase, retention of best talent in the industry,
develop team spirit among sales team, staying ahead with non-stagnant strategies.

c.) Skills for Sales Management member

1. Communication
On the phone, the manner of voice, volume and pace of a sales member speech are
unexpectedly important sales skills. In sales, how you say things to a prospect matters
more than what you say.

According to Sandler Sales Training, only 7% of communication relies on the content

of what you say, whereas 38% of communication is about other attributes of
communication such as tonality, etc.

When it comes to communicate with a client, it’s not what you say but how you say it.
Sales member must try to slightly mirror a prospect’s tone of voice and style of
talking. If client is more polite and formal in a telephone conversation it is better to
speak in a similar way. If the client is more informal and joke around, do the same.
This will helps to manage a relationship with the client and to gain trustworthiness. It
is better to speak clearly without any hesitation, not too silently, and not in a
monotone. You need to let your feeling and behavior shine through, so that the person
in the other side knows you’re a human, and feel friendly. It will helps to the client to
feel interested in talking to you.

Before taking the call you should go through this questions and be prepared.

What is your ideal outcome for the call?

What information should you be trying to get from the prospect?
What are the prospect’s likely needs/pain points?
Which features of the product or service should you emphasize?
What signs should you be looking for to identify a likely buyer?
What likely objections should you be prepared for?

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 2. Product Knowledge
A sales team member who doesn’t perfectly understand the product they’re selling is
an utterly unsuccessful sales member. Product training should be one of the very first
things you must teach before getting in to the business.

Sales team member should be able to explain in detail how each product function,
what business value it offers, and the reasons it demands to your company’s ultimate
customers. Deep product knowledge is not only it benefits and advantages, you should
know if any disadvantages and errors occurs.

Also sales team member must have a technical knowledge to describe the product. It
is an essential step to get thorough knowledge about competitor products and what are
the functions it has. This will help to compare competitors and promote company
products.

3. Post – Sale Relationship Management

There is a common mistake which we do, but not to do. Many of us forget to show
gratitude to customers and to continue building and maintaining the relationship even
after the sale happens.

Firstly, it’s important to be thankful for the business regardless of whether the
customer will buy from you again. If this relationship continues, it will helps you to
bring new customer through existing customer or go to different product category.

It will remain your customer as regular loyalty customer and he want go to your
competitor and its products. Furthermore, your customers can and will refer you to
other customers.

Finally, even ten years later you can still go back to the individual to whom you sold
years ago and they may still become a customer even when both of you are in a new
and different company. Relationships really matter; it’s that simple.

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 Bibliography

Cron, W., Decarlo, T. (2010) Sales Management concept and cases, Tenth Edition

Kotler, P. (2009). Principles of Marketing (13th Edition).

Kotler, P. (2001). Marketing Management Millennium Edition, Tenth Edition
Kotler, P., Keller, K. (2012). Marketing Management, 14th Edition
Sri Lanka Telecom PLC. Annual Report 2015
Sri Lanka Telecom PLC. Annual Report 2014
Sri Lanka Telecom PLC. SLT Sustainability Report 2014
www.salesmanagement.org
www.mobitel.lk
www.slt.lk
www.insightsquared.com
www.blog.topohq.com
www.investopedia.com
www.entrepreneur.com
www.economictimes.indiatimes.com

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