INTRODUCTION TO SALES PLANNING AND OPERATIONS
Sales planning and operation refers to development of strategy and integrate system that supports organization to define production level to meet the demand and effective utilization of resources. Report will describe the benefits of personal selling for Enviro-cars in different situation. Enviro-car is a showroom and garage which deals in electronic cars. Report will analysis the role of sales teams and impact on overall strategy. In the next part report will provide the presentation for bag manufacturing company and explain sales strategy for Plastic Product Ltd. In the end report will develop sales plan for New Look organization and investigate opportunity into international emerging market.
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1.1 Personal selling at Enviro-Cars Ltd. to support other promotional activity
Personal selling is the set of process that must take place in order to execute a sales plan from start to finish. Personal selling include events, demo and trial period which influence the decision of customer and help to built trust among the potential customer groups (Grimson, and Pyke, 2007). The method of advertising and sales planning could be helpful for Enviro-Cars Ltd. to promote its electronic car and other services like buying and selling of second hand cars and garage services. Personal selling will support the promotional activity of organization and help to understand the requirements of clients and develop sales plan and operations to meet the desired level of satisfaction of customers. Personal selling will support the promotional activity of Enviro-Cars Ltd. in following manner:
By using the techniques of personal selling company can increase the level of trust in the market as it going to expand the market size and share. In personal selling management can offer the test drive and trial period of evaluating the performance of cars which will encourage the customer to trust on the organization and avail the services of Enviro-Cars Ltd (Jonsson and Mattsson, 2013). This activity will help to enhance the experience of customers and check the quality and desired requirements. It will support organization in promoting cars and brand name.
Personal selling is important for communicating message to target group of customer and provide all information about the products and services of Enviro-Cars Ltd. By this ways company will able to deliver the all details to potential customer which will support the promotional activity as well as create awareness in market.
Personal selling will help management to influence the decision of customer by meeting them and giving presentation for cars (Knapp and Sciglimpaglia, 2006). It will help organization to impresses customer by giving demo of product and services which will directly impact on the sales of company. It will also support the promotional activity for encouraging brand name.
1.2 Buying behavior and decision making process in different situation
In the buying process of product and services, different buying behavior of customer affect the decision making process and sales planning of organization. In order to develop an effective and successful sales plan Envior-Cars Ltd. management need to analysis the following buying behavior of customers.
Complex buying behavior:
In that customer is highly involved in the purchasing and have the significant knowledge of brands. In complex buying situation customer evaluate the differences and benefits of product and choose one for buying (Le Bon and Merunka, 2006). For example a customer while buying a car highly involved in the purchase as he has the knowledge of all alternative brands and chooses car that best suit to them. In this situation it is very hard for Enviro-Cars Ltd. management to manipulate the decision of customer due to presence of a large number of options where they can switch easily.
Varity seeking behavior:
In that situation involvement of customer in buying product and services is low as it deals in different brands due to dissatisfaction. This could be a chance for Enviro-Cars Ltd. to persuade the customer for buying their car. By encouraging customer and effective promotion company can convert these buyers into loyal customers.
Decision making process:
For the purchase of each product and services customers are trail following steps to make decision for B2B and B2C.
- Collection of information: In B2C buyer collects information about cars by various sources to make a decision (Linea and Jonsson, 2010). From internet, newspaper and public review customer make mind to choose one brand. On the other hand B2B business customers seek for quality and profit margin. Organization makes decision on availability and demand of product. Market trends and economic conditions of particular areas influence the decision making process as well as data that collected from the market for development of plan (Ashe-Edmunds, 2014).
- Alternative: Customer evaluate the all the possible alternative for making decision. In that role of sales person for Enviro-Cars Ltd. is important to provide all information to customer. In B2C consumer has many alternative choices according to budget and quality in spite of that B2B business make decision by analyzing the durable and high profit margin alternative car product which influencing the sales of company (Pulakos., 2009). Buying behavior of customer has impact of friends and family that influence their decision of purchasing. On the other hand B2B make choice of alternative according to quality and price.
- Selection of brand: After the evaluation customer make one decision and go for the brand which offering impressive services and giving value for money. In that sales person of Enviro-Cars can support customer to select their brand. In B2B, organization follow simple process for developing decision for selecting brand as they prefer to establish brand name to increase the sales and improve the market share (Pattanayak, 2005). Buying behavior of customer has the impact of market trends and current values of brand. On the other hand B2B analyze the demand of particular brand and make decision for buying and selling.
