Planning, Organizing And Controlling Sales Activities - Intended For Epic Garments Manufacturing Company Ltd 4b1056

Planning, Organizing & Controlling Sales Activities (Intended For Epic Garments Manufacturing Company Ltd)

Prepared By: Raju Kumar Saha – Team Leader (ID-2012121012) Sheik Shami Ullah Chowdhury (ID-2012121015) Najeb Islam (ID-2011421006) HND Business Intake 1, 2012

Prepared For: Mr. Irfan Jahangir Faculty, Marketing, School of Business BAC Dhaka, Bangladesh

Epic Garments Manufacturing Company Ltd (EGMCL) EGMCL is capable of conducting design, R&D and manufacture of high end dress shirts, casual shirts and ladies' tops. They are located in EPZ (Export Processing Zone). Their factory is manned by 5000 operators, who are capable of producing 1.2 million shirts each year. They employ top senior merchandising team who has the capability of providing shirts based on special requirements. Their shirts are wrinkle free with Nano-Care protection, and can also be dyed as per client requests.

Task 1 - Lo 20.3.1 - Sales strategies & Corporate objectives Sales strategy consists of a plan that positions a company’s brand or product to gain a competitive advantage. Successful strategies help the sales force focus on target market customers and communicate with them in relevant, meaningful ways. Sales representatives need to know how their products or services can solve customer problems. A successful sales strategy conveys this so that the sales force spends time targeting the correct customers at the right time. EGMCL’ sales objectives is part of its company's marketing plan, in which common goals are identified by the marketing team, including profit margins, revenue targets, advertising, distribution partners and targeted demographics. These plans are outlined and discussed in sales meetings to insure a shared understanding between of the marketing and sales teams. In EGMCL objectives of sales management entails numerous objectives which are executed by sales managers. There are mainly three such objectives: 1. Sales Volume 2. Contribution to profits 3. Continuous Growth

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The sales executives in this case are the ones who help implement these objectives. However it is the top management who has to outline the strategies to achieve these objectives of sales management. The top management provides products which are socially responsible and are marketed in a manner which meets customer’s expectations and does not break it. Thus sales management involves a strong interaction between Sales, marketing and top management. Corporate Objectives are the outcomes and measureable goals set by a group of people in common. Usually, this applies to a business, which will conduct its operations in order to achieve set objectives set out by the people who come together to provide those goods and services. Objectives are more specific than goals. For example: EGMCL’s objective is to combine speed, efficiency, technology, design and innovation. They have chosen such objective because they are in an industry where on-time delivery and quality are a given.

Establishing Sales Objectives: To successfully bring the service to market EGMCL followed some essential steps to develop a relationship of sales strategies and corporate objectives. 

Competition Study:

EGMCL studied their competitors' marketing materials (adverts, websites etc) and identified where their service is similar and where it is not. Then they were able to assess its customers who are likely to buy from them or their competitors. This information also revealed the ideal customer for their service that they can then target with their marketing. 

Defining Marketing Strategy And Tactics:

Then EGMCL choose the right sales and marketing channels for their service, e.g. shop, website, personal selling. They also made sure that as many people as possible know about their service, including potential customers, the media and reviewers.

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

Knowing the Lifecycle:

After introducing the service their marketing campaign was regularly updated as the service matured. 

Creating Sales Plan:

In a business, ultimate goal is to make money. To help EGMCL do this a sales plan was required. The sales plan described and quantified over a period of time how sales of their products or services will be made and to whom. The sales plan included information about their business and customers. It also helped EGMCL map out ways to increase sales with current clients as well as expand their business to attract new clients.

Task 2 - Lo 20.3.2 - Recruitment & Selection Procedures As EGMCL grew, in the development of their business they found the need to build a team of people whose primary role is selling. They realised building an enthusiastic and successful team of people who sell will be vital to growth and it meant recruiting specialist salespeople. In order to meet this need EGMCL follows the following steps. 

