SALES FORCE MANAGEMENT

Prepared by P.G.P. Chandra Kumara Reg. No. 0000016822

Managing Sales & Distribution (MGL202) De e!ber 20"# E$a!ination

Di%lo!a in Mar&eting

SR' LAN(A 'NST'T)TE OF MAR(ET'NG

Assignment Mar ing !"heme

Table o* Content

A &no+le,g!ent
#ords are indeed inade$uate to "on%ey my deep sense o& gratitude to a'' those (ho ha%e he'ped me in "omp'eting this assignment to the best o& my abi'ity. ) am rea''y than &u' to a'' the 'e"turers o& !*)M &or ma ing a'' ind o& arrangement to "omp'ete this assignment su""ess&u''y and guiding and he'ping me to so'%e a'' inds o& $uarries regarding the assignment. +eep sense o& gratitude goes to them &or their "ommitment and dedi"ation. As a student o& PG+ip 'e%e' 2, ) (as ab'e to get more no('edge and e-perien"e throughout the study. .han s to my "o''eagues (ho e-"hange their e-perien"e and %ie(s to de%e'op my assignment. *ast but not 'east ) (ou'd 'i e to than a'' the emp'oyees o& !*)M Matara /ran"h (ho ha%e dire"t'y and indire"t'y he'ped me (ith their mora' support &or the "omp'etion o& my pro0e"t. ) (ou'd 'i e to than to my &ami'y members &or gi%ing me &ree time &or my &urther edu"ation.

E$e uti-e Su!!ar.

Apo''o .yre Manu&a"turing Company 1P%t2 'imited has been in .yre Manu&a"turing and +istribution business &or o%er 20 years. .he "ompany has positi%e brand image but the mar et share is 'ess than 134 due to hea%y "ompetition. Present /oard o& +ire"tors ha%e de"ided to e-pand mar et share by 134 to 234 by de%e'oping spe"ia'i5ed !a'es 6or"e. As the ne('y re"ruited Nationa' !a'es Manager o& the "ompany has de%e'op !pe"ia'i5ed !a'es 6or"e and propose !a'es and +istribution p'an. !pe"ia'i5ed !a'es 6or"e "onsisting o& 7 Assistant !a'es Managers to "o%er entire )s'and. .hey are responsib'e &or Retai' trading, Corporate business and Go%ernment /usiness. 71 !a'es 8-e"uti%es are re"ruited to "o%er &ie'd 'e%e' operation under to super%ision o& A!Ms. Attra"ti%e remuneration (i'' based on ea"h !a'es Persona' and )n"enti%es, /onuses, Re(ard !ystems, Compensation (i'' pay to eep up their moti%ationa' 'e%e'. Report &urther dis"ussed &i%e persona' se''ing strategies and se'e"t prob'em so'%ing pro"ess to the sa'es de%e'opment. Annua' !a'es .arget has been de%e'oped and !a'es in"ome and e-penses a'so dis"ussed. Company (i'' be ab'e to a"hie%e high pro&it margin &orm the operation and to a"hie%e 234 mar et share as proposed (ithin t(o years o& operation.

To Fro! Date

9 9 9

.he /oard o& +ire"tors : Apo''o .yre Manu&a"turing Company 1P%t2 *td. Nationa' !a'es Manager !a'es 6or"e Management 28th ;"tober, 201<

Sub/e t 9

'ntro,u tion
Apo''o .yre Manu&a"turing Company 1P%t2 *imited, is one o& the pioneer tyre manu&a"turer and distributor in the "ountry (ith an o%er 20 years re"ord o& e-"e''en"e and "ustomer "on&iden"e.

.he Company began its operations in the mid nineties in the "apita' "ity. !in"e then it has e-tended its operations throughout the is'and and has a %ery 'oya' "ustomer base (hi"h has been the resu't o& good "ustomer "are.

/eing a manu&a"turer o& high $ua'ity tyres, the Company has the strategi" ad%antage o& passing on the e"onomi" bene&its o& their "ustomers by (ay o& mar et "ompetiti%e pri"ing !trategy.

.hough the "ompany name pre%ai's o%er 2 de"ades the mar et share o& the "ompany re"ords 134 due to hea%y "ompetition o& internationa' brands. Present /oard o& +ire"tors de"ided to e-pand the sa'es operation by strengthening &ie'd net(or and in"rease the mar et share &rom 134 to 234

6o''o(ing is the report &or the !a'es &or"e de%e'opment o& the "ompany &or ne-t 2 years and to "reate !pe"ia'i5ed !a'es &or"e to dominate the mar et to a"hie%e the "ompany targets.

Con e%t o* E**e ti-e Sales Manager

!a'es managers &a"e many "ha''enges in today=s business (or'd. .hey must be ab'e to imp'ement a'' strategies o& the sa'es management throughout the pro"ess. .here are many de&initions &or the 8&&e"ti%e !a'es Manager and &o''o(ing is one o& them. E**e ti-e Sales Manager Definition >8&&e"ti%e sa'es managers emp'oy a strategi" perspe"ti%e that &o"uses on "ustomers are ab'e to attra"t, eep, and de%e'op sa'es ta'ent and 'e%erage te"hno'ogy throughout the sa'es organisation? Ingram; Laforge Sales Management analysis and decision making 6 edn India: Cengage Learning- pp12

A !trategi" Perspe"ti%e 6o"used on Customers

8&&e"ti%e !a'es managers need to be more strategi"a''y oriented. .his re$uires bringing a "ustomer &o"us to the de%e'opment o& organisation strategies and "reating sa'es strategies to meet the need o& di&&erent "ustomers in a pro&itab'e manner

Attra"t, Keep and +e%e'op !a'es .a'ent

A "riti"a' part o& sa'es management is re'ated to peop'e issue. @iring the best sa'es peop'e, ma ing sure their retention, and he'ping them per&orm at their highest 'e%e'.

