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Sales Strategies For Slow Moving Items

This report is an academic research conducted in a commercial company in Cameroon who deals with the sales of building materials, houshold equipments and furnitures. This company been the leader in its industry, faces challenges among which are the accumulation of stock of some of its products. Our work was aimed at detecting the difficulties it faces and bring out solutions to overcome them.

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0% found this document useful (0 votes)
193 views58 pages

Sales Strategies For Slow Moving Items

This report is an academic research conducted in a commercial company in Cameroon who deals with the sales of building materials, houshold equipments and furnitures. This company been the leader in its industry, faces challenges among which are the accumulation of stock of some of its products. Our work was aimed at detecting the difficulties it faces and bring out solutions to overcome them.

Uploaded by

lemusicien
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.

A –
NDOGPASSI DOUALA-CAMEROON.

CERTIFICATION

This is to certify that the research report titled “SALES STRATEGIES FOR
LOW SELLING PRODUCTS: CASE OF SOREPCO S.A DOUALA,
CAMEROON”, was carried out by KAMGHA BAUGNIE EMMAUNEL
BLAISE which meets the requirements and regulations governing the award of
the HIGHER NATIONAL DIPLOMA(HND) in MARKETING TRADE AND
SALES in the UNIVERSITY INSTITUTE OF GULF OF GUINEA (IUG)
Douala

Academic Supervisor PROFESSIONAL SUPERVISOR

Mr. TEZETE LEON Mr. TENNING SIMPLICE

SIGNATURE SIGNATURE

………………… ………………….

DATE…/…. /…. DATE…/…. /….

WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE I


SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.

DEDICATION

TO THE BAUGNIE’S FAMILY

WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE II


SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.

ACKNOWLEDGEMENT

This work was finalized with the immense help of many people to whom I could only
express my gratitude and appreciate their help. I acknowledge the support of;
My academic supervisor Mr. TEZETE LEON

My professional supervisor Mr. TENNING SIMPLICE

And to all my teachers and Classmates who contributed in one way or another
to make this report happen

WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE III


SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.

ABSTRACT

If sale is mostly considered as a transaction between two or more parties in which the
buyer receives goods (tangible or intangible), services, or assets in exchange for
money, the rate of sales of all tangible goods varies from one business to another and
from one place to another. This could be due to several reasons as what could be
considered as slow moving in one business or place could be fast moving in another.
However, a good marketing and sales strategy will contribute in either reversing or
boosting the sales of what was considered as dormant (slow moving) goods. The
purpose will be to analysis these slow moving goods with the use of a sales tool
called the sales funnel and see to which categories of buyers could these goods be
proposed. According to the business unit where this work was carried on, a product is
considered slow moving if it records a slow selling frequency for a period of three
(03) months. Some weaknesses in the rate of sales of these products are; poor method
of merchandising, poor method of prospection, low customer awareness, little or no
market survey, non-competitive prices. These failures prompted us to write on the
topic << SALES STRATEGIES FOR SLOW MOVING ITEMS>>.

To resolve these problems, we propose a revision of their merchandising method, a


revision of their prospection method, customer follow-up, and a market survey on the
prices of low selling goods. A good realization of this work couldn’t be possible
without primary data such observation and secondary data such as documents.

WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE IV


SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.

RESUME

Si la vente est principalement considérée comme une transaction entre deux ou


plusieurs parties dans laquelle l'acheteur reçoit des biens (corporels ou immatériels),
des services ou des actifs en échange d'argent, le taux de vente de tous les biens et
services tangibles varie d'une entreprise à l'autre et d'un endroit à un autre. Cela peut
être dû à plusieurs raisons, car ce qui pourrait être considéré comme une vente faible
dans une entreprise ou un endroit pourrait être une vente rapide dans un autre.
Cependant, une bonne stratégie de marketing et de vente contribuera soit à inverser,
soit à augmenter les ventes de ce qui était considéré comme des produits dormants
(faibles ventes). Il s'agira d'analyser ces produits peu vendus à l'aide d'un outil de
vente appelé l'entonnoir de vente et de voir à quelles catégories d'acheteurs ces
produits pourraient être proposés. Selon l’entreprise où ce travail a été effectué, un
produit est considéré comme faiblement vendu s'il enregistre une faible fréquence de
vente pendant une période de trois (03) mois. Certaines faiblesses dans le taux de
vente de ces produits sont ; mauvaise méthode de merchandising, mauvaise méthode
de prospection, faible notoriété des clients, peu ou pas d'étude de marché, prix non
compétitifs. Ces échecs nous ont incités à écrire sur le thème << STRATÉGIES DE
VENTE POUR LES PRODUITS À FAIBLE VENTE>>.

Pour résoudre ces problèmes, nous proposons une révision de leur méthode de
merchandising, une révision de leur méthode de prospection, un suivi client, une
étude de marché sur les prix des produits bas de gamme. Une bonne réalisation de ce
travail ne pourrait être possible sans des données primaires telles que l'observation et
des données secondaires telles que des documents.

WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE V


SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.

PREFACE
Anxious to educate its population and aware that she can’t achieve this desire goal
alone, the government of Cameroon turns to favor the education and training of
young Cameroonians in the domain of vocational and professional training for the
purpose of building up their professional skills to provide a substantial income for
one’s life to continue in existence so as to meet up with needs and reduce the rate of
unemployment in the country.

In this respect, order No 008/CAB/PR of 19/03/1999 brought about the creation of


state universities and Higher Professional Institutions from which ESG-IST-ISA
solicited. It is for this reason that Institution University of Gulf of Guinea [IUG] was
created by ministerial order No 05/0022 and 0/0038 MINESUP. It is made up of three
institutions namely; Advanced School of Management [ESG], Higher Institute of
Advanced Technology [ISTA] and Higher Institute of Applied Sciences [ISA].

This institution trains students to obtain a Higher National Diploma [HND], Brevet
de Technicien Supérieur [BTS] and also Bachelors and Master degrees. This
institution offers training in the following professions for English students of the ESG
section. Marketing, Accounting, Banking and Finance, Management, Executive
Secretary Studies, Logistics and Transport Management.

The HND examination involves a practical, written exam and an internship report.
This internship is carried out at the first level for two months in any enterprise of the
candidate’s choice. This report is in partial fulfillment for the award of a Higher
National Diploma certificate.

WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE VI


SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.

IDENTIFICATION SLIP

SOCIAL NAME SOCIETE DE REPRESENTATION ET


DE COMMERCE
ACRONYM SOREPCO
JUDICIAL STATUS S.A
DATE OF CREATION 1989
PRINCIPAL ACTIVITY SALES OF BUILDING MATERIAL
AND HOUSE HOLD EQUIPMENTS
NUMBER OF EMPLOYEES MORE THAN 100 EMPLOYEES
Po Box 2854 DOUALA
ADDRESS SALLE DES FETES, DOUALA
CAMEROUN
Email info@groupesorepco.com
Telephone (237) 6 999 66 000

WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE VII


SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.

TABLE OF CONTENT

WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE VIII


SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.

GENERAL INTRODUCTION

CONTEXT

SALES are activities related to selling or the number of goods sold in a given
targeted time period. The delivery of a service for a cost can also be considered a sale.

A sales strategy is defined as a documented plan for positioning and selling your
product or service to qualified buyers in a way that differentiates your solution
from your competitors. Sales strategies are meant to provide clear objectives and
guidance to your sales organization.

