Sales Strategies For Slow Moving Items
Sales Strategies For Slow Moving Items
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
SIGNATURE SIGNATURE
………………… ………………….
DEDICATION
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
And to all my teachers and Classmates who contributed in one way or another
to make this report happen
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>>.
RESUME
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.
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.
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.
IDENTIFICATION SLIP
TABLE OF CONTENT
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?
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.
Structure in Parts
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.
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.
VISION
SOREPCO S.A is keen to conquer the sub regional market, to feel the need to satisfy
both employees, suppliers and make profit.
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
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
SERVICES
CONSTRUCTION SAVINGS
CONSTRUCTION CREDIT
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.
Competitive factor
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 refers to a set of uncontrollable variables that influences the business activities
of SOREPCO PLC. They consist of micro uncontrollable and macro uncontrollable
factors.
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
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
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
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
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
WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE 14
SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.
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.
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
WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE 15
SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.
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.
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.
Activities
- Initiation to BRASMA (Bonjour-Regarder-Attention-Sourire-Merci-Au-revoir)
code
- The establishment of an internal purchase order
Outcomes
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.
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
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.
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.
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
WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE 20
SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.
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.
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.
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
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.
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.
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
must avoid major positioning errors such as under positioning, over positioning,
confused positioning or doubtful positioning.
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).
WRITTEN AND PRESENTED BY: KAMGHA BAUGNIE EMMANUEL BLAISE 31
SALES STRATEGIES FOR SLOW MOVING ITEMS: CASE OF SOREPCO S.A –
NDOGPASSI DOUALA-CAMEROON.
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.
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.
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.
1. Inventory Turnover
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.
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.
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.
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.
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.
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 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.
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.
Table 3.1: Sales Strategies and Rating on the Slow Moving Items SOREPCO
Ndogpassi branch.
SALES RECORDS 80 20
RATE OF TURNOVER 95 05
Source: Generated from Sales Strategies and Rating on slow moving Items. Table
done by intern.
Interpretation of Diagram
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.
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.
Weaknesses are negative factors that detract from a company’s strengths. These
are things that the company might need to improve;
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.
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.
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.
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:
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
ASSISTANCES