*e%erage .e"hno'ogy
Proper use o& in&ormation and "ommuni"ation te"hno'ogies "an he'p sa'es peop'e to per&orm their 0obs more e&&e"ti%e'y and e&&i"ient'y. .he ey tas is to se'e"t the right te"hno'ogy and ensure that it is used in the appropriate manner. @ear are the &a%ourite $uote about the !a'es Managers >!a'es is essentia''y a ta'ent dri%en o""upation? >#or'd "'ass sa'es organi5ations hire the best peop'e and engage them? Benson Smit E**e ti-e Sales Manager0s 1ob Fun tion in to,a.0s +orl,

.he sa'es are "arried out by di&&erent sa'es persona's. @en"e, a sa'es manager is re$uired to monitor the gro(th o& sa'es, a"hie%ement target in time, "oordinate %arious sa'es a"ti%ities and "ontro''ing the sta&& to per&orm as e-pe"ted by the "ompany. !a'es 0ob in%o'%es 'ess (or at the o&&i"e and more (or in the &ie'd. A good sa'es manager shou'd be ab'e to understand the prob'ems (hi"h the emp'oyees are &a"ing and he'p in so'%ing them. !a'es manager (ou'd beha%e 'i e a team member and he'p in 'eading the team to rea"h the targets and demonstrate 'eadership. !a'es manager has to &ind any training re$uirements &or the team and he'p to be pro%ided (ith the same. .he "ha''enge is to et". .he ro'e o& an e&&e"ti%e sa'es manager (ou'd be Ana'y5e the mar et and &ormu'ate sa'es p'an a""ording to the "ompany re$uirement. !etting up ;b0e"ti%es, Po'i"ies, !trategies and P'ans &or the sa'es &or"e. ;rgani5e and sta&&ing the sa'es &or"e and 'eading them to e-e"uting the sa'es p'an. 6a"i'itating proper "ommuni"ation "hanne's to ensure the imp'ementation o& the sa'es program. Anderstanding prob'ems and needs o& the emp'oyees and he'p in reso'%ing them. Keep up the moti%ationa' 'e%e's and bui'd enthusiasm o& sa'es &or"e a'' the time )denti&ying deBmoti%ating &a"tors and e%a'uate the sa'es &or"e per&orman"e. Gro( and de%e'op sa'espeop'e by identi&ying training needs and emphasising "ontinuous 0ob impro%ement and "areer de%e'opment eep up the moti%ation 'e%e's o& his emp'oyees and to indenti&y the moti%ationa' &a"tors 'i e in"enti%es, re"ognitions, a(ards

2ersonal Selling Strateg.

De*inition3 Persona' !e''ing is de&ined as persona' "ommuni"ation (ith an audien"e through paid persona' o& an organi5ation or its agents in su"h a (ay that the audien"e per"ei%es the "ommuni"ator=s organi5ation as being the sour"e o& massage. Ingram! Lafroge ""2##$% Sales Management &nalysis and decision making' 6 t edn' India: Cengage Learning' pp 1(

A,-antages o* 2ersonal Selling a) 6'e-ibi'ity in de'i%ering the message )& the "ustomer doesn=t understand the message "on%eyed, then the message "an be modi&ies and "on%eyed to the "ustomer again. !in"e a sa'es person intera"ts (ith one potentia' "ustomer at a time the messages "an be tai'ored and de'i%ered as per the "ustomer needs. b2 8&&i"ient (ay o& "ommuni"ation Persona' se''ing is a t(o (ay "ommuni"ation pro"ess (hi"h he'ps e&&i"ient dia'ogue bet(een "ustomer and the sa'es representati%e. )t (ou'd be easy to no( (hether the "ustomer has rea''y understood the "ommuni"ated message about the produ"t. .he immediate &eedba" (ou'd he'ps to no( (hether the sa'es approa"h is (or ing or not and to "hange the approa"h a""ording'y. "2 /ui'ding 'ong term re'ationships Persona' se''ing has an added ad%antage in bui'ding 'ong 'asting re'ationships. d2 /etter a""ess to %arious target segments Persona' se''ing (ou'd he'p to rea"h out to the %arious "ustomers. )& the "ompany dea's (ith /2/ mar ets, persona' se''ing (ou'd be a better "ommuni"ation too' than ad%ertising or sa'es promotion. e2 Comp'e- in&ormation de'i%ery Comp'e- in&ormation 'i e te"hni"a' &eatures o& the produ"t "an be "on%eyed easi'y in "omparison to other "ommuni"ation too's.

Disa,-antages o* 2ersonal Selling a) @igh "osts per sa'e 8

Cost per sa'e p'ays an important ro'e in persona' se''ing and it (i'' be mu"h higher than other se''ing strategies b) Misunderstanding by the "ustomer Many peop'e pre&er to buy the produ"t &rom a store rather than buying it &rom a sa'es representati%e. .hese "ustomers might ha%e bad e-perien"e o& sa'es peop'e in the past and determined not to buy any produ"t &rom them. Fi-e 2ersonal Selling Strategies .here are &i%e persona' se''ing strategies app'ied in sa'es and distribution se"tor. 1. Sti!ulus Res%onse A%%roa 4 Selling .he ey idea is that %arious stimu'i "an e'i"it predi"tab'e response. !a'es peop'e &urnish the stimu'i &rom a repertoire o& (ords and a"tions designed to produ"e desired response. An e-amp'e o& the stimu'us response %ie( o& se''ing (ou'd be "ontinued a&&irmation, a method in (hi"h a series o& $uestions or statements gi%en by the sa'esperson is designed to "ondition the prospe"ti%e buyer to ans(ering CyesC time a&ter time, unti', it is hoped, they (i'' say CyesC to the entire sa'es proposition.