SLOW MOVING ITEMS are goods or products with a low turnover rate and are
stored in the warehouse for much longer period. Generally, slow-moving items
include the goods that are stored for more than three months and takes time to be sold.

Problem Statement
During our internship, we noticed that some items had a slow rate of turn over. It
should be noted that nothing scares an organization like slow moving Items because it
does not only occupies space in the warehouse but ties up the business capital and
leaves less funds to invest into the business. It is therefore necessary to carefully
handle the case of slow moving items with tact. To ease the understanding of slow
moving items, the main question of our work is asked in this vein as follows:
What are the best sales strategies for slow moving item and how can it push slow
moving items at SOREPCO S.A to fast moving items?

WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE 1


SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.

Justification of Topic
During our internship at SOREPCO S.A, we noticed that despite the
efforts put in place by the commercial department to improve on sales in
its different branches; these efforts (sales strategies) were not effective
enough to fasten the turn-over of some items for a period of three months.
The weaknesses in these sales strategies to boost the sales of the different
branches inspired us to write on the topic “Sales Strategies for Slow
Moving Items: Case of SOREPCO S.A DOUALA-CAMEROON”

Objectives of Report
The main objective is to develop effective sales strategies for slow
moving items

For the specific objectives, it will focus on the factors that led to slow
moving items in the Ndogpassi branch and proposition of some sales
strategies that will improve on the sales of slow moving items.

Methodology used in Report


Concerning the methodology used, we obtained data from two major
sources Primary sources using internal documents and individual
interviews, and Secondary sources using textbooks and webs.

Structure in Parts

WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE 2


SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.

This report is structured in two major parts. Part one is on the internship
framework and is made of two chapters. Chapter one is on the general
presentation of SOREPCO S.A and chapter two is on the internship
activities. Part two is on the conceptual framework which is also made of
two chapters. Chapter three is on the practical aspects and chapter four is
on the critical analysis. The general conclusion gives perspectives related
to the problem statement.

WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE 3


SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.

PART ONE: INTERNSHIP


FRAME WORK
The internship framework includes the general presentation of SOREPCO
S.A and an overview of the internship activities we carried out during the
period of internship. The purpose of this part is to present the first two
chapters of our work and put this report in the specific context of
SOREPCO S.A.

WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE 4


SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.

CHAPTER ONE: GENERAL PRESENTATION OF


SOREPCO S.A

Here, we do a general presentation of SOREPCO S.A by giving the history and


evolutions of the enterprise in section one and the business environment of the
enterprise in section two.

SECTION ONE: CREATION AND HISTORICAL EVOLUTION OF


SOREPCO S.A

1.1.1: CREATION

In 1985, a small retail store was created under the acronym of JEMACO with the
number of its personnel limited to six people. That were; the CEO, an accountant,
two sales persons and two store handlers. The first agency of this retail outlet was
found at Mboppi a quarter in the city of Douala. The dominant activity of this retail
outlet was limited to the buying and selling of divers building materials within a
given period of time. Three years later, a second agency was created in AKWA
another quarter in the city of Douala.
In 1989 JEMACO became SOCIETE DE REPRESENTATION ET DE
COMMERCE which is popularly known today under the acronym of SOREPCO. It
is at this moment that the CEO presented his business plan to foreign partners and
won their trust.
The year2002 marks the growth phase of the SOREPCO group which left from
“Societe a responsabilite limite, SARL” (LTD) to “SOCETE ANONYME, S.A”
(PLC) with a number of employees which moving from half a dozen to more than
sixty. Ten years later, SOREPCO left from the small retail store specialized in selling
building materials to a general store with a significant geographical coverage.

WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE 5


SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.

Today, SOREPCO is a reference in the hardware and building materials market in


Cameroon with more than 20 agencies spread in almost all the 10 regions.

1.1.2: HISTORICAL EVOLUTION OF SOREPCO S.A

The year 1989 marks the creation of “SOCIETE DE REPRESENTATION ET DE


COMMERCE” which is popularly known today under the acronym SOREPCO. At
this stage, the CEO M LUCAS DJEMMO presented his business plan to foreign
partners and won their trust.
The year 2002 marks the growth phase of SOREPCO which left from a Limited
Liability Company (LTD) to a Public Limited Company (PLC) with a number of
employees which moved from half a dozen to more than sixty. Ten years later,
SOREPCO left from the small retail store specialized in selling building materials to
a general store with a significant geographical coverage.
Today, SOREPCO is a reference in the hardware and building materials market in
Cameroon with more than 20 branches spread in almost all the 10 regions as follows:
Douala: Mboppi-Akwa-Douche-Beach-Salles des fêtes-Bonamoussadi-Sodiko-Grand
Hanga- Ndogpassi-Yassa.
Yaoundé : Mokolo-Longkak-Hyper marche Mokolo-Coron-Emana-Messasi
Bafoussam : Tamdja-Djeleng
Bamenda
Kribi
Bertoua
Ngaoundere

SOREPCO’S VISION, OBJECTIVES AND ENGAGEMENT

VISION

SOREPCO S.A is keen to conquer the sub regional market, to feel the need to satisfy
both employees, suppliers and make profit.

WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE 6


SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.

OBJECTIVES
 Be competitive
 Provide good quality customer services
 Develop the skill of her staff
 Become the leader in general trade segment
ENGAGEMENT
SOREPCO PLC engages on:
 PRICE: the most competitive
 PRODUCT CHOICE: the best quality
 CUSTOMER SATISFACTION: advice, after-sales services and warranty

1.1.3: PRODUCTS AND SERVICES OFFERED BY

SOREPCO PLC
PRODUCTS
 FLOOR AND WALL TILE
 PAINTING
 ELECTRICITY
 SANITARY
 TAPWARE
 PLUMBING
 ZINC SHEET AND STEEL
 COLD AND AIR CONDITIONING
 HOME APPLIANCE
 MACHINES AND EQUIPMENTS
 HOME AND OFFICE REAL ESTATE
 FOOD PRODUCTS
 PLASTICS

WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE 7


SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.

SERVICES
 CONSTRUCTION SAVINGS
 CONSTRUCTION CREDIT

SECTION TWO: THE ORGANIZATION STRUCTURE AND


BUSINESS ENVIRONMENT OF SOREPCO S.A
SOREPCO has a centralized setup with power concentrated at the head office. It is in
this sense that information flows from the head office to the different branch
managers and to her subordinates. The task of each worker functions as well stated or
defined by the head office. The management team decides on the company’s
strategies and on the day to day operations of the various branches. A relationship is
created between employees both at the head office and those in the different branches
to collaborate as a team in other to meet with the company’s general objectives.

THE ORGANIZATIONAL STRUCTURE OF SOREPCO S.A

1.2.1. The Internal Environment of SOREPCO S.A


A company’s internal environmental variables consist of all the controllable variables
within the organization that influences its business activities. They include the
following; managerial, competitive, financial and technical factors. Analysis will be
conducted in the following paragraphs to show how SOREPCO S.A controls or
manages her internal environment.

WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE 8


SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.