Interview:

Great salespeople are tricky to interview. When they’re good at selling, they are able to present themselves in the best possible light and turn an interview situation to their advantage. To top it all off, great salespeople are always in high demand, so the job market is both competitive and fluid, which means that staff turnover is high. The trainer at EGMCL stresses that a great salesperson should have ion, enthusiasm and attitude. EGMCL looks for people who are driven by money and results. At interview they look for those who have found ways of earning money at a young age, or been a winner in some other activity. EGMCL also looks for people that are warm, friendly, articulate, and have a sense of humour.

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At the second stage, EGMCL trainer asks the candidate to ‘sell’ his company’s products to him. “They have to do a lot of background work before they can do this kind of sales pitch,” he explains. “A natural salesperson will breeze through it and enjoy the experience. Others will struggle, or not prepare properly.” 

Providing a Clear Outline of the Sales Role:

Many organisations over-sell their positions, so end up not matching a new employee’s expectations. EGMCL decides a salary and sticks to it; so that individuals will be motivated by the opportunity and not just how much they’ll get paid. 

Using Own Staff:

Where possible, EGMCL trainers include existing salespeople in the recruitment. When they take part, they are more likely to take the time to develop the newcomer and to be more patient with any subsequent teaching problems. 

Discussing Future:

EGMCL talks about the candidate’s long-term life goals to ensure that they are in line with their business vision. They also assess levels of aptitude and attitude.

Importance of Recruitment         

Recruitment is the process which links the employers with the employees. Identifies and prepares potential job applicants who will be appropriate candidates. Creates a talent pool of candidates to enable the selection of best candidates for the organization. Attracts and encourages more and more candidates to apply in the organization. Increases the pool of job candidates at minimum cost. Determines present and future requirements of the organization in conjunction with its personnel planning and job analysis activities. Helps increase the success rate of selection process by decreasing number of visibly under qualified or overqualified job applicants. Helps reduce the probability that job applicants once recruited and selected will leave the organization only after a short period of time. Increases organization and individual effectiveness of various recruiting techniques and sources for all types of job applicants.

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Task 3 - Lo 20.3.3 - Motivation, Remuneration & Training 

Motivation:

De-motivated employees can mean the following implications for a business. - Low productivity - Poor production or service quality - Strikes / industrial disputes / breakdowns in employee communication and relationships - Complaints about pay and working conditions If motivation is driven by the existence of unsatisfied needs, then it is worthwhile for a manager to understand which needs are the more important for individual employees. In this regard, Abraham Maslow developed a model in which basic, low-level needs such as physiological requirements and safety must be satisfied before higher-level needs such as self-fulfilment are pursued. In this hierarchical model, when a need is mostly satisfied it no longer motivates and the next higher need takes its place. Physiological Needs – Are those required to sustain life, such as:   

Air Water Sleep

According to Maslow's theory, if such needs are not satisfied then one's motivation will arise from the quest to satisfy them. Safety – Once physiological needs are met, one's attention turns to safety and security in order to be free from the threat of physical and emotional harm. Such needs might be fulfilled by:   

Living in a safe area Job security Financial reserves

Social Needs – Are those related to interaction with other people and may include:   

Need for friends Need for belonging Need to give and receive love

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Esteem Needs – May be classified as internal or external. Internal esteem needs are those related to self-esteem such as self respect and achievement. External esteem needs are those such as social status and recognition. Some esteem needs are:     

Self-respect Achievement Attention Recognition Reputation

Maslow later refined his model to include a level between esteem needs and selfactualization: the need for knowledge and aesthetics. Self-Actualization – Is the peak of Maslow's hierarchy of needs. It is the quest of reaching one's full potential as a person. Unlike lower level needs, this need is never fully satisfied; as one grows psychologically there are always new opportunities to continue to grow. Self-actualized people tend to have needs such as:    

Truth Justice Wisdom Meaning

If Maslow's theory holds, there are some important implications for management. There are opportunities to motivate employees through management style, job design, company events, and compensation packages, some examples of which follow:     

Physiological needs: Providing lunch breaks, rest breaks, and wages that are sufficient to purchase the essentials of life. Safety Needs: Providing a safe working environment, retirement benefits, and job security. Social Needs: Creating a sense of community via team-based projects and social events. Esteem Needs: Recognizing achievements to make employees feel appreciated and valued. Offer job titles that convey the importance of the position. Self-Actualization: Providing employees a challenge and the opportunity to reach their full career potential.

