Master Sun Sales Methodology

Master Sun Difference Connect vision with execution. We specialize in execution We focus on achieving Progress & Outcomes and not on writing reports Accountable, deliver measurable financial results End-to-end execution solutions provider along with partners Put our money where our mouth is For Long Term Projects open to low fees & high profit share Focus on the building blocks of the organization Processes, Systems, Practices & Procedures Create a joint venture with the client’s management team Steering Committee, Risk Management, Task Force Work both top-down, bottom-up Senior management to field staff. CEO to ‘Peon’ Cohesive strategy for integrating people Competencies, Culture, Attitudes to Workplace

Connect vision with execution. We specialize in execution

We focus on achieving Progress & Outcomes and not on writing reports

Accountable, deliver measurable financial results

End-to-end execution solutions provider along with partners

Put our money where our mouth is

For Long Term Projects open to low fees & high profit share

Focus on the building blocks of the organization

Processes, Systems, Practices & Procedures

Create a joint venture with the client’s management team

Steering Committee, Risk Management, Task Force

Work both top-down, bottom-up

Senior management to field staff. CEO to ‘Peon’

Cohesive strategy for integrating people

Competencies, Culture, Attitudes to Workplace

Service Inventory Sales Planning & Sales Strategy Sales Strategy Implementation or Outsourced Sales Sales Optimization: Moving from Individual to Team Selling Sales Performance & Productivity Improvement Sales Audit , Sales Feedback Sales Training Up-selling & Cross-selling Programme SPIN Selling Programme

Sales Planning & Sales Strategy

Sales Strategy Implementation or Outsourced Sales

Sales Optimization: Moving from Individual to Team Selling

Sales Performance & Productivity Improvement

Sales Audit , Sales Feedback

Sales Training

Up-selling & Cross-selling Programme

SPIN Selling Programme

Likely Benefits of the Project Indicators Improvement Range Sales Volume 5-25% Turnover 5-30% Productivity 20-50% Margin 5-20% Brand Visibility 5-25% Time to Market 25-35%

Sales & Distribution Strategy Execution Process Sustainable Strategy Strategic Direction Executable Strategy Fine-tuned Strategy Output Institutionalization of the process Identification & definition of areas of improvement Development of solution and testing Implementation of solution across all markets Activity Challenges the assumption that Strategy comes first, Execution Later Stage Health Check Plan & Pilot Rollout Institutionalization

Sales & Distribution Methodology Who are the Customers ? What is the Strategy ?

Strategy Development Key Questions Customer Segments Analysis Key Segments & definition Sales & Profits from various segments Seasonality and Grouping from segments Behaviour of various segments

Key Questions

Customer Segments Analysis

Key Segments & definition

Sales & Profits from various segments

Seasonality and Grouping from segments

Behaviour of various segments

Segment Analysis Example Case of a 5 Star Hotel Room Mix Net AHR

Room Mix

Net AHR

Segment