- Execution of decision: This could be the end of decision making process as customer buy the car after evaluating all alternative and choosing product which is best in its class as well as level of income. In B2B organization execute decision for large scale and try to implement according to plan for car and market conditions (Linea and Jonsson, 2010). Buying of product in B2C is decision of individual in spite of that B2B business involved all stakeholders and consideration of policies of competitors for applying decision for electronic car.
1.3 Role of sales team in overall marketing strategy
Enviro-Cars Ltd. is seeking to promote its product and services as “environmental-friendly” and “Economical” for all type of customer. For that organization is looking for skilled staff because the current sales staff is inexperienced and some of them have left the job (Malhotra, 2010). In spite of the company has appointed new sales force which has to play major role in executing sales plan and operational activity for achieving desired goals. Following are the key role of sales team for Enviro-Cars Ltd.
The role of sales team for Enviro-Cars Ltd. is to develop marketing strategy for targeting customers and understanding their needs to promote company’s car accordingly. For that sales team will collect the information from market, analysis the condition and current trends for promoting cars. Team will use the economical and environmental friendly appeal for promoting brand in the marketing strategy.
It is the responsibility of sales team to identify the potential customer areas in market for positing of environmental friendly car as well as developing marketing plan accordingly. For example organization is seeking to middle level income groups and that will help to promote electronic car in this segment (Monat, 2011). In addition to that sales team will evaluate the other segments that can be useful for Enviro-Cars Ltd.
Marketing planning and execution:
Sales team will perform the marketing activity planning for electronic and second hand cars for Enviro-Cars Ltd. This could be the major role of sales team to develop marketing plan which include all the elements that will support the promotional strategy and help to achieve objective which define by the management. In addition to that it is the responsibility of sales team to execute marketing plan in proposed manner to get desired outcome.
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2.1 Development of Sales strategy in line with corporate objectives
Plastic Product Ltd. is dealing in the fast-moving consumer goods like plastic cups, teaspoons, knives and forks in the catering industry. Management is seeking for growth in the fast food sectors which need support of disposable items for delivery and serving food to customers. For that organization requires sales strategy which helps to accomplish corporate objectives and encourage sales also. Following are the key steps of sales strategy along with corporate objectives:
Identification of objectives:
For the improvement in sales and meeting the objectives of key stakeholder, management need to identify the objectives that have to be considered in the sales strategy. Marketing team will collect information and analyze the facts according to sales and corporate objectives.
Evaluation of market condition:
For the development of sales strategy, analysis of market condition and trends is essential which will support so as to include tactics and key objectives that could influence the sales (Jobber and Chadwick, 2013). Evaluation of competitor policy and analysis of fast food industry will support for developing effective plan and strategy.
Planning of resources:
For the development of sales strategy, planning of resources like human and financial is very essential. This is justified as it is only by undertaking a proper means of planning, marketing strategy for Plastic Product Ltd. can be driven. It can further prove to be helpful towards meeting the corporate objectives decision for distribution and purchase of machinery also need to be plan which influence the supply chain and brand reorganization. This could be helpful for developing effective strategy for Plastic Product Ltd.
Determination of sales objectives:
For development of effective sales strategy, determination of sales and corporate objectives is necessary which will help management to meet the goals in a more effective manner (Pattanayak, 2005). Top management of organization can use the SMART objectives for developing sales strategy.
2.2 Role of selection recruitment procedure
Selection and recruitment procedure is important part of organization for performing operations and meeting the objectives of business as well as customer. In the given case, Plastic Product Ltd. is lacking in effective sales force that can effectively market their plastic product in catering industry. For developing skilled sales team selection and recruitment process will play crucial role. Following are the key roles of selection and recruitment process for Plastic Product Ltd.
Choosing right person:
Selection and recruitment process gives the opportunity to choose right person for sales job that have the knowledge for market and use the marketing tactics for increasing sales volume of company (Prince, 2011). Through this process management can evaluate the quality and skills of candidates which have the potential for achieving objective of organization and individual.
Evaluation of applicants:
By this process, management of Plastic Product Ltd. can evaluate the different culture and back ground candidates that will be helpful for company to gain knowledge. In the selection and recruitment process company can enhance the information base that will help to develop sales strategy.