2. Mental State Selling Menta' !tate Curiosity )nterest Con%i"tion !a'es !tep Attention )nterest Con%i"tion Criti"a' !a'es .as Get prospe"t e-"ited, then you get them to 'i e you )nter%ie(9 needs and (ants >#hat=s in it &or meD? Produ"t : >(i'' it do (hat ) (ant it to doD? Pri"e : >)s it (orthD? the hass'e o& "hange? "heaper e'se(here? Peers : >(hat (i'' others thin o& it? +esire A"tion +esire C'ose Priority : >+o ) need it no(D? 1 !ense o& urgen"y2 ;%er"ome their sta'' A'ternate "hoi"e "'ose9 (hi"h, not i&E

Most buyers are essentia''y identi"a' and that buyers "an be 'ed through "ertain menta' states, or steps, in the buying pro"ess. .hese menta' states are typi"a''y re&erred to as A)+A. .he menta' states approa"h re'ies on high'y stru"tured sa'es presentation. .he sa'esperson does most o& the ta' ing, as &eedba" &rom the prospe"t "ou'd be disrupti%e to the &'o( o& presentation. 3. Nee, Satis*a tion Selling Need satis&a"tion se''ing is based on that "ustomer is buying to satis&y a parti"u'ar need or set o& needs. !a'es person=s tas is to identi&y the need to be met, then to he'p buyer meet the need. )n this sa'es program "ompany (i'' be se'e"ting the need satis&a"tion se''ing method to &u'&i'' "ustomer re$uirement. 4. 2roble! Sol-ing Selling .his approa"h typi"a''y re$uires edu"ating the "ustomer about the &u'' impa"t o& the e-isting prob'em and "'ear'y "ommuni"ating ho( the so'ution de'i%ers signi&i"ant "ustomer %a'ue. 5. Consultati-e Selling .he pro"ess o& he'ping "ustomer rea"hes their strategi" goa's by using the produ"ts, ser%i"es, and e-pertise o& the se''ing organi5ation.

Consu'tati%e se''ing is the pro"ess o& he'ping "ustomers rea"hes their strategi" goa's by using the produ"ts, ser%i"es, and e-pertise o& sa'es organi5ation. Ingram; Laforge Sales Management analysis and decision making 6 edn India: Cengage Learning pp 26-)#

2ro%ose, 2ersonal Selling Strateg. *or t4e Co!%an.

10

;ut o& these 3 persona' se''ing strategies, it is re"ommended to use Need !atis&a"tion !e''ing method &or Apo''o .yre Company. )n this method sa'es person in%o'%es to un"o%er "ustomer needs that are re'ated to the produ"t or ser%i"e o&&ering. !in"e the "ompany basi" produ"ts are tyres, it is %ery important to ha%ing better understanding about tyre industry, di&&erent tyre produ"ts, te"hno'ogy, "ompetitor pri"es, (arranties, dis"ounts, "redit terms et"F Company di%ide it sa'es &or"e to three departments su"h as Retai', Corporate and Go%ernment. A'' three segment "ustomers (i'' ha%e to meet persona''y and to se'' the produ"ts. .yre produ"ts are not 'i e 6MCG. )t is needed to parti"u'ar segment (ho are using %ehi"'es. .he need "an be arouse &rom indi%idua' or institute. )ndi%idua' may need a tyre &or his %ehi"'e or organi5ation may need tyres &or their %ehi"'es. #hate%er the person (ho buy the tyres se%era' &a"tors are "onsidered, !i5e !a&ety +urabi'ity #arranty Credit terms

A&ter "on&irming the buyerGs needs, the sa'es person pro"eeds (ith a presentation based on ho( the o&&erings "an meet those needs. .he responsibi'ity o& e&&e"ti%e sa'es person is rea"h the "orre"t "ustomers, un"o%er his need o& tyres and present %arious o&&ering to satis&y their needs. @e shou'd "ontinue se''ing unti' pur"hase de"ision is ta en.

S%e iali5e, Sales For e

)n order to a"hie%e "ompany sa'es target, spe"ia'i5ed sa'es &or"e (i'' be re"ruited to "o%er entire is'and as (e'' as "orporate and go%ernment se"tor.

11

National Sales Manager 6 1ob Des ri%tion

.it'e *o"ation +epartment Reports to Nationa' !a'es Manager 1 N!M2 @ead ;&&i"e !a'es /oard o& +ire"tors

NSM 7 Role an, Res%onsibilit.

+etermines annua' sa'es targets by imp'ementing mar eting strategiesH ana'y5ing trends and resu'ts.

+e%e'oping annua' and midterm sa'es p'ans &or regions and territoriesH pro0e"ting e-pe"ted sa'es %o'ume and pro&it &or e-isting and ne( produ"ts.

)mp'ements nationa' sa'es programs by de%e'oping spe"ia'i5ed sa'es &or"e. Maintains sa'es %o'ume, produ"t mi-, supp'y and demand, "hanging trends, e"onomi" indi"ators, and "ompetitors.

*eading and moti%ating the sa'es team and through the imp'ementation o& a business de%e'opment strategy, KP)Gs and "ontro's, ma-imi5e produ"ti%ity.

Maintains nationa' sa'es &or"e by re"ruiting, se'e"ting, orienting, and training. Maintains nationa' sa'es &or"e 0ob resu'ts by "ounse'ing and dis"ip'ining emp'oyeesH p'anning, monitoring, and appraising.

NSM 7 Entr. re8uire!ent

!ound edu"ationa' ba" ground (ith M/A or any other /usiness Management +egree &rom re"ogni5e uni%ersity Post Graduate +ip'oma in Mar eting 1 PG+ip M 2 at !*)M, or e$ui%a'ent .he !u""ess&u' "andidate (i'' use an e-treme'y pro&essiona' and "onsu'tati%e sa'es approa"h in order to manage spe"ia'i5ed sa'es &or"e. Minimum o& 3 B I years e-perien"e and no('edge (or ing (ithin the tyre industry (ith a simi'ar "apa"ity (ou'd be distin"t ad%antage !uitab'e Candidate shou'd pose dynami" 'eadership (ith an outstanding persona'ity (ith a pro%en tra" re"ord o& su""ess getting the best &rom a team through training, mentoring and de%e'opment. 12

!hou'd be ab'e to Meet !a'es Goa's (hi'e moti%ating sa'es team, /ui'ding Re'ationships (ith sta e ho'ders, Coa"hing, Managing Pro"esses, Mar et Kno('edge, !a'es p'anning and +e%e'oping /udgets

.he !a'es Manager (i'' ha%e to abi'ity to "reate and maintain strong re'ationship (ith "orporate "'ients. .his is a"hie%ed by app'ying a "onsu'tati%e, &'e-ib'e and "reati%e sa'es pro"ess.