 Managerial (employees) factor


The organization of SOREPCO branches where we carried our internship is
composed of a group of personnel carefully selected by the top management in other
to meet the company’s objectives. This factor provides the company with a visual
representation of how it is shaped and how it can best move forward in achieving its
goals. Its organogram shall be presented in one of the appendices below. (See
APPENDIX ONE)

 THE TOP MANAGEMENT: It is made up of decision makers of the


different departments at the head office amongst which are; the CEO, the
General Manager, Internal Audit, Management and Control Department, Legal,
Litigation and Risk Prevention Department, Financial Affairs Department,
Operations Department, Purchase Department, Logistics Department, Human
Resource Department, Accounting Department, Tax Department, Cash
Department, Maintenance Department, ITC Department, Security Department.
These different departments work in collaboration with the various employees
at the branches in other to help meet the company’s objective.
 The Branch Manager: He receives instructions from the head office and
transmits to the different subordinates for their execution. Some of his
functions are; to coordinate the different activities that will lead to the
achievement of the objective assigned to his branch by the head office, ensure
that instructions passed by the head office to his subordinates are respected and
implemented as well, decision taking, sanction recalcitrant employees who are
under his control, report the daily activities to the head office.
 The Operations Manager: This is an employee responsible for recording,
processing and storing of data resulting from documents that trace the different
commercial and non-commercial activities of the branch. The data which are
processed into information are stored in archives and in computers.

WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE 9


SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.

 Sales persons: They represent the front office of the branch because they are
in direct contact with customer. Their main purpose is to satisfy customers’
needs or wants. To meet up with their purpose, they have to perform some key
functions; receive customers, pay attention to their purchase order or
complains, propose the services of the company to customer, negotiate with
customers, persuade customers with facts, explain the benefit of purchasing a
product, the advantages of buying a product or service, etc. All these functions
played are to help close a purchase.
 The cashier: These are female employees whose functions are to guide and
verify that payments have been made through the different payment mode.
That is; through bank deposits, check orders, Mobile money, Orange money,
YUP, Express Exchange and Express Union before delivering a bill or a
receipt.
 The Stock Controller: This is an employee whose office is found at the exit
of every branch. He plays a key role in customers satisfaction in that; he
checks the conformity, the quality and quantity of the customer purchase order
found in the receipt before delivering the goods to customers.
 Sales assistances: These are employees whose functions are to assist the
sales persons and the stock controller in their physical efforts. They may
collect the needs of customers and direct them to the right sales person, they
may guide customers on what they want, show the product to customers, serve
the customers or assist in the verification of the purchase order and making the
order available to the stock controller for double checking before it is been
serve to customers.
 Security Agent: His role is to ensure the security of goods and people found
in the Agency both employees and customers.
 Ware house manager: He receives and manages the physical stock of goods
in the ware house.

WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE 10


SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.

 Competitive factor

This involves conducting an analysis by comparing your company’s internal


activities with those of competitors (rival and substitute firms). Here, we are
analysing our competitors in relation to our internal activities so as to identify
where we have a competitive advantage. In analysing, SOREPCO PLC
customer loyalty and satisfaction is reasonable as we witnessed during our time
at the company for internship.

 Financial factors

Financial factors refer to the firm’s cash flow level and capital structure. Due
to an increase of SOREPCO’s customer base, the ass to capital when required
is largely adequate.

 Technical factors

This involves an analysis of technical competence of workers within the


organization and the selling skills put in place. As concern technical factors,
SOREPCO PLC does well due to its state of the art equipment and very well
trained and qualified personnel.

1.2.2. The External Environment of SOREPCO S.A

This refers to a set of uncontrollable variables that influences the business activities
of SOREPCO PLC. They consist of micro uncontrollable and macro uncontrollable
factors.

The micro external environment of SOREPCO S.A includes the following:


 Company’s market (customers)
A company’s market is a group or a segment that an organization decides to serve. A
company’s market is the equivalent of a market segment. SOREPCO SA market

WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE 11


SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.

consists mainly of other businesses, including small and medium size enterprises and
big corporations.
 Competitors
Our direct competitors are those companies or firms who produce or sell the same or
similar items produced or sold by SOREPCO S.A that satisfy common customer
needs in the same way or substitute that satisfy the same customer needs differently.
In today’s market, organizations have to compete in order to widen their customer
base and increase their market shares. The success or failure of private sector
businesses depends on their ability to satisfy customers’ need better-than competitors.
SOREPCO PLC competitors in Cameroon include BERNABE, COGENI, FOKOU,
QUIFEROU, BATIRAMA, SUCSUBA, FOKA CONSTRUCTION, SONECOM X,
MASTER TOOL, PROMOTECH, ZATI CONSTRUCTION and ARNO ELECTRO-
MENAGER. It should be noted that no single marketing strategy is best for all firms.
Each firm must consider its size and industry position compared to those of
competitors. This is so because large firms with leader positions in the market can use
certain strategies that smaller ones cannot.

 Suppliers
These are firms and individuals that provide the resources needed by a company to
properly run her activities. The chance of an organization’s success is affected by its
ability to acquire the resources it needs to meet its own customers’ requirement. The
resources needed by SOREPCO S.A in order to operate are divers items provided by
local and foreign suppliers.
The macro external environmental factors are forces in the external environment
which have a general impact on the organization. They consist of large societal forces
that affect the whole micro environment. Here, the firm is faced by a complex set of
uncontrollable variables that collectively shape its markets, resources and the
competitive climate that pose challenges and opportunities that may determine the

WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE 12


SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.

success or failure of the company as a whole. They are grouped in the acronym
PESTEL which consist of the: Political, Economic, Social, Technological,
Ecological and Legal environment. They will be analyzed in details in the following
paragraphs.

 Political environment

The political environment is made up of regulations and interventions by the central


and local government agencies that influence all organizations activities. Marketing
decisions are strongly affected by government interventions and regulations. These
regulations placed by the government are there to protect companies from unfair
competition, protect customers from purchasing harmful products and price
regulation, and the society’s interest.

 Economic environment

This involves the circular flow of income in an area where a firm operates. It shows
how the marketing department has to allocate resources in that area in period of
recession, recovery, boom and even inflationary periods. In the case of SOREPCO
S.A Cameroon being an area of commercialization and many businesses, the
economy is mostly booming and sometimes in recession during some periods. By so
doing, the marketing department has to emphasize on these booming periods in order
to prospect more customers.

 Socio-cultural environment

These constitute the society’s wide influence and changes that can affect the
marketing environment. Social influences include all the factors and trends related to

WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE 13


SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.

group of people, their number, characteristics, behavior and group projection while
cultural influences refer to factors and trends related to how people live and behave.
Social and cultural influences conditions how individuals translate their needs into
specific products and services which they want. SOREPCO NDOGPASSI-Douala
Cameroon being in an urban area locality comes across a very dense population and
people struggling to survive due to high cost living.

 Technological environment

This is the most challenging environment in an organization. With technological


advances increasing with a high speed, it increases the intensity of competition
amongst firms. The firm with the highest level of technological advancement will
probably have the most customers. If a firm fails to follow the trend of change in
technology, it will obviously fail in business as most of her goods might not meet the
right customers on time.

 Environmental/ Ecological environment

These are factors that prompt a company to respect the environment in which it
operates. SOREPCO NDOGPASSI ensures that its neighbourhood is always kept
health; it provides air conditioner to its staff and also ensures that its activities do not
disturb its neighbourhood.

 Legal environment

The legal environment consists of laws relating to local and international legislations
that companies need to abide to. For this reason, organizations need to clearly
understand nature of their own marketing environment and abide to it because every
organization is bound by control. SOREPCO S.A is regulated by the OHADA law
and respects all legislations because during my stay of internship, they have never
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had any problem with the local government and I have never heard of any issue of
them with the local government. In concluding the aforementioned internal and
external environments, the internal environment comprises components that can be
controlled by a company and therefore is not really a big challenge to the company.
But in contrary to the external environment which is the micro external and the macro
external, it is a very big challenge to SOREPCO NDOGPASSI because they are
environments she can never predict. She instead needs to adapt her strategies in
accordance to these external environments.

