Sales management

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Uploaded by Mouktar Singh Thakur
From IIPM, Chandigarh.

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Sales management

  1. 1. FACTSSELLING CAPACITY:Class A city: 100 Kg per OutletClass B city: 75 Kg per OutletClass C city: 50 Kg per OutletCOSTS:  Servicing: 40/- per day for servicing of one retail or 40 X 5 = 200/- per outlet locally **  Salaries: Area Manager – 2000/month (24000 per annum) Sales Supervisor – 1200/month (14400 per annum) Salesman – 300/month (3600 per annum)  Advertising: Rs 20 Lakhs  Distribution: Rs 1/ Kg 2 Area Managers for Bihar 24000 X 2 = 48000 per annum 1 Sales supervisor is need for every 10 salesman (3600 X 10) + (14400 X 1) = 50400 per annumREVENUE:7.5/- per soap of 75 grams
  2. 2. FINDINGSClass A City: 200,000 Kg100 Kg per Outlets 200,000/100 = 2000 OutletsClass B City: 80,000 Kg75 Kg per Outlets 80,000/75 = 1067 OutletsClass C City: 260,000 Kg50 Kg per Outlets 260,000/50 = 5200 Outlets  Total Production: 5,40,000 Kg for 8267 Outlets  Total Possible Revenue: 5,40,000 X 100 = 5,40,00,000 (1 kg=7.5 X 1000/75=100/-)  Expenditure = 20,00,000 (Advertising cost) + 540,000 (Distribution Cost) + 2 X 24,000 (2 Area Mgr. yearly salary) + 200 X 8267 (Servicing Cost for Outlets) = 42,41,400  Marketing Expenditure: For 10% of turnover i.e., 54,00,000  54,00,000 – 42,41,400 = 11,58,600 For 15% of turnover i.e., 81,00,000  81,00,000 – 42,41,400 = 38,58,600  Total no. 0f Squads the company can afford is 11,58,600/50400 = 23 Approx. to 38,58,600/50400 = 76 Approx. * 1 Squad = 10 Salesmen and 1 Supervisor.
  3. 3. Solutions of the questions:To minimize the cost we take least possible no. of Squad 23 (i.e., 230Salesmen and 23 Supervisors) and divide it by total no. of Outlets8267 / 230 = 36 Outlets (Approx)So, every Salesmen is ready to manage 36 Outlets than Salesforce is ready for8,280 Outlets.Territories:Class A city = 2000/36 = 5 SquadClass B city = 1067/36 = 3 SquadClass C city = 5200/36 = 14 Squad* Total = 23 Squad for 8267Cost to Management:  230 X 3600 + 23 X 14400 = 11,59,200* Total Management Expenditure = 42,41,400+ 11,59,200 = 54,00,200 whichis 10.0003 % of Total Revenue 5,40,00,000.Sales Target per Salesman:Class A city 200,000 Kg / 50 (Salesman) = 4000 kgClass B city 80,000 Kg / 30 (Salesman) = 267 kgClass C city 260,000 Kg / 140 (Salesman) = 1587 kg
  4. 4. SUBMITTED BY :MOUKTAR ABDI DJAMA SA 1

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