Getting the %ery best &rom a sa'es team (hi'st 'iaising (ith other department to ensure business potentia' is ma-imi5ed and gro(th a"hie%ed.

NSM Salar. & Con,ition

!a'es Manager (i'' pay attra"ti%e remuneration (ith "omparing the mar et trends .he pa" age in"'udesH Sub/e t Month'y !a'ary Kehi"'e Kehi"'e maintenan"e 6ue' 6ood and *odging .e'ephone Annua' /onus )nsuran"e @ea'th )nsuran"e ;%erseas .ra%e'ing A!ount Rs.700,000JB Rs.100,000 Rs.70,000JB Rs.10,000 Rs.10,000JB Re!ar&s Company "ar (i'' be gi%en (ith +ri%er Per month An'imited &ue' (i'' be paid. .he &igure is assumption @ote' bi'' (i'' be paid &or 8 days per month outstation tra%e''ing An'imited Mobi'e bi''s (i'' be paid. .he &igure is assumption #i'' be paid based on "ompany pro&it Persona' A""ident Co%er 8ntire &ami'y (i'' be "o%ered per annum 6u'' "ost (i'' be beard by the "ompany (hen attend "ompany re'ated business

Rs.2000,000JB Rs.300,000JB

Assistant Sales Manager 6 1ob Des ri%tion

13

.it'e *o"ation

Assistant !a'es Manager 1 A!M2 Retai'er Corporate Go%ernment B#est region 1/ased on Kandy Regiona' o&&i"e2 B!outh Region 1 /ased on Ga''e regiona' ;&&i"e 2 B @ead o&&i"e B @ead ;&&i"e

+epartment Reports to

!a'es Nationa' !a'es Manager

ASM 7 Role an, Res%onsibilit.

Assistant !a'es Managers primary &un"tion is to a"hie%e targets by the assigned sa'es sta&&. Managing Key a""ounts su"h as "orporate "'ients and a""ountab'e &or he'ping them to se'e"t best produ"t &or their %ehi"'es, and pro%iding the greatest 'e%e' o& "ustomer ser%i"e

Gi%ing proper guidan"e to the !a'es 8-e"uti%es 6ami'iarity (ith sa'es, territory management, and 'ead generation !trong goa' atta"hment and a proa"ti%e approa"h to prob'em so'%ing 8-"eptiona' time management s i''s Abi'ity to moti%ate and 'ead a team +e%e'op to 'ongBterm re'ationships (ith senior management

ASM 7 Entr. Re8uire!ents

M/A or any other degree &rom the re"ogni5e uni%ersity or Post Graduate +ip'oma in Mar eting 1 PG+ip M 2 at !*)M @a%ing <B3 years e-perien"e in the &ie'd o& !a'es management and ha%ing pro%en tra" re"ord (ou'd be distin"t ad%antage Managing and moti%ating sa'es team to a"hie%e the targets +edi"ated to de'i%ering great "ustomer ser%i"e and to negotiate (ith "orporate "'ients as (e'' as sta e ho'ders (ithin the gi%en parameters 8-"e''ent Moti%ator L team p'ayer (ith high energy, resu't dri%en, hands on 14

Abi'ity to (or (e'' under pressure (ith a dead'ines and ha%ing positi%e attitude and interpersona' s i''s

8-"e''ent "ommuni"ation and ;rgani5ationa' s i''s Abi'ity to intera"t (ith sta&& members at a'' 'e%e's (ithin the "ompanyH Abi'ity to hand'e sensiti%e sta&& issues both "on&identia''y and pro&essiona''yH and Must ha%e (ritten and %erba' &'uen"y in 8ng'ish

ASM 7 Salar. & Con,ition

Assistant !a'es Manager (i'' re"ei%e attra"ti%e remuneration and more bene&its .he Pa" age in"'udesH Sub/e t Month'y !a'ary Commission Kehi"'e Kehi"'e Maintenan"e A''o(an"e 6ue' A''o(an"e 6ood and *odging .e'ephone Annua' /onus )nsuran"e @ea'th )nsuran"e A!ount Rs.100,000JB 0.34 Rs.I3,000JB Rs.<0,000JB Rs.6000JB Rs.3,000JB Re!ar&s ;ut o& the 134 o& tota' sa'es in"ome Company o(ned "ar (i'' be gi%en Per month Per month Per day up to 8 days per month &or outstation tra%e''ing Mobi'e bi''s up to the 'imit #i'' be paid on based on "ompany pro&it Persona' A""ident Co%er per indi%idua' per annum 8ntire &ami'y (i'' be "o%ered per annum

Rs.1000,000JB Rs.230,000JB

Sales E$e uti-e 6 1ob Des ri%tion

.it'e *o"ation !a'es 8-e"uti%e 1 !82 Retai'er Corporate B#est region 1/ased on respe"ti%e distri"t2 B!outh Region 1 /ased on respe"ti%e distri"t 2 B @ead o&&i"e 15

Go%ernment +epartment Reports to !a'es

B @ead ;&&i"e

Respe"ti%e Assistant !a'es managers

SE 7 Role an, Res%onsibilit.

!a'es 8-e"uti%e primary &un"tion is to a"hie%e the gi%en targets by the "ompany Managing Key a""ounts su"h as "orporate "'ients and a""ountab'e &or he'ping them to se'e"t best produ"t &or their %ehi"'es, and pro%iding the greatest 'e%e' o& "ustomer ser%i"e )denti&ies business opportunities by identi&ying prospe"ts and resear"hing sa'es options. Maintains re'ationships (ith "'ients by pro%iding support, in&ormation, and guidan"e Maintains $ua'ity ser%i"e by estab'ishing and en&or"ing organi5ation standards. Co'd "a''ing to arrange meetings (ith potentia' "ustomers to prospe"t &or ne( business A"ting as a "onta"t bet(een a "ompany and its e-isting and potentia' mar ets Gathering mar et and "ustomer in&ormation and to gain "'ear understanding o& "ustomersG businesses and re$uirements Re"ording sa'es and order in&ormation and sending "opies to the reporting o&&i"er