However, Herzberg argues that only the higher levels of the Maslow Hierarchy (e.g. selfactualization, esteem needs) act as a motivator. The remaining needs can only cause dissatisfaction if not addressed properly. From his research, Herzberg suggested a two-step approach to understanding employee motivation and satisfaction. Page | 7

Hygiene factors – Are based on the need to for a business to avoid unpleasantness at work. If these factors are considered inadequate by employees, then they can cause dissatisfaction with work. Hygiene factors include: - Company policy and istration - Wages, salaries and other financial remuneration - Quality of supervision - Quality of inter-personal relations - Working conditions Motivator factors – Are based on an individual's need for personal growth. When they exist, motivator factors actively create job satisfaction. If they are effective, then they can motivate an individual to achieve above-average performance and effort. Motivator factors include: - Status - Opportunity for advancement - Gaining recognition - Responsibility - Sense of personal achievement & personal growth in a job There is some similarity between Herzberg's and Maslow's models. They both suggest that needs have to be satisfied for the employee to be motivated. 

Motivation in EGMCL:

Currently EGMCL management is providing the following as a mean to motivate their employee. -

Free lunch Medical insurance Pension Scheme Yearly Bonus

Through following these tools of motivation EGMCL is only keeping their employees from becoming dissatisfied only. However, I would suggest that they should start following Herzberg's theory and focus on employee’s self-actualization and esteem needs more to create highly motivated workforce.

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In order to do that they can implement the following techniques: - Job enlargement It is a method of job design; when any organization wishes to adopt proper job design it can pick job enlargement. It involves combining various activities at the same level in the organization and adding them to the existing job. It involves the addition of tasks at the same level of skill and responsibility. It is done to keep workers from getting bored. - Job rotation It is about settling employees at the right place where they can deliver the maximum results. In today’s highly competitive world, this can be proved as the best strategy to find the immediate replacement of a high-worth employee from within the organization. It requires finding the most suitable people and then shifting them to take on the responsibilities of a higher level tough task. Job rotation helps HR managers determine who can be replaced by whom and create a suitable and beneficial fit. - Job enrichment It involves combining various existing and new tasks into one large module of work. The work is then handed over to an employee, which means there is an increase in responsibilities and scope. This increase in responsibility is often vertical. The idea is to group various tasks together such that natural work units are created. 

Remuneration:

The most widely recognized method of attracting and retaining good employees is through remuneration packages. This is because a good remuneration package can have a positive effect on a person's standard of living. Remuneration refers to money or substitutes for money. This may include wages, salaries, commissions and bonuses, incentive plans and allowances. The total value of all these items is called a remuneration package.

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At EGMCL remuneration packages relate to factors included in the job description such as roles and responsibilities. Positions within EGMCL come with different levels of stress, difficulty and workload, so EGMCL's remuneration reflects these differences. Higher level job requirements yields better remuneration. While a remuneration package is often seen as a way of luring and enticing staff during the recruitment process, it is also used as a valuable tool for retaining good people. When good performance is recognized, EGMCL prepares a meeting with their employees individually to discuss changes and additions to their remuneration as a reward for good performance. It is also used as a method of retaining staff who have indicated that they might change jobs within the near future. By discussing this option with them EGMCL ascertains as to whether or not a change to their remuneration package would make them more likely to stay. In addition EGMCL re that many employees would like to keep their individual remuneration packages confidential as it can help prevent awkward situations, jealousy and workplace disputes. However EGMCL tries to remain fair and offer similar packages to people who do the same jobs and not base appraisals on discriminatory or personal factors.