CHAPTER TWO: INTERNSHIP ACTIVITIES


In this chapter, we will explain the evolution of our internship activities at SOREPCO
NDOGPASSI Douala, Cameroon and the presentation of the various departments and
its heads. The chapter will be sub divided into two sections, with the first section
being the presentation of the services that received the intern during the period of
internship and the second being the evolution of the internship activities at
SOREPCO NDOGPASSI Douala, Cameroon.

Section One: Presentation at SOREPCO NDOGPASSI

DOUALA-CAMEROON

2.1.1: RECEPTION
We started internship on the 6 of JUNE 2021 in SOREPCO NDOGPASSI-Douala
branch. We were received by the human resource office at the head quarter where we
were given a warm welcome and our internship contract to sign by the department
head in charge. After then they gave us some of the formalities and objectives of
SOREPCO S.A, the formalities were all about the dressing code for work and
working hours which must be respected by all. Every worker must be present at
8A.M and close at 5:30 P.M from Monday to Friday and 7:3A.M to 2P.M on
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Saturdays. Then we later joined the personnel at the branch of NDOGPASSI. The
activities of SOREPCO NDOGPASSI are focused on sales of building materials,
household equipments, furnitures and divers items. The objectives were to meet
customers demand, make high sales and make high profit.

2.1.2: PRESENTATION OF HOST SERVICES


After the reception, we were introduced to every working staff of the branch who will
be involved with us during the period of our internship. Our job description was
mainly focus on the knowledge of products sold at SOREPCO
NDOGPASSI. We were also requested by the human resource to attain to
training offered by the training center and also get informed on the global
vision and values of the Company as well as it historical evolution.

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SECTION TWO: CHRONOGRAM OF THE ACTIVITIES

AND JUSTIFICATION OF TOPIC.

2.2.1. CHRONOGRAM OF THE ACTIVITIES

weeks ACTIVITIES CARRIED OUT


1st Week Introduction and general presentation of the company
2nd Week Selling procedure and document link to sales
3rd Week Iron park and it activities
4th Week Branch warehousing
5th Week Central warehouse and stock management procedures
6th Week Initiation into tiles
7th Week some mathematical operations involve in tiles selling
8th Week Introduction to different lines of product

2.2.2. FIRST WEEK


On the first day of the week, we were given our uniforms and intern badges by one
personnel of the human resource who asked us to sign in here lock book to attest that
we collected the company’s property. After this, we went visiting the different
agencies in Douala among which were; MBOPPI, AKWA, DOUCHE,BEACH,
SALLE DES FETES, SODIKO, GRAND HANGA, EMERAUDE
BONAMOUSSADI, NDOGPASSI and YASSA. The rest of the days were spent at
the training center found in the head office. There at the training center, we received
training of the following aspect of the company: history of SOREPCO, her vision, her
objectives, her engagement, her offers, the brands represented by SOREPCO, the
distributor’s brand, employees mutual association (APES), organization chart of
SOREPCO GROUP.

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Outcomes
We were introduced to the professional world were we learned much about client
reception and customer care.

Difficulties
The main difficulties encountered during this week were; limited transport facilities
since we had to travel a very long distance from our residence to the head office and
slow familiarization with our new environment as a result of the complexity of the
operations of the company.

2.2.3. SECOND WEEK

The second week was characterized by an impregnation to sales and a knowledge of


documents related to sales.

Activities
- Initiation to BRASMA (Bonjour-Regarder-Attention-Sourire-Merci-Au-revoir)
code
- The establishment of an internal purchase order

- Reading and interpretation of a transfer slip or delivery slip

- Comparison of a receipt with a delivery slip or a transfer slip

- Issuance of purchase orders for sold stock

Outcomes

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During the second week we could interact with customers and address them
professionally from the skill we had acquired from our supervisor. This went about
improving on our customer oriented skill and our desires to serve and get the
customers satisfy.

Difficulties
The difficulties we had were at the level of understanding the different procedures
that favored the movement of goods from the producer, manufacturing plans or the
central ware houses to finally reach the branches of the company. Another difficulty
was recorded at the billing stage as speed and accuracy were not often associated at
the right time to serve the queue waiting.

2.2.4. THIRD WEEK

The first three days of the third week were spent at the iron park of SOREPCO
NDOGPASSI mean while the remaining three days were spent at the iron park of
SOREPCO PK5.

Activities
- Knowledge of the iron park products
- Distinction of similar products
- How to serve an invoice

Outcomes
Thank to this week, we were able to distinguish products that look alike. For example
iron rod FE 400 from iron rod FE 500. We also saw some substitute to certain
products. One of the most peculiar thing to keep in mind when working at the iron
park area is vigilance as it requires a lot of concentration since it deals with counting
of articles to be delivered to customers.

Difficulties

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The main difficulty we faced during this week was that of distinguishing items that
look alike as what made the difference was their thickness in millimeter.

2.2.5. WEEKS FOUR AND FIVE


During the fourth and the fifth week, our work consisted in visiting the central
warehouses of Mboppi and the NDOGPASSI branch warehouse

Activities
- Procedures related to the reception of stock
- Documents use in stock transaction
- Sheaving of goods

Outcomes
During these weeks we were able to understand the different procedures related to the
reception of goods from the containers to various warehouses.
We also learn about the sheaving of goods so as to ease counting.

Difficulties
The complex nature of the different procedures made it difficult to understand how it
operates.

2.2.6. WEEKS SIX AND SEVEN


Our six and seven week was dedicated to the studying of tiles, it characteristics and
the different calculations involved in tiles selling.

Activities
-Understanding the different materials used in making tiles
-How to present tiles on shelves.
-Understanding the different types of tiles
-Calculations related to tiles selling

Outcomes
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From this training, we were able to advise customers on how to make a choice of tiles
and how to convert the customer’s surface area into cartons of tiles.

Difficulties
At the beginning of this training, it was not easy for us to distinguish tiles from their
types. Most often, we mixed tiles of different types. Another difficulty encountered
was that of explaining to customers that the face price on tiles is that of a m² and a
conversion needs to be made in other to obtain a carton price.

2.2.7. WEEK EIGHT


This week was the last of our internship. It was rich with some brief learning in
different lines of products.

Activities
-How to advise customers on tiles
-waterproofing solution
-plumbing solution
-How to operate a gas cooker
-Test of apparatus

Outcomes
We were able to acquire several skills during this week and will help us both in our
professional life as well as in our personal life.
Thanks to this training, it is possible to give professional advices to customers in
other to resolve problems like humidity in houses.

Difficulties
Looking at the brief nature of this training, there is a high risk to forget easily since
the training was aimed at giving a general knowledge on the rest of products sold in
the NDOGPASSI branch.

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2.2.8. Justification of Topic


During our internship at SOREPCO NDOGPASSI-DOUALA, CAMEROON, we
played the role of sales agents and through my observation I noticed some problems
like;
 Intensive Competition
 Dalliance- in the delivery period that gave advantage to competitors
 High prices of some articles in the market
 Poor communication on some slow moving products
 Inadequate knowledge of SOREPCO’s online services
All these problems led to either the creation or an increase in the stock of slow
moving products and thus holding the company’s capital tied in these goods. It is
with this regard that the internship was aimed at finding “SALES STRATEGIES
FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –NDOGPASSI
DOUALA, CAMEROON” in other to help the company regain her capital and thus
achieve her goal to satisfy customers.