SE 7 Entr. Re8uire!ent

6u''y or part'y $ua'i&ied Post Graduate +ip'oma in Mar eting 1 PG+ip M 2 at !*)M and or

Any other /usiness Management +ip'oma or re'ated dis"ip'ine, and pro&essiona' sa'es training (ou'd be a distin"t ad%antage

Minimum o& < years o& su""ess&u' sa'es e-perien"e in the &ie'd o& tyre industry 6ami'iarity (ith sa'es, territory management, and 'ead generation !trong goa' atta"hment and a proa"ti%e approa"h to prob'em so'%ing 16

8-"eptiona' time management s i''s !e'& moti%ated, Positi%e attitude and interpersona' s i''s +e%e'op 'ongBterm re'ationships (ith senior management .o be ab'e to (or (ith 8ng'ish 'anguage

SE 7 Salar. & Con,ition

!a'es 8-e"uti%es (i'' re"ei%e attra"ti%e remuneration and the pa" age (ou'd beH Sub/e t Month'y !a'ary Commission Kehi"'e Motor Cy"'e Maintenan"e A''o(an"e 6ue' A''o(an"e 6ood and *odging .e'ephone Annua' /onus )nsuran"e @ea'th )nsuran"e A!ount Rs.<0,000JB <4 Re!ar&s ;ut o& the 134 o& tota' sa'es in"ome Company o(ned motor "y"'e (i'' be gi%en Per month Per month Per day up to 8 days per month &or outstation tra%e''ing Mobi'e bi''s up to the 'imit #i'' be paid on based on "ompany pro&it Persona' A""ident Co%er per indi%idua' per annum 8ntire &ami'y (i'' be "o%ered per annum

Rs.3,000JB Rs.3,000JB Rs.2,300JB Rs.7,000JB

Rs.300,000JB Rs.100,000JB

Setting u% target %lan

#hen setting up a target p'an &or the ne-t t(o years &or the "ompany, &o''o(ing assumptions ha%e ta en in to "onsideration. .he !ri *an an .yre mar et "onsidered to be 1,000,000 ne( .yre units per annum. .he "ompany %ision is to grab <04 mar et share (ithin t(o years time. /ased on that assumption, &o''o(ing target has been de%e'oped &or ea"h department.

17

Target Distribution a!ong Assistant Sales Managers De%art!ent Retai'er Corporate Go%ernment Designation A!M 1 A!M 2 A!M < A!M 7 Total Mont4l. Target T.re )nits 6,000 6,300 6,700 3,600 29:;00 Annual Target T.re )nits I2,000 I8,000 I6,800 6I,200 2<9:000

.ota' "ompany target is to se'' 2M7,000JB tyre units per annum.

Target ,istribution a!ong Sales E$e uti-es De%art!ent Designation No o* Sales E$e uti-es 12 1< 8 8 9" Mont4l. Target T.re )nits 300 300 800 I00 2:;00 Annual Target 2er E$e uti-e T.re )nits 6,000 6,000 M,600 8,700 29:;00 Total Annual Target T.re )nits I2,000 I8,000 I6,800 6I,200 2<9:000

Retai'er

Corporate Go%ernment

!a'es 8-e"uti%e !a'es 8-e"uti%e !a'es 8-e"uti%e !a'es 8-e"uti%e Total

2ro,u t =ise Target

Company basi"a''y produ"es three types o& tyres *orry J .ru" .yres Car J %an .yres @ea%y Kehi"'es .yres

2ro,u t =ise Target *or ea 4 ,e%art!ent

De%art!ent No o* E$e uti-es 2ro,u t T.%e Mont4l. Target T.re )nits 200 200 100 Total Mont4l. Target T.re )nits 3,000 3,000 2,300 Total Annual Target T.re )nits 60,000 60,000 <0,000 18

Retai'er

23

*orryJ.ru" Car J Kan @ea%y Kehi"'es

Corporate Go%ernment Total

8 8 9"

*orryJ.ru" Car J Kan @ea%y Kehi"'es *orryJ.ru" Car J Kan @ea%y Kehi"'es

200 <00 <00 200 <00 200

1,600 2,700 2,700 1,600 2,700 1,600 29:;00

1M,200 28,800 28,800 1M,200 28,800 1M,200 2<9:000

.ota' annua' produ"tion o& ea"h .yre "ategories (ou'd be, 2ro,u t Catoger. *orry J .ru" .yres Car J Kan .yres @ea%y Kehi"'e .yres Total Annual )nit o* 2ro,u tion M8,700 11I,600 I8,000 2<9:000

2ro,u t 2ri ing

6o''o(ing are the end user pri"es. .he Pri"es based on (ith "omparison o& the "ompetitor pri"es to simi'ar "ategory. *orry J .ru" Car J Kan @ea%y Kehi"'es B Rs.<0,000 B Rs,20,000 B Rs.70,000

Sales 'n o!e Mont4l. Sales 'n o!e

/ased on the abo%e pri"es, &ore"asted sa'es in"ome as &o''o(s, De%art!ent No o* E$e uti-es 2ro,u t T.%e Cost %er T.re )nit <0,000 20,000 70,000 <0,000 20,000 70,000 <0,000 20,000 70,000 Total Mont4l. Target T.re )nits 3,000 3,000 2,300 1,600 2,700 2,700 1,600 2,700 1,600 Total Mont4l. Sales 'n o!e

Retai'er Corporate Go%ernment

23 8 8

*orryJ.ru" Car J Kan @ea%y Kehi"'es *orryJ.ru" Car J Kan @ea%y Kehi"'es *orryJ.ru" Car J Kan @ea%y Kehi"'es

130,000,000 100,000,000 100,000,000 78,000,000 78,000,000 M6,000,000 78,000,000 78,000,000 67,000,000 19

Total

9"

29:;00

>02:000:000

Annual Sales 'n o!e /ased on the Month'y in"ome &o''o(ing are the Annua' sa'es )n"ome, De%art!ent No o* E$e u ti-es 2ro,u t T.%e Cost %er T.re unit Annual Target T.re )nits 60,000 60,000 <0,000 1M,200 28,800 28,800 1M,200 28,800 1M,200 2<9:000 Total Annual Sales 'n o!e