Training:

Recruiting the right kind of people is critical, but, once we’ve got them, training is just as important. According to the trainer of EGMCL (Mr. Biddut) “The first year in a new job is an unsettled time. Managers and salespeople can suffer from buyer’s remorse – when you buy something on a whim and then regret it when you get it home”. According to him, Managers often ask: “Have I done the right thing? Should I cut my losses before I lose any more money?” Meanwhile, salespeople can wonder: “Have I jumped from the frying pan into the fire? But can I face another round of interviews?” This is a period of great uncertainty. To guard against it, Mr. Biddut recommends weekly sales meetings and spending lots of time together. This upfront investment of time and money will pay off, he insists. By following this, EGMCL is creating a great salesperson by the end of that first year. Page | 10

But how do EGMCL keep them? Mr. Biddut’s answer is clear. “Success breeds success,” he says. “Salespeople will want to be part of a successful team, and that means a company with a clear vision and a dynamic leader. Other than that, pay them properly, treat them fairly (for example, don’t take key customers away once they’ve brought them in) and recognise their achievements.”

Task 4 - Lo 20.3.4 - Organizing Sales Activity & Controlling Sales Output There are three kind of sales forecasting – 1. Short-term forecasts. 2. Medium-term forecasts. 3. Long-term forecasts And a sales budget is a valuable tool that gives a direction to a company with regard to its targeted sales. It helps to improve the profitability of a company. EGMCL makes a financial plan with regard to the amount of goods and services that it plans to sell in a year and the price at which the goods and services are to be sold. This plan is its sales budget. Features  The sales budget is the first component of the master operating budget. This is because sales affect all other parts of the master budget. It includes the total sales valued in quantity. It consists of three parts; break even, target and projected sales. The budget also includes sales by product, location, customer density and seasonal sales patterns. It provides a plan for both cash and credit sales. The basis of a sales budget is the sale price per unit of goods to be sold multiplied by the quantity of goods to be sold. A sales budget is planned around the competition, the material available, cost of distribution, government controls and the political climate.

Significance 

A sales budget controls the finances allocated for achieving sales targets of a company. It is the standpoint for comparing the actual sales performance and the budgetary sales performance of a company. The budget guides the company with regard to how much money should be allocated to selling distribution and sometimes for advertising and marketing. A sales budget that sets realistic targets will help the company make a profit.

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Effects 

A good sales budget serves as a guide to company with regard to its sales target. It should be flexible and resilient to the volatile changes in the market. The budget should not put too many restraints on the sales functions of the company. A sales budget is a financial plan for the sales of goods and services of a company. It is the basis on which all the financial decisions of a company with regard to sales are taken. The budget also controls the general sales prospects of a company. Online and off line marketing, marketing in the media and other advertising expenditures are planned around a sales budget.

Benefits 

A sales budget helps a company achieve its sales targets. It helps prevent sales losses and provides a basis for sales evaluation. A sales budget helps to integrate all departments in a company because achieving a sales target is the secret of making profits. It helps each department to assess their performance and correct any mistakes in function. It helps a company distribute goods and services in a cost effective way. It also helps the company to keep its marketing expenditure within affordable limits.

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Example of future Sales Budget of EGMCL (Predicted): Epic Garments Manufacturing Company LTD. Sales Budget For the Year Ended December 31, 2012 Quarter 1 2 3 4 Year Budgeted sales in each crate 20,000 60,000 80,000 40,000 200,000 Selling price per crate 40.00 40.00 40.00 40.00 40.00 ------------ ------------ ------------ ------------ -----------Total sales 400,000 1200,000 1600,00 800,000 4,000,000 ====== ====== ====== ====== ====== Percentage of sales collected in the period of the sales Percentage of sales collected in the period after the sales

70% 30% 70%

30%

Schedule of Expected Cash Collections 1 s receivable, beginning balance 180,000 180,000 2 First quarter sales 280,000 120,000 400,000 3 Second quarter sales 840,000 360,000 1200,000 4 Third quarter sales 1120,000 480,000 1600,000 5 Fourth quarter sales 560,000 560,000 ----------- ----------- ----------- ----------- ----------6 Total cash collections 460,000 860,000 1480,000 1040,000 3540,000 ====== ====== ====== ====== ====== 1 Cash collections from last year’s fourth-quarter sales. 2 400,000 × 70%; 400,000 × 30% 3 1200,000 × 70%; 1200,000 × 30% 4 1600,000 × 70%; 1600,000 × 30% 5 800,000 × 70% Uncollected fourth quarter sales appear as s receivable on the company's end of 6 year balance sheet. 