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PART TWO: CONCEPTUAL FRAMEWORK

The conceptual framework includes the best SALES strategies to boost slow
moving items. Here, we present the two variables of our topic which are Sales
strategies and its impact on slow moving items. We go further to explain how we
collected data, analyzed it and interpreted the results from the analyzed data. A
situational analysis of SOREPCO NDOGPASSI-DOUALA is done in this part and
the problems identified are stated alongside some recommendations. The purpose of
this part is to present the last two chapters of our work and put this report in the
specific context of SOREPCO NDOGPASSI

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CHAPTER THREE: SALES STRATEGIES FOR SLOW

MOVING ITEMS
In this chapter, we will define the concepts of sales and explain in details some
sales strategies that can be used to boost slow moving items. We will also discuss the
primary and secondary methods of data collection we used in our work. The
presentation of the collected data will also be done in order to make analyzing the
data more realistic and simple. This data analysis will be interpreted with the goal to
establish clear results which could be easily interpreted.

SECTION ONE: PRESENTATION OF CONCEPTS


3.1.1. SALES STRATEGIES
Companies need to develop their sales force strategically so that they can call on the
right prospects or customers at the right time in the right way. This is because; a
modern sales representative acts as “Account manager” who arrange contacts
between various people in the buying and selling process. Thus, the selling job calls
for team work requiring the support from stake holders such as technical staff who
provide technical information to the customers before during and after purchases.
Note: A company can use one or more of the following sales approaches (strategies)
to contact customers.
 Sales Representative to buyer
This is when a sales person is assigned to talk to a prospect or customer in
person or over the phone or online makes a sales presentation to a buying
group.

 Sales Team to Buyer Group

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In many situations, firms engage in team selling, the practice of using an entire
team of professionals in selling to and servicing major customers. Team selling
is used when specialized knowledge is needed to satisfy the different interests
of individuals in a customer’s buying center. For example, a team might
consist of a sales person and financial executive, each whom would deal with a
counterpart in the customer’s firm.
With this strategy, the company decides to assign a sales team to work closely
with the members of the customer buying group. This is because the customer
group may need much education and demonstration before they can buy. It is
usually used when dealing with complex product, technical or new products
and when lunching an existing product in a new market.

 Conference Selling
With this approach, a sales person will decide to use resource people from the
company to meet one or more prospects to discuss problems and opportunities
relating to the product or service. This strategy helps to build potential
customers ego and confidence.

 Seminar selling
This is when the company’s selling team decides to organize an educational
seminar for both customers and technical staff about the technical and
commercial aspect of the product so as to facilitate the usage of the product.
This strategy is particularly used when the product is technically and
commercially complex and newly introduces into the market. It helps to reduce
and remove potential customers’ dissonance for unfamiliar brands, products or
services.

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3.1.1.1: TOOLS NEEDED IN SALES APPROACHES (STRATEGIES)


This refers to the tools needed by a sales person or sales team in the selling process.
These tools are mostly marketing tools since marketing defines the strategies for a
good selling process. They include; the STP and the marketing mix (4Ps of marketing)
as tool.
 Segmentation
Organizations that sell to customers and industrial markets have recognized the
fact that their products or services cannot satisfy all buyers in those markets or
all buyers in the same way. This is so because markets are often made up of
buyers who have different needs and expectations from the products they buy.
The buyers are numerous, widely scattered and varied in buying practices.
However some people show similarities in what they choose because of their
age, lifestyle, location, resources, buying attitudes. So segmentation will
consist of dividing the total market of a firm’s product into distinct group or
segments of buyers with different needs, characteristics or behaviour who
might require separate products or marketing mix. An effective segmentation,
can be done on the following base; Demographic, Geographic, psychographic,
Behaviour, Beneficial and End use.
 Targeting
Targeting is the process of evaluating each market segment’s attractiveness and
selecting one or more market segments to deal with and then developing a
product and offer which is aimed specifically at those segments. Once the
target market segments have been identified and key attitudes of those
customers towards the product category is determined, the company should
then focus on segments in which she has a competitive advantage over its
competitors that can provide the greatest customer value. Target marketing is
therefore the link between segment selection and product positioning.
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 Positioning
It is the act of representing a general impression about a firm’s products to
customers in relation to competing organization or products e.g. high quality
After a company has decided which market segments to enter, she must
next decide what position she wants to occupy in those segments. Two main
positions occupied by companies in a market segment are; Product position
and Market position.
Product position
A product’s position is the place a product occupies in a consumer’s
mind relative to competitors products. Thus, it is the way a product is defined
by consumers on important attributes (e.g. performance, safety, etc.).
Note: A firm’s competitive advantage is its product’s position because a firm’s
competitive advantage is the strength, while a products’ position is a prospect’s
perception of a product. Since product’s position is the set of perceptions,
impressions and feelings that consumers hold for a product compared with
competing products they position products with or without the help of
marketers.
Market positioning
This is the act of arranging for a product to occupy a clear and
distinctive and desirable place in the market relative to competing products.
Thus, marketers do not want their product’s position to change in the market
instead they plan a market position that will give them their greatest advantage
in selected target markets and design marketing mix to create these planned
positions.
Note: Companies should take care when increasing the number of clients for
their brand not to create disbelief and a loss of clear positioning. Thus, they

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must avoid major positioning errors such as under positioning, over positioning,
confused positioning or doubtful positioning.

3.1.1.2: SALES PROMOTION (BELOW THE LINE)


Advertising offers a “reason” to buy, while sales promotion offers an
“incentive” to buy. Its importance has increased in recent years because of the ever-
increasing cost of media and also because of its effectiveness in creating additional
sales in a very direct manner.
Note: sales promotion is referred to as “below the line” advertising. This line was
drawn to distinguish between advertising activities for which they were paid a
commission on media purchase and other activities (sales promotion, exhibitions,
trade fairs, sponsorship, etc.) for which their involvement was charged directly to the
client as no commission is paid.
Definition of Sales promotion
This consist of all those marketing techniques, which are used in short term
bases to make goods and services more attractive to consumers by providing some
additional benefits either in kind or in cash.
Sales promotion planning
As with any business task, it is important to come up with a full sales
promotion plan prepared before hand. Below is atypical planning sequence of stages
of sales promotion:
 Analyze the problem/task
 Define the objective
 Set the budget
 Examine the type of promotion likely to be used
 Define support activities (e.g. advert, incentives).
 How to measure success of promotion campaign
 Plan timetable
 Present details to sales force, retailers, etc.
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 Implement the promotion


 Evaluate the result
 Testing (e.g. a limited store)
Purpose or importance of sale promotion
For the past years the amount spent on sales promotion has been
increased which indicates its importance as tool of marketing communication. More
so, its expenditures can easily be collected and analyzed.
Thus, the following reasons can account for the growing of sales
promotion.
 Help the managers to support their brands in face of competition.
 Since today competitions are less differentiated, it is used to attract customers
because they have become more “deal-prone”.
 Because of rising costs of media
 Retailers are demanding more deals from manufacturers
 Development in information technology
Advantages of Sale Promotion
 Response is easily measured
 Quick achievement of objective
 Flexible in application
 Can be relatively cheap
 Direct support from sales force
Disadvantages of Sale Promotion
 Price reduction or discounting can cheapen brand image.
 Advantages are only in the short term.
 Retailers might not want to cooperate.
 Difficulty in communicating brand message.
Setting Sales promotion objectives