Retai'er Corporate Go%ernment Total

23 8 8 9"

*orryJ.ru" Car J Kan @ea%y Kehi"'es *orryJ.ru" Car J Kan @ea%y Kehi"'es *orryJ.ru" Car J Kan @ea%y Kehi"'es

<0,000 20,000 70,000 <0,000 20.000 70,000 <0,000 20,000 70,000

1,800,000,000 1,200,000,000 1,200,000,000 3I6,000,000 3I6,000,000 1,132,000,000 3I6,000,000 3I6,000,000 I68,000,000 ?:929:000:000

Sales 'n o!e Distribution

/ased on the abo%e pri"ing Annua' in"ome (i'' be distributed as &o''o(s, 'te! +istributer J +ea'er J Agent Commission Produ"tion Cost N ;ther CostN *abor !a'es Cost N !a'es Commission N Company Pro&it Total 2er entage <34 304 134 "00@ Allo ate, A!ount 2,M78,700,000 7,212,000,000 1,26<,600,000 ?:929:000:000

Sales Sta** Salar. Fore ast

Designation !a'es Manager Assistant !a'es Managers No o* Sta** 01 07 Mont4l. Salar. 2er 4ea, <00,000 100,000 Mont4l. Total Salar. <00,000 700,000 Annual Fi$e, Salar. <,600,000 7,800,000

20

8-e"uti%es Total

71 9A

<0,000

1,2<0,000 ":<#0:000

17,I60,000 2#:"A0:000

Company (i'' pro%ide Motor Car to !a'es manager 7 Assistant !a'es managers Company (i'' pro%ide Motor Cy"'es to 71 8-e"uti%es )n addition to Company pay Kehi"'e Maintenan"e "harges N 6ue' a''o(an"es to the respe"ti%e !a'es Persona'

Sales Sta** Allo+an es

Designation No o* Sta** Mont4l. =e4i le Maintenan e Allo+an e 130,000 I3,000 3,000 Mont4l. Fuel Allo+an e 70,000 <0,000 3,000 Total Mont4l. Allo+an e 1M0,000 720,000 710,000 ":020:000 Total Annual Cost

!a'es Manager Car Assistant !a'es managers : Car 8-e"uti%es Motor Cycles Total

01 07 71 9A

2,280,000 3,070,000 7,M20,000 "2:290:000

Fore aste, Sales Co!!ission

Note9 Commission Ca'"u'ated based on 134 o& the .ota' !a'es A!M (i'' re"ei%e 0.34 o& retained sa'es in"ome !a'es 8-e"uti%e (i'' re"ei%e <4 o& retained sa'es in"ome De%art! ent Designation No o* Sta** Co! !iss ion Mont4l. Sales Target 6 Mont4l. o!!issi on %er Total Annual Co!!ission

21

@ !a'es Manager A!M 1)2 Retai'er !a'es 8-e"uti%es A!M 1))2 Retai'er !a'es 8-e"uti%es A!M 1)))2 Corporate !a'es 8-e"uti%e A!M 1)K2 Go%ernm !a'es ent 8-e"uti%e Total 01 01 12 01 1< 1 8 1 8 9A No

2er 4ea,

4ea, No 126,000 6<,000 1<6,300 6<,000 177,000 108,000 120,000 M0,000

No 1,312,000 M,0I2,000 1,6<8,000 M,828,000 1,I28,000 10,<68,000 1,770,000 8,670,000 99:22A:000

0.34 168,000,000 17,000,000 <4 0.34 182,000,000 17,000,000 <4 0.34 1M2,000,000 27,000,000 <4 0.34 160,000,000 20,000,000 <4 >02:000:000

Total Sales sta** E$%enses "Salary* +e icle Maintenance * Commission%

Designation Salar. =e4i le !aintenan e B Fuel 170,000 720,000 710,000 <>0:000 E$%e te, Mont4l. Co!!ission Total 0 326,300 <,13M,000 #:A?;: 000 370,000 1,<76,300 7,IMM,000 A:A?;:;00 Annual Total 6,780,000 16,138,000 3I,388,000 ?0:22A:000

!a'es Manager 7 A!M 71!a'es 8-e"uti%e Total

700,000 700,000 1,2<0,000 2:0#0:000

A-erage Sales Sta** 'n o!e

A%erage !a'es !ta&& in"ome sho(s that "ompany pay attra"ti%e remuneration &or ea"h "ategory o& sa'es sta&& Designation !a'es Manager A!M !a'es 8-e"uti%e Annual 'n o!e 2er 4ea, 6,780,000 16,138,000 3I,388,000 Mont4l. A-erage 'n o!e 370,000 <<6,623 11I,07M

Ot4er E$%enses *or t4e Sales Sta** Lo,ging

22

*odging (i'' be paid (ith a ma-imum 'imit o& 8 days outing per month Ma$i!u! Li!it o* Lo,ging %er ,a. 10,000 6,000 2,300 Cu,gete, Lo,ging %er !ont4 80,000 1M2,000 820,000 ":0<2:000 Total Cu,gete, Lo,ging %er Annu! M60,000 2,<07,000 M,870,000 "#:"09:000

Designation

!a'es Manager Assistant !a'es Manager !a'es 8-e"uti%es Total

Tele%4one E$%enses
Mobi'e /i''s (i'' be paid by the "ompany (ith a ma-imum 'imit Designation !a'es Manager Assistant !a'es Manager !a'es 8-e"uti%e Total Ma$i!u! 24one Cill Allo ate, 2er Li!it !ont4 An'imited 10,000 I300 <0,000 7000 167,000 209:000 Allo ate, %er Annu! 120,000 <60,000 1,M68,000 2:99?:000

'nsuran e
!ta&& (i'' "o%er by Persona' A""ident Co%er as (e'' as !urgi"a' and @ospita' Co%er Designation 2ersonal A i,ent Co-er 2000,000 1000,000 300,000 E$%e te, Cost %er Annu! 2000
"2###,--1%

Surgi al an, Dos%ital Co-er 300,000 230,000 100,000

Nationa' !a'es Manager Assistant !a'es Manager !a'es 8-e"uti%es Total

E$%e te, Cost %er Annu! <3000

").!###,--1%

6000
"1.##,--/%

I0000
"1$.##,--/%

31230
"12.#,--/1%

710,000
"1#!###,--/1%

;<:2;0

;";:000

!urgi"a' and @ospita' )nsuran"e Co%ered entire &ami'y (ith ;P+ bi'' payment. )n addition to this, Annua' /onus (i'' be paid based on the "ompany pro&it.

