CASE STUDY DISCUSSION:

SM TECHNOLOGIES

S U B M I T E D B Y:
I S H I TA M AT H U R ( 0 0 2 1 9 1 0 1 7 2 2 )
I S H I TA G U P TA ( 0 1 7 1 9 1 0 1 7 2 2 )
MAAHIR JAIN (05319101722)
ANADI SINGHAL (04319101722)
M A N V I G U P TA ( 0 3 5 1 9 1 0 1 7 2 2 )
S H I VA I N TA N VA R ( 0 4 6 1 9 1 0 1 7 2 2 )
Background of the company
SM Technologies was a fully owned subsidiary of a UK based group, which had operations in 20
countries across five continents. The company had built state-of-the-art optic fiber telecom
networks in India. It offered broadband enabled internet services, such as voice, data and video,
across 10 major cities Mumbai, Bangalore, Delhi, Hyderabad, Chennai, Pune, Surat, Ahmedabad,
Baroda and Vishakhapatnam, with plans to roll out in other cities in future.
The company’s registered office was located in Mumbai. Satish Mehta, CEO for Indian operations,
launched its services in India in 2001 and within a short span of time, it had become one of the
fastest growing broadband players.
Services offered
SM Technologies offered broadband enabled services to corporate (or business) and home (or
domestic) users. For corporate users the company offered the following business services:
• Data connectivity services
• Voice connectivity services
• Managed services
• International bandwidth services
For home users, the internet services offered by the company included world-class broadband
network, which would facilitate fantastic surfing and downloading speed live audio and video,
internet technology, chat and gaming. However, till the broadband network was set up in
residential area, the company offered dial-up internet packs. The company’s internet telephone
service was a great cost saver for those users who wanted to make international calls to their
near and dear ones.
 Competition
Some of the major competitors of SM Technologies were:
• Reliance Infocom
• Airtel
• VSNL (Tata Teleservices)
• BSNL
• Hathway
• Satyam Infoway (Sify)
• Spectranet
Sales and marketing organisation at
Bangalore
Each of the 10 offices in India, including Bangalore, had a location head to take care of overall
sales and marketing administration. Typically the sales organization structure was:

Branch Head
Sales Sales
Manager-Corporate Manager-Retail

Asst. Sales Asst. Sales

Manager-Corporate Manager-Retail

Salespersons- Corporate Salesperson-Domestic/Home

 Present Sales Strategy
• Unique salesforce composition: Direct employees for corporate clients and contract-based salespersons
for home users.
• Compensation structure: Fixed salary and commission for direct employees, straight commission for
contract salespersons.
• Sales targets: Monthly targets divided into weekly and daily goals.
• Reporting system: Daily sales call reports submitted to assistant sales managers.
• Control measures: Close monitoring to prevent manipulation and over-promising to customers.
• Emphasis on skills: Salespeople required high technical knowledge, communication, negotiating, and
selling skills.
• Training partnership: Tie-up with a leading sales training institute for continuous skill development
• Performance analysis: Sales manager conducts discussions, mock presentations, and video recordings to
identify performance issues and suggest improvements.
Distribution Channels
• Distribution channels: Direct salesforce, online selling via website, and telemarketing.
• Target customers: Corporate customers serviced by corporate salespersons,
household/individual customers serviced by domestic salespersons.
• Use of online selling and telemarketing: Primarily for prospecting purposes.
• Personalized sales approach: Company salespersons visit prospective customers for proposal,
presentation, negotiation, and closing the sale.
• Installation and after-sales service: Handled by a separate team of engineers or technicians.
• Emphasis on long-term relationships: Corporate salespersons focus on building and
maintaining long-term business relationships.
 Promotion
• Reevaluate current strategies: Assess the effectiveness of present sales and distribution strategies in achieving growth targets.
• Market analysis: Conduct thorough market research to identify emerging trends, customer preferences, and competitive
landscape.
• Differentiated approach: Tailor sales strategies for different customer segments (corporate vs. individual) to better address their
specific needs and preferences.
• Enhanced online presence: Invest in digital marketing strategies to expand online selling channels and reach a wider audience.
• Strategic partnerships: Form alliances with complementary businesses or industry leaders to leverage their customer base and
enhance market penetration.
• Innovative promotions: Develop creative promotional campaigns to stand out in the market and attract attention from potential
customers.
• Customer retention: Implement strategies to improve customer loyalty and retention, such as enhanced after-sales service or
loyalty programs.
• Training and development: Continuously invest in the training and development of sales teams to equip them with the skills
and knowledge needed to adapt to changing market dynamics and effectively sell the company's services.
• Performance tracking: Establish clear performance metrics and regularly monitor progress towards growth targets, making
necessary adjustments as needed.
ANSWER 1
•After sales services: The after sales services of the company might not be up to the mark
resulting in very low repeated customers.
• Undedicated workforce: The sales team of SM Technologies is highly skilled but their dedication
to do the work might be very low and not meeting the needs of the company which is why they
are unable to achieve their assigned targets.
• Under hiring: The objective to achieve might be very high and the number of sales people
might be very low resulting in work pressure and unachieved targets.
• Online selling: SM Technologies does their online selling only through their website, they might
need to expand their online selling by engaging with different social media platforms such as
Instagram, Facebook, etc. As their competitors are highly engaged in such activities. Doing this
they will increase their reachability and expand their target market to a great extent.
Answer 2
• Relationship Building: Focus on building long-term relationships with customers through
personalized interactions, excellent customer service, and loyalty programs.
• Cross-Selling and Up-Selling: Offer additional services or upgrades to existing customers based
on their needs and usage patterns.
• Digital Marketing: Utilize digital marketing channels such as social media, email campaigns, and
search engine optimization to reach potential customers and drive engagement.
• Customer Feedback and Improvement: Gather feedback from customers to continuously
improve products, services, and the overall customer experience, fostering loyalty and positive
word-of-mouth.
• Sales Promotions: Offer limited-time promotions, discounts, or incentives to encourage new
customer acquisition or upsell to existing customers.