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Sales promotion objectives are derived from broader objectives (information,


persuade and remind), which are derived from more basic marketing objectives
developed for the product.
Sales promotion objectives vary widely based on whether she used consumer
promotion or trade promotion.
(a) Objective of a consumer promotion (Pull)
 Increase short term extra sales volume
 Entice consumers to try a new product (product trail)
 Pull consumer away from competitor’s product
 Encourages consumers to continue consuming a mature product
 Holds and rewards loyal customers
 Encourages repeated purchase
 Help build a long term market share
(b) Objectives to trade promotion (Push)
 Used to motivate retailer to carry new items.
 More inventory.
 Inducing them to advertise the product and give more shelf space.
 Persuading them to buy ahead.
 Stimulate sales force to sign up new accounts.
 Point on sales impact.
3.1.1.3 SELECTING SALES PROMOTION TOOLS
Many sales promotion tools exist, thus, the promotion planner should take into
account the type of market, sales promotion objectives, competition and each tool’s
cost effectiveness.
In consumer markets, the main sales promotion tools are:
 Samples: These are offer of a trail amount of product offered free or the
company charges small amount of offset it cost. The sample might be delivered
door to door, by mail, handed out in a store, attached to a product, etc.

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 Coupons: These are certificates that give buyers a saving when they purchases
specified products. Coupons can be mailed, included in other products or
placed in adverts in newspapers and offering coupons on their websites or
through online coupons services.
 Cash Refund Offers (rebates): This promo tools offers to refund part of the
purchase price of a product to consumers who send a “proof of purchase”
 Price Packs: This involves reduced prices that are marketed by the producer
directly on the label or package. It offers consumers saving off the regular
price of the product. Price packs can be a single package sold at a reduced
price such as two products for the price of one or two related products banded
together (e.g. complementary products). This is the most effective tool in in
stimulating short-term sales.
 Premiums: These are goods offered either free or at a low cost as an incentive
to buy a product. A premium may come inside (in pack) or outside (on-pack)
the package or through the mail to consumers who sent in a proof of purchase
such as a box top. The package itself acts as a premium if it is reusable.
 Prices: This involves contests, sweepstakes and games where prices are offers
of the chance to win, cash, trips or merchandise as a result of purchasing a
product or service.
 Point of purchase promotion: This consist of advertising or display materials
at the retail location such as window display, counter displays, floor and wall
racks to hold good, poster, etc. used to advertise and promote impulse buying.
3.1.1.4 SALES PROMOTION STRATEGIES
Any manufacturer who markets through normal channel of distribution
must secure the cooperation of retailers (push) and on the hand (attract/pull)
consumers. To achieve these goals, there exist two main sales promotion strategies to
pursue.
 Push strategy techniques (geared towards middlemen)
 Pull strategy techniques (geared towards final consumers).
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(a) Push Promotion Strategies


There are all those promotional activities geared towards pushing
more products through the distribution chain, by offering distributors
inducements to stock or display products in a certain way such as:
 Profit Incentive: This includes discounts, bonuses and discount for bulk
buying of for stocking product range for the first time.
 Credit Incentive: Such as credit sales or return facilities extended credit
period etc.
 Staff Promotion: This consist of staff training, competition conferences,
seminars or participation in events.
 Joint Promotion: For example, free-in-store display materials
exhibition etc.
 Trade Deals: This offers dealers short term discounts on the costs of the
product or other money inducement to sell the product.
 Slotting Allowance: These are fees often paid by manufacturers to
retailers for obtaining shelf or floor space for their product in their store.
 Advertising Allowance: This is either a percentage of gross purchase or
a flat fee paid to middlemen for advertising a manufacturer’s product.
 Push money: That is for each product sold, the sales person may receive
a percentage push depending on the product.
(b) Pull Strategy
The pull strategy involves attracting consumers towards the product
by offering them a variety of incentives to stimulate consumers demand,
thereby “pulling” products through the distribution chain.
 Coupons
 Cash refund offers
 Price packs
 Samples
 Premiums
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 Point of purchase promotion


All these points have already discussed above.

Summary of sales Promotion Tools


Aimed at final consumer Aimed at middlemen Aimed at sales forces
samples Trade deals Contest
Coupons Slotting allowance Convention
Cash refund Push money Seminars
Price packs Credit facilities Meetings
Premium Displays
Point on purchase Merchandising aids Sales aids
materials
Contest Meetings Bonuses
Calendars Promotion allowance Training materials
Streamers Dealer premium
Banners Bonuses

3.1.2: SLOW MOVING ITEMS (INVENTORIES)


In a perfect world, demand for our company’s products would always be high, supply
chains would always be efficient, and each and every one of our items would fly off
the shelf faster than we could think to restock them. However, this unfortunately is
not a perfect world, and no matter the size, industry, or history of the company, every
single business deals with slow-moving stock in one way or another. Slow-moving
inventory do not only cost us and our storefront partner’s time and space, but it also

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comes with the hassle of extra carrying costs. This means the longer that inventory
collects dust, the more our business loses out on new opportunities, resources, and
valuable capital.

3.1.2.1 DEFINITION

Slow moving inventory are inventoried items (both raw materials and finished goods)
that have minimal customer demand based on the quantity on hand for a period of
typically six months or greater.

The inactivity of these products contributes to wasted capital and resources by


occupying warehouse space and incurring costs in the form of the following:

 Loans or credit lines to finance purchased inventory


 Per unit purchase Price
 Manufacturing costs
 Freight costs
 Carrying costs (i.e., warehouse rent, labor and insurance)
 Opportunity cost (loss associated with not being able to bring in new, faster
moving inventory)

Identifying slow moving products empowers businesses to invest more wisely and
intervene with necessary business process adjustments before the products phase out
into excess inventory (products that have been on hand for more than 12 months) and
obsolete inventory (products that have had no usage in the last 12 months), which
tend to be more difficult to revive or move.

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Consider product performance in relation to the general idea of the Pareto principle
(also known as the 80/20 rule). The gist of the rule is that most things in life are
unevenly distributed; therefore the majority (80%) of something is caused by a
smaller percentage (20%) of something. A business example is 80% of sales are from
20% of products. The 20% are top performers contributing more value to the
company meaning the other 80% could be good, decent or fall into categories of slow
moving, excess and obsolete.
3.1.2.2. CHARACTERITICS OF SLOW MOVIN ITEMS.

Here are five ways to identify slow moving inventory:

1. Inventory Turnover

Inventory Turnover Ratio = Cost of Goods Sold / (Beginning Inventory + Ending


Inventory)/2

A high turnover rate means your business is selling products as quickly as they come
in and a low turnover rate means that product is much slower to move off the shelves.
If you are experiencing low turnover rate you could be ordering too much of a
product, resulting in slow moving inventory and operational inefficiencies.

2. Average Days to Sell Inventory

Average days to sell will vary from business to business and product to product. A
general rule of thumb is that an item is considered slow-moving if it has had less than
six months of demand.

For a more accurate calculation, we can implement forecasting tools. This is


particularly critical for those items that operate at different life cycles than our mean
inventory turnover. If items cannot be accurately forecasted and there is variance in
shelf life, we are experiencing slow moving inventory.

WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE 35


SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.

3. Holding Costs

This is the cost a business incurs from storing inventory. This could include the cost
of storage, depreciation, staffing, maintenance, insurance, security, and the overall
cost of capital for the business.