23

'n o!e an, E$%enses Co!%arison

Annual Total Sales 'n o!e !a'es !ta&& 8-penses ;ther 8-penses 1 *odging, .e'ephone, )nsuran"e 2 Total E$%enses /a'an"e )n"ome 80,226,000 16,06I,000 <A:2<#:000 1,16I,<0I,000 I.624 M2.<84 Total 1,26<,600,000 2er entage @ 1004

Company (i'' remain M2.<84 /a'an"e in"ome (hi"h is about Rs.1,16I Mi''ion

Sales For e Re ruit!ent ',enti*.ing t4e s&ill *or a sales /ob

!a'es Person=s s i'' %aries &rom one to another depends the nature o& their sa'es 0ob and type o& produ"t they hand'ed. !ome o& the s i''s are a) !e'&Bmoti%ation !a'es representati%e shou'd be se'& moti%ated and to eep their esteem high to o%er"ome any sort o& dis"ouragement o""urs (hen the sa'es get re0e"ted. b) 6ast 'earner !a'es representati%e shou'd ha%e the abi'ity to grasp and understand the ne( "on"epts $ui" 'y. .hey shou'd beha%e as pro&essiona's in &ront o& a serious "ustomer and to maintain "ompany standard. c) Good "ommuni"ation s i''s !a'es representati%e shou'd ha%e a de"ent 'e%e' o& "ommuni"ation s i''s as re$uired by the "ompany. d) Positi%e attitude and beha%ior .he attitude is a s i'' (hi"h "annot in"u'"ate through training. @en"e one has to de%e'op positi%e attitude by o%er se'&. !a'es peop'e must ha%e a positi%e attitude and beha%ior to(ards the "ustomers.

T4e re ruit!ent %ro ess

24

Re"ruitment pro"ess is %ery important to the "ompany to se'e"t right "andidates and short 'ist them &or the inter%ie(. .he "andidates "an "ome &rom many sour"es as, )nterna' !our"es )denti&ying emp'oyees (ithin the "ompany 8-terna' !our"es Candidates "an be se'e"ted &rom outside the "ompany

Sele tion 2ro ess

A su""ess&u' re"ruitment pro"ess enab'es the high'y ta'ented 'ist o& "andidates (ho "ou'd be emp'oyees o& the organi5ation. Care&u''y shortB'isted ! i''s mat"h as mentioned by the 0ob des"ription

Karious parameters use &or re"ruitment pro"ess "andidates &ami'y ba" ground, emp'oyment history, edu"ationa' $ua'i&i"ations,

2reli!inar. 'nter-ie+
)s a pro"ess to &i'ter the "andidates (ho do not &it &or the 0ob 8%a'uate the "andidate=s s i'' as per the 0ob des"ription Attitude, "ommuni"ation s i''s and ana'yti"a' s i''s are %ery important Pre%ious (or e-perien"es and re&eren"es shou'd be "ross "he" ed

Training
.raining is an a"ti%ity to deri%e the best possib'e e&&orts &rom an emp'oyee that "ontributes su""ess&u''y to the per&orman"e o& a 0ob in an organi5ation.

25

Training 2rogra! Ob/e ti-es .o ma e sa'es peop'e tota''y &it &or the 0ob .o moti%ate them to impro%e their sa'es produ"ti%ity and earn pro&its &or the organi5ation Create positi%e attitudes and impro%e sa'es personne' mora'e

6o''o(ing are the proposed training program &or the !a'es 6or"e .e"hni"a' training &or the !a'es 6or"e regarding .yre manu&a"turing and its .e"hno'ogies Customer Care .raining &or the !a'es !ta&& as (e'' as support sta&& Positi%e thin ing and Grooming session &or the sa'es sta&& .ime management and produ"ti%ity impro%ement session ;n the 0ob training &or the 0unior 8-e"uti%es (ith Assistant !a'es Managers and !enior 8-e"uti%es

Managing Sales Training 2ro ess

Asses !a'es .raining Needs !a'es training need assessment dea's (ith identi&ying the ne"essary s i''s, attitudes, per"eptions and beha%iors o& the sa'es representati%es !et .raining ;b0e"ti%es !etting up the training ob0e"ti%es (ith ne"essary measurab'e out"ome o& the training program +esign !a'es .raining Program +esign the training program (hi"h in%o'%es identi&ying the training program period and modu'es and the ne"essary s i''s to be imparted, 'ogisti"s arrangements et". Per&orm !a'es .raining A"tua' imp'ementation o& the sa'es training program (hi"h dea's (ith the (ay ho( the training is "ondu"ted and the methodo'ogies adopted by the trainer Condu"t 6o''o( up and 8%a'uation 26

6o''o(Bup and e%a'uation dea'ing (ith ana'y5ing the $ua'ity o& training program he'd and the bene&it re"ei%ed by the "andidates and the organi5ation need to be "ondu"ted

Moti-ation
!a'es Manager=s ma0or responsibi'ity is to eep up moti%ation 'e%e' o& the !a'es 6or"e to get 1004 a"hie%ement. .here are many de&initions and (e ha%e se'e"ted &o''o(ingH