Explanation of sales budget for Epic Garments Manufacturing Company LTD:

This example contains the sales budget for EGMCL for the year 2012, by quarters. Please notice from the example that the company plans to sell 200,000 crates of items during the year, with sales peaking in the third quarter. After preparing sales budget, a schedule of expected cash collections is also prepared such as the one that appear above. Page | 13

Cash collections consist of sales made to customers in prior periods plus collections on sales made in the current budget period. In the example, 70% of sales will be collected in the quarter in which the sales are made and the remaining 30% will be collected in the following quarter. For example, 70% (or $280,000) of the first quarter sales are collected during the first quarter and 30% (or $120,000) is collected during the second quarter.

Task 5 - Lo 20.3.5 - Use of Databases in Sales Management Definition of Sales Database Software: The information you have on your customers, including but not limited to their information, how often they purchase from you, what they purchase and how they pay their bills. Sales and marketing industry is a quick acting market that requires a sales person to be able to have what they need when they need it. Any delay could cost a sale and hurt the bottom line of any company as the competition is right around the corner waiting to close on a deal if you fail to. Sales database software allows companies to store off information regarding their target audience both current and future. Sales database software is one that would allow a company to store and retrieve information for current customers including email, phone as well as mailing and billing address. Benefits of Sales Database Software: Sales people are busy people! They need to meet with executives and presidents of different companies all day and all over the world. In order to pull off one of these meetings, they need to make sure the meeting is properly scheduled through the right s, that they have the right address and schedule of the appointment. With these meetings going on all day and all week, how does a sales person stay organized? Sales database software! How Avidian Makes EGMCL’ Sales Easy: Now that you know what sales database software is all about and what the major benefits are we need to know where we can get our own sales database software! Avidian software provides a sales database software solution which is very easy to use, can be used from anywhere in the world and plugs into many applications that you probably are already using today like outlook! The importance of database in direct sales and marketing: Creating, maintaining and using a database of customers are the utmost importance in direct sales and marketing. Every company grows of course by acquiring new customers by going after them and winning them over. But at the same time, it's rather easier and of course more economical too to make further sale to existing customers. That's why a database holds much relevance. Creating a database incurs a lot of careful and analytic study and compilation work as well. It's not just getting the names and addresses of regular customers and putting them down in order. Lots of more useful information can be gathered about the customers, like:

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    

Their ordering pattern including the frequency in which they order for things and the way they like to put their orders. Their likes and interests, which includes the kind of products they prefer and the kind of benefits they look forward to in a product. Their life-pattern, their social and economic status and hobbies. All this gets reflected in their way of choosing products and companies. Their peer groups. It should be ed that peer groups have a considerable influence on buyers and their preferences and hence this has to be monitored. Their s and friends circle, which can be used to get to more number of potential customers.

These and many more information so gathered could help a direct sale and marketing company make the most of its marketing campaigns. It's not just making a database that matters. The database should be carefully maintained and regularly updated, as and when you get new information. Making full and effective use of a database thus created also matters in direct sales and marketing.

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References: 1. 2. 3. 4. 5. 6. 7.

Mr. Biddut. Employee Trainer. Personal Communication. 15-11-2012 http://www.epichk.com/ http://epicgroup.manufacturer.globalsources.com/ http://www.avidian.com/ http://www.netmba.com/mgmt/ob/motivation/maslow/ http://tutor2u.net/business/people/motivation_theory_herzberg.asp http://ing4management.com/sales_budget.htm#Explanation%20of%20sales %20budget%20for%20Hampton%20Freeze%20Inc.

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