Holding costs may seem trivial at first glance but can accrue into massive losses. A
slow-mover does not just hurt sales but creates costly operational inefficiencies.

4. Determine Gross Profit

Once all the costs have been attributed to the item, it determines it current gross profit.
This is simply the price of product minus the cost to make, hold, and sell that good.
When identifying a slow-mover, it’s important to see how the costs affect the selling
price and what that does to customer demand.

5. Forecasting

Using short-term and long-term historical data will help us discover patterns in our
inventory. Whether it is seasonal, promotional, or overall trends, we can compare
inventory turnover rates against customer demand upswings and plateaus. What may
seem like minute changes at the time may need management attention in a longer-
term context. Knowing our item’s gross profit, its inventory costs, and seasonality
fluxes will help us identify which inventory is moving slowly and empower us to
make informed inventory decisions.

WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE 36


SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.

3.1.3: SALES STRATEGIES FOR SLOW MOVING ITEMS

Regarding the sales strategies mention above, SOREPCO S.A can rely on sales
Representative to buyer strategy and Sales Team to Buyer Group strategy aided by
STP (segmentation, targeting, positioning) as a tool. She can as well rely on Sales
Promotion tools (samples, coupons, cash refund offers, price packs, premium, prices,
point of purchase promotion) and promotion strategies such as push promotion
strategies (profit Incentive, credit Incentive, Staff promotion, Joint promotion, Trade
Deals, Advertising Allowance, Push Money) and pull Strategy.

WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE 37


SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.

Section Two: Means and Results

3.2.1. Sources of Data

Primary Sources of Data

Primary data consists of collecting the original data (information) in the field for the
first time. It is known as field research. The sources could be through the observation
method, experimentation method and the survey method. The main sources of
primary data we used during the internship were observation and personal interviews.
The objective was to collect data on the following aspects Sales strategies and how
these aspects are combined to promote the sales of slow moving items at SOREPCO
NDOGPASSI branch. The Sales techniques practices and tools we observed include:

 PROSPECTION
 DISCOUNTED PRICING POLICY
 SALES PROMOTION
 PERSONAL SELLING
 COMMUNICATION

Secondary Sources of Data

Secondary data consists of information that already exists somewhere which was
collected for another purpose. Secondary data sources could be internal (sales record,
stock record) or external (newspapers, online databases and magazines).

Our main source of secondary data was collected from the inventory manager as well
as the sales forces in the field in order to access the effect sales strategies on slow
moving inventory.

In this case, we also focused on the following variables:

 Sales records,
WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE 38
SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.

 The rate of turnover,


 The average days to sell.

3.2.2. Presentation of Data

Table 3.1: Sales Strategies and Rating on the Slow Moving Items SOREPCO
Ndogpassi branch.

SALES STRATEGIES RATING ON SLOW MOVING ITEMS (%)

HIGHLY IMPORTANT NOT SO IMPORTANT

SALES RECORDS 80 20

RATE OF TURNOVER 95 05

AVERAGE DAYS SELL 65 35

SOURCE: Generated by intern from personal interviews carried out during


internship.

WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE 39


SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.

3.2.3. Analysis of Data

Figure 3.2: Graphical Representation of Data

Source: Generated from Sales Strategies and Rating on slow moving Items. Table
done by intern.

Interpretation of Diagram

During our time of internship at SOREPCO Ndogpassi, we conducted personal


interviews with seven members of staff of the organization’s branch. We asked
questions on sales strategies and the impact these have on slow moving items. The
interview responses as presented on the diagram above reflect the thoughts and
opinions of some staff of SOREPCO Ndogpassi, Douala. Some sales strategies were

WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE 40


SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.

considered to be more relevant regarding the impact they had on slow moving items
than others, as seen on the diagram. The sales strategies implemented by the
employees considered to be highly important, would contribute more to improving on
the sales of slow moving items of the branch and those they considered to be not so
important, would contribute less to improving on the sales of slow moving items of
the branch.

3.2.4. Presentation of Results

According to the data we collected and as per our data presentation and analysis
above, SOREPCO Ndogpassi needs to consider the following sales strategies: Sales
Representative to buyer strategy, Sales Team to Buyer Group strategy, Conference
Selling, Seminar selling. To better implement these strategies, she should also
consider the following tools in sales approach; Segmentation, Targeting and
Positioning as well as promotion tools such as coupons, cash Refund offers, price
packs, premium and point of purchase promotion.

WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE 41


SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.

CHAPTER FOUR: CRITICAL ANALYSIS


In this chapter, we will do a situational analysis of SOREPCO Ndogpassi Douala
Cameroon, where we will discuss both the internal analysis of strengths and
weakness and the external analysis of opportunities and threats. This situational
analysis would permit us to further identify some problems and make some
recommendations in the perspective of using best sales strategies to improve on the
sales of slow moving items of SOREPCO Ndogpassi Douala-Cameroon.

Section One: Situational Analysis of SOREPCO Ndogpassi Douala-Cameroon.


Here, we discuss the strengths and weaknesses of SOREPCO Ndogpassi Douala-
Cameroon and also look at the opportunities and threats facing them.

4.1.1. Strengths of SOREPCO Ndogpassi Douala-Cameroon.


Strengths are things that an organization does particularly well, or in a way that
distinguishes them from their competitors.
The strengths of SOREPCO Ndogpassi include:
 QUALITY PERSONNEL: SOREPCO Ndogpassi has well trained and
qualified personnel who are ready to give their maximum effort when required.
 TRAINING AND RECYCLING OF PERSONNEL: SOREPCO Ndogpassi
organizes trainings for its personnel on new products and services and recycles
its personnel on existing product. Through these training, the commercial
strategies are sometimes revised.
 Customer’s loyalty: SOREPCO Ndogpassi has established loyalty programs
to reward its faithful customers. Some of these programs include; loyalty card
and customer’s account with discounted prices.
 Financial Capability: SOREPCO has a solid financial standing as a result of
its integration with the African, Asian and European network.

WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE 42


SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.

4.1.2. Weaknesses of SOREPCO Ndogpassi.

Weaknesses are negative factors that detract from a company’s strengths. These
are things that the company might need to improve;

INVENTARY SHORTAGES: There are constant shortages of leader product that


do not favour but contributes to the creation of slow moving product especially when
they are complimentary. Example, the absence of ply-wood will slow down the sales
of Xylomax (ply-wood treatment), the absence of iron tubes and sheets will slow
down the sales of Anti-rust as well as welding rods.

EXCESSIVE PRESSURE ON THE SALES PERSONNELS : Continuous


increase in forecasted sales revenue per sales person mounts great pressure on the
sales personnel’s especially when it does not take into consideration the changes in
the market and the socio-economic problems faced by country. Sometimes this
forecasted sales revenue fails to consider the shortages of leader products.

MULTIPLICITY OF SECONDARY TASKS ATTACHED TO THE SALES


FUNCTIONS: Most often, the time needed for proper sales operations is reduced by
other secondary functions assigned to the sales person such as: merchandising,
products labeling, order management, among others.

4.1.4. Opportunities of SREPCO Ndogpassi

NEW MARKETS: The areas of ARRI, YATIKA, JAPOUMA, YASSA and


NYALLA constitute a new market dominated by huge building projects which could
be a great opportunity to SOREPCO Ndogpassi since these markets are dominated by
just few giants companies and lots of retailers.

QUALITY PRODUCT REPUTATION: SOREPCO S.A as a whole is reputed for


selling quality products. This perception creates a good image for her and her
branches.
WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE 43
SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.