Moti-ational *a tors
Co!%ensation s 4e!eE %a &age ;ne o& the most attra"ti%e and en"ouraging &a"tor &or moti%ation is the "ompensation pa" age &or sa'es sta&&. ;rgani5ations tend to pu'' in the best ta'ent by o&&ering e&&e"ti%e "ompensation pa" ages. 6i%e step approa"h in designing a sa'es "ompensation pa" age as, a) Prepare 0ob des"riptions Oob des"ription shou'd be prepared to ta e "are o& a'' the 0ob responsibi'ities that the sa'es representati%e (i'' per&orm. b) 8stab'ishing sa'es and other ob0e"ti%es @igh'ight the importan"e o& measuring the sa'es targets a"hie%ed and a'so other ob0e"ti%e in determining the "ompensation pa" age. Number o& ne( "ustomers in"reased, +i&&i"u'ty 'e%e's in the sa'e ha%e to be ta en into a""ount. c) +etermine appropriate genera' "ategories !e%era' &a"tors 'i e edu"ation, e-perien"e, s i'', nature o& (or re"ei%e the same "ompensation pa" ages. d) +e%e'op and pretest the "ompensation p'an 27 (i'' ha%e to "onsider. .his pro"ess (i'' he'p to a'ign the peop'e o& simi'ar abi'ities or s i''

Compensation pa" age shou'd &o"us the 'i%ing e-penses and the %ariab'e "omponent 'i e "ommissions. e2 )mp'ement and e%a'uate the p'an imp'ementation and monitoring the e&&e"t o& the "ompensation pa" age in maintaining the re$uired moti%ation 'e%e' and attra"ting the ta'ented peop'e to the organi5ation

'n enti-es
!o many in"enti%es s"hemes ha%e been proposed to eep !a'es 6or"e moti%ation 'e%e' up. !ome o& the in"enti%es are, Kehi"'e J Motor Cy"'e pro%ide by the "ompany 6ue' Consumption and Maintain (i'' be ab'e to reimbursement Commission (i'' be paid on target a"hie%ement 6ood and *odging "harges (i'' be ab'e to reimbursement Mobi'e phone bi''s (i'' be ab'e to reimbursement )nsuran"e su"h as Persona' A""ident Co%er J Medi"a' Co%er is in &or"e

Co!%ensation
.here are se%era' "ompensation pa" ages using to moti%ate sa'es sta&& Finan B B B ial Co!%ensation Straig t Salary : A'' the !a'es !ta&& re"ei%e 6i-ed !a'ary Commission Commission (i'' be paid &or dire"t'y in%o'%ed !a'es Persona' Commission 0ase Commission has been based on the A"hie%ement Commission rate Attra"ti%e Commission rate has introdu"ed 1erformance Bon2s Pear end /onus (i'' be paid based on "ompany pro&it

Non Finan ial Co!%ensation ;pportunity &or Promotion Company has @uman Resour"e P'an that opportunity &or promotions. !ense o& A""omp'ishment Company (i'' introdu"e Annua' sa'es Con&eren"e to re"ogni5e best a"hie%ers ;pportunity &or Persona' Gro(th 28

Company has is'and (ide net(or o& sa'es &or"e. .here (i'' be great opportunity to persona' gro(th Re"ognition Company brand has %ery good re"ognition in the mar et. 8mp'oyee may use "ompany brand %a'ue &or their re"ognition. Oob !e"urity 8%ery emp'oyee has &i-ed sa'ary and attra"ti%e in"enti%es. .heir 0ob se"urity is %ery high. 6ringe /ene&its Company (i'' pro%ide 'o"a' and o%erseas training to the best a"hie%ers. Annua' trip (i'' be organi5ed (ith a'' sta&& and their &ami'y members

Re+ar,
Company (i'' pro%ide an a""eptab'e ratio o& "osts and sa'es &or"e output in %o'ume to the sta&& as re(ard 8n"ourage spe"i&i" a"ti%ities su"h as a"hie%ing o%er 1004 target (i'' re"ei%e spe"ia' re"ommendation !pe"ia' remuneration (i'' be ab'e to attra"t and retain "ompetent sa'espeop'e

2er*or!an e E-aluation
Company (i'' be "arried out appraisa' in t(o times per annum as year and midyear basis. .his (i'' e%a'uate and en"ourage sa'es sta&&. '!%ortan e o* 2er*or!an e E-aluation .o ensure that "ompensation and other re(ard disbursements are "onsistent (ith a"tua' sa'esperson per&orman"e Management "an identi&y the sa'es te"hni$ues @e'ps in !a'es !uper%ision .o pro%ide in&ormation &or e&&e"ti%e human resour"e p'anning

2ros an, Cons o* Sales Manage!ent 2ro ess !traight !a'ary

Paying sa'espeop'e a straight sa'ary is un"ommon. !u"h p'ans are (e'' suited &or paying sa'es support personne' and sa'es trainees. !traight !a'ary B Ad%antage 29

)t is simp'es to administer, (ith ad0ustment usua''y o""urring on"e a year. /e"ause sa'aries are &i-ed "ost, p'anned earnings &or the sa'es &or"e are easy to pro0e"t, (hi"h &a"i'ities the sa'es &or"e budgeting pro"ess. More "ontro' on non se''ing a"ti%ities !traight B +isad%antages No &inan"ia' in"enti%e to impro%e per&orman"e, pay o&ten based on seniority, not merit, sa'aries may be a burden to ne( &irms or to those in de"'ining industries.

Commissions
Commission B Ad%antages )n"ome 'in ed to resu'tsH strong &inan"ia' in"enti%e to impro%e resu'tH "ost redu"e during s'o( sa'es periodH 'ess operating "apita' re$uired. Commission B +isad%antages +i&&i"u't to bui'd 'oya'ty o& sa'es &or"e to "ompany and 'ess "ontro' o& non se''ing a"ti%ities

Per&orman"e /onuses
Per&orman"e /onus B Ad%antages ;rgani5ation "an dire"t emphasi5e to (hat it "onsider important in the sa'es area. !a'es emphasi5e "an be "hanged &rom period to period Per&orman"e /onus B +isad%antages +i&&i"u't to determine a &ormu'a &or a "a'"u'ating bonus a"hie%ement i& the ob0e"ti%e is e-pressed in sub0e"ti%e terms

Combination p'ans 1 !a'ary p'us in"enti%e 2

Combination P'ans B Ad%antages 6'e-ibi'ity a''o(s &re$uent re(ard o& desired beha%iorH may attra"t high potentia' but unpro%en re"ruit Combination P'an B +isad%antages Comp'e- to administerH may en"ourage "risis oriented ob0e"ti%es

30