For fair decision:
Follow up of selection and recruitment process will enhance the equality for each candidate that have the quality for serving organization and meeting the objectives that Plastic Product Ltd. expect from new sales person (Pulakos., 2009). This is the key role of selection and recruitment process which provides the equal opportunity for applicants to get the job.
2.3 Role of Motivation, remuneration and training in sales management
Motivation is an internal and external factor that stimulates desire and energy in people to be continually interested and committed to a job, role and task for achievement the goals. For Plastic Product Ltd. motivation of staff member is very essential as sales forces of company are new and inexperienced. By motivation management can encourage sales team and boost the positive energy which supports them to work with positive frame of mind and achieve goals and objective effective and efficient manner (Megginson and Whitaker, 2007). It could be the responsibility of general manager Bill Preedy to understand the mentality of sales team and encourage them to give their best efforts to promote organization and improve sales.
This term refers to giving rewards to employees and staff members for better performance. Remuneration includes pay, wages, and allowances like car, accommodation and medical facilities. This help to encourage the employees to give their full efforts in sales and meeting the goals of Plastic Product Ltd. and individual (Gray, 2007). By using this term management can influence the staff member to work with positive energy and get assure reward for good performances.
Training is an organized activity that aimed to imparting information or instruction to improve the recipient’s performances or to help for understanding the process for accomplishing tasks. Training of sales person is very important that help individual to understand the process of operation as well as way of working at Plastic Product Ltd. The manager of organization will conduct training for newly recruited sales persons and provide them necessary details to develop skills and apply techniques that improve the sales.
2.4 Sales management organizes sales activity and control sales output
Through the sales management organization can define the process for sales and marketing activity that encourage the sales. Sales management is necessary for the Plastic Product organization as company is seeking to improve sales volume in catering industry (Kleindl, 2006). Organization is following divisional structure of managing and performing activities. Sales management is generally based on structure of organization and gets influence from the management for determining activity for sales. Plastic Product Ltd. is following divisional structure for managing operations and task for sales and promotion. This will help management to monitor the activity and have control over the sales planning and strategy. Divisional structure is helping manager to analyze the condition of operation at each level and implement changes two according to sales. In sales management planning of resources such as human and financial also take place which is very important to executing sales plan (Kleindl, 2006). By effective planning and implementation of plan manager can manage manufacturing of product more efficient manner which will control the expanses as well as improve the financial budget for Plastic organization.
In order to control the sales margin organization can squeeze the supply of product in market which will influence the demand as well as sales. This could be the better way to control the sales output for Plastic product Ltd.
2.5 Use of database in effective sales management
In the current scenario, sales management and planning highly depends on the technology as organizations and industries are using the enterprises systems for keeping records and analyzing the facts of sales management (Dent, 2011). Plastic Product Ltd. can also implement enterprise system to develop data base and keep the information safe and secure for future use. Through that system management can improve the communication and co-ordination with department manager and sales executives. Database will help management to store, format and convey messages to individual or department in quick time as well as provide the access of past sales figures, by analyzing the past sales management can develop plan and identify the areas for encouraging sales. By storing information and details of customer organization can develop product range that liked by customers and business organization. By analyzing the database information top management of Plastic Product Ltd. can make changes and develop plan for effective sales management. Following are the key benefits of database:
- Analysis of past sales strength and weakness.
- Determination of sales objectives.
- Understanding of customer needs and wants.
- Development of plan and effective sales management.
3.1 Sales plan for organization
In the given case New Look is a British fashion retailer chain of high street shops in UK and many other countries (Dobkin, 2007). Organization is seeking to improve the sales and influence the decision of clients by attractive sales and marketing strategy. For New Look marketing plan for men’s cloths is as follows:
Figure 1: Sales plan for New Look Ltd.
The mission of organization is to improve business share and size in emerging market by offering quality product with attractive design.
- To increase the market in international market.
- Improve the sales volume by 8% in 6 months.
- To meet the need of customer in significant manner.
- Establish brand in two or more countries.
In order to establish brand name in the international market, management will use the joint venture strategy for entering in new market. This activity will help New Look Ltd. to improve its market share in emerging market (Gray, 2007). Organization will target middle level income groups of country and that will help to promote men’s cloth in this segment and target customers. In addition to that sales team of local organization will evaluate the other segments that can be useful for New Look Ltd. as well as provide the useful information about market.
To establish brand name in market New Look management will do the celebrity endorsement to influence demand as well as attract customers (Jobber and Chadwick, 2013). This strategy will help organization to set good brand name in market and achieve the sales objective in new market.