QUALITY CUSTOMER SERVICES: The clients of the company and a


significantly large section of the general public have a positive perception of the
service quality provided by the company as a result of knowledgeable trained sales
team who has a good mastery of the products sold by SOREPCO.

INTER CONNECTIONS OF BRANCHES: The inter connection of branches


makes it possible for customers to make their purchases in any branch of their choice
and remove where ever the want provided they specified the branch of removal. This
is a good opportunity on which the company or her branches can rely on during their
promotion campaigns.

4.1.4. Threats to SOREPCO Ndogpassi

Threats are external factors that a company has no control over. The company may
want to consider putting in place contingency plans for dealing them if they occur.

Economic conditions: SOREPCO Ndogpassi could be vulnerable to the difficult


economic situations that prevail in the country and also to consumer credit
availability and delinquency, interest rates and discretionary spending.

Price changes: Any significant change in the cost of the goods supply will affect the
selling prices of these goods and will as well reduce the sales and profits in the case
of an increase in prices.

Inventory: A reduction in the availability of inventory could adversely affect the


company.

Capital: Changes in the availability or cost of capital and working capital


financing is a threat to SOREPCO Ndogpassi.

WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE 44


SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.

Section Two: Problems Identified at SOREPCO Ndogpassi and


Recommendations

4.2.1. Problems Identified

During our time at SOREPCO Ndogpassi, Douala-Cameroon, we noticed some


problems specific to the sales of slow moving items. Some of the most significant of
these problems include the following:

 Intensive Competition: SOREPCO NDOGPASSI faced great competition from


SONECOM X which is a firm to PROMETAL (SOREPCO NDOGPASSI
supplier of iron and steel product, COGENI, FOKOU and QUIFEROU. It
should be noted that all these company are located close to another.
 Dalliance in the delivery period: Once the order for supply is placed the
different central warehouse it takes some days to be delivered to the agency
which placed her order. This gives an advantage to competitors who receive
SOREPCO Ndogpassi unsatisfied customers in their shops.
 High prices : It has been observed that SOREPCO Ndogpassi practices high
prices for certain products
 Poor merchandising: The merchandising of certain products in the display
areas were not attractive and were sometimes not at the reach of customers
 Inadequate knowledge of SOREPCO’s online services
 A smaller surface for product display: Most often, goods may leave the central
warehouse, reach the agency but might not be display or well display because
of an inadequate space to display these goods. The reason is that the back store
is larger than the product display area. For such goods, they may end up
recording a slow turn over and hence becoming slow moving products.
 Inaccurate sales forecasts: Inventory forecasting also known as demand
planning is the practice of using past data, trends and known upcoming
events to predict needed inventory levels for a future period. Accurate
WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE 45
SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.

forecasting ensures businesses have enough products to fulfill customer orders


while not tying up cash in unnecessary inventory. In the case of SOREPCO
Ndogpassi, she is confronted with a considerable slow moving inventory due to
an inaccurate sales forecast by the central sales department of the main
company who has as option to order to her branches the coupling of the sales
of these slow moving items with some fast moving items regardless of whether
they are complimentary or not.

4.2.2. Recommendations to Problems Identified

These recommendations are made with the perspective to provide suggestions on how
to manage factors that contribute to the slow sales of goods so as to improve the sales
of slow moving Items of SOREPCO Ndogpassi, Douala-Cameroon.

We suggest the following recommendations to the problems identified above:

 SOREPCO NDOGPASSI has to carry out competitive intelligence on regular


bases in order to study and anticipate on competitors plan especially when she
is face with slow moving inventory.
 A slow moving inventory might be due to high prices of the slow moving items.
A proper competitive intelligence will tell us whether the good is obsolete or
the prices are not the best compared to what is practiced in the market.
 SOREPCO NDOGPASSI has to require from the logistic department an
additional vehicle for the supply of products to her agency and for the delivery
of customers on time.
 In order to well display all here products on shelves and limite slow moving
items that result from inadequate display space, SOREPCO Ndogpassi has to
reduce her back store so increase her display surface. She also need to adjust
her merchandising method a display not only slow moving items but all her
items in the following manner; Eye level, Floor level, Hand level and window

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SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.

display to make the good appear to customers in the right way so that the can
see and also touch.
 SOREPCO NDOGPASSI has to adapt her promotion and communication mix
strategy to the new trend of the market by integrating modern ICT tools and
digital platforms in order to give a better visibility to all her products.
 When faced by a considerable rate of slow moving items, the sales department
has to order a reasonable coupling taking into consideration the nature of these
slow moving items. In the case of SOREPCO Ndogpassi, she can instruct
imposed selling/buying through following ways:
 Impose selling of fast moving products along with their compliments
 Coupling fast moving products with slow moving products by creating a
pack whose price could be the sum of the semi-wholesale prices of both
goods.

GENERAL CONCLUSION
WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE 47
SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.

Considering the Pareto Principle, or the 80/20 rule, which states that for many
phenomena 80% of the result comes from 20% of the effort and comparing to the rate
of turnover of goods at SOREPCO NDOGPASSI, we can draw two conclusions
which are;

 Only 20% of goods provide 80% of the forecasted sales revenue per
month.
 Only 20% of customers contribute to 80% of the forecasted sales of the
branch every month.
From these two conclusions, we can say that the remaining 80% of goods which are
not that efficient might be consider dormant or slow moving.
During our internship at SOREPCO NDOGPASSI, DOUALA-CAMEROON, we
tried to carry out a study on sales strategies for slow moving items. We began by first
understanding while some items were termed slow moving, what impact the sales
strategy practiced had on them. In carrying out our studies (internship), we came
across some difficulties (Intensive Competition, Dalliance in the delivery period,
High prices, Poor merchandising, Inadequate knowledge of SOREPCO’s online
services, a smaller surface for product display, Inaccurate sales forecasts) and brought
some propositions which could improve on the sales of slow moving items like;
carrying out a regular competitive intelligence to anticipate on her competitors plans
and adjust her prices to be the best competing in the market, revising her
merchandising (eye level, floor level , hand level and window display), adapting her
promotion and communication mix to modern ICT tools and to digital plat forms,
forming complimentary packs between fast moving and slow moving products.
However, as sales strategies for slow moving items are concerned, they are relative to
changes especially when they stop producing the awaited results.

BIBLIOGRAPHY
Authors Books:

WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE 48


SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.

 BOBGA DOHFON, (2013), ESSENTIALS OF MARKETING PLANNING


1st EDITION

 BOBGA DOHFON, (2015), ESSENTIALS OF SELLING AND SALES


FORCE MANAGEMENT 2ND EDITION

 BOBGA DOHFON, (2016), MARKETING MADE SAMPLE, THEORY


AND PRACTICE 4TH EDITION.

 NESTOR TAKERE TICHAHNJI, (2014), THE MARKETING FOOTPRINT,


PRINCIPLES OF MARKETING, 2ND EDITION

 Kotler. P. and Armstrong, (2001) Principle of Marketing.

INTERNET SOURCES :
www.google.com
www.wikipedia.org

APPENDIX
ORGANIGRAM OF SOREPCO NDOGPASSI
WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE 49
SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.

BRANCH
MANAGER

SALES SALES CASHIER OPERA- INVEN- DRIVER SECURI


PERSON PERSON TIONS TORY TY
1 2 MANA- CONTOL- AGENT
GER LER

SALES
ASSISTANCES

WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE 50

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