To achieve objectives and goals effective and efficient manner, management will apply following actions:
Knowledge about market:
Market trends and economic conditions of particular areas influence the decision making process as well as data that collected from the market for development of plan (Dent, 2011). Information and knowledge about the targeted market will enhance the effectiveness of plan and make changes to increase sales at the point.
Planning of resources:
In order to improve the sales management allocates resources like human and financial is to develop function and meet the goals effective manner for men’s cloths (Ashe-Edmunds, 2014). In addition to meet the corporate objectives manger make decision for distribution and purchase of machinery to meet the demand and supply which will support for brand reorganization in targeted areas. Prior planning of resources will help to manage operations and maintenance of quality in production.
Advertising and promotional offers:
New Look management will promote cloth by giving promotional offers and schemes that attract customers in limited period of time (Effective Workflow for Collaborative Decision Making. 2009). By applying this approach in sales New Look organization will manage to increase sales and make changes according to demand. By giving such offers organization will try to attract customer and through effective services and quality manage to retain them for future.
Key performance indicators:
- Regular monitoring of sales and customer perceptions will improve the understanding of market and improve the interaction with customer.
- New Look Ltd. management will introduce customer helpline desk online in which company will provide details about product and offers. This activity will influence customer decision and help to retain them.
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3.2 Evaluation of opportunities in international market
In the current position of international market, economic conditions of world economy is stable and even good for New Look Ltd. to expand business in more countries. There is stability in the government norms as well as economic policies. Impact of recession has also decreased to a great extent. However company is operating business effectively in different part of world but still not enter into emerging market like India, China, Brazil and Russia which have lot of potential which help New Look Ltd. to grow business and improve brand reorganization in rest areas of world (Performance Management and Rewards. 2014). Organization can enter into clothing market of India by having joint venture with local firm which has good brand name in market. This activity will help New Look Ltd. to improve its market share in emerging market of India. For example organization is seeking to middle level income groups of India and that will help to promote men’s cloth in this segment and target customers. In addition to that sales team of local organization will evaluate the other segments that can be useful for New Look Ltd. as well as provide the useful information about market of India to design and develop cloth accordingly (Jobber and Chadwick, 2013).
It is the responsibility of sales team to identify the potential customer areas in market for positing of men’s cloth as well as developing marketing plan accordingly.
3.3 Opportunities for using exhibition or tread fairs
By participating in exhibition and international trade fairs New Look Ltd. can promote men’s cloth product and improve the knowledge about different perception and fashion senses of customers. By participating in exhibition or tread fair management of New Look Ltd. can identify opportunities for new emerging market and expand business in other countries (Malhotra, 2010). Following are the key benefits of exhibition or tread fairs for determine opportunities.
By demonstrating cloths in exhibition management of New Look Ltd. can collect the views of customer which will help to understand the need of customer. This will help organization to identify opportunities according to need to customer and make change for future sales. From the investigation it is consider that exhibition and trade fairs will help New Look Ltd. to develop cloth rage according to feedback collected (Gray, 2007).
Testing of product:
Exhibition or trade fairs are the good platform for testing the cloth product at international level to influence the customer decision (Pattanayak, 2005). Through exhibition or trade fairs New Look Ltd. can test the quality of cloth and analyze the changes that should be done to make product perfect for international market.
By taking part in exhibitions and trade fairs new look organization can observe the requirement of customer about quality and price. Top management can analyze the data and set the optimum price which influences the decision of buyers (Grimson and Pyke, 2007). This will help New Look Ltd. management to make modification and set the optimum prize as per the targeted market segments for utilizing opportunities for future in emerging markets.
From the above report it is consider that sales planning and operation management plays important role in the improvement of sales volume. Enviro-Car Ltd. has produce electronic car which could be promote as eco-friendly and economy car. Report has explained personal selling to promote the car in the targeted segments that will increase the sales and profit margin for Enviro-Cars Ltd. Report has discussed different buying behavior and decision making situation that need to be evaluate by the management of Enviro-Car Ltd. to achieve the objectives. in the next part report has explained role of sales strategy, selection and recruitment process as well as importance of motivation, training and remuneration for Plastic Product Ltd. to improve the sales and achieve the objectives. In the end report has provided sales plan for men’s cloth for New Look Ltd. and investigated opportunities into emerging market and benefits of exhibition or trade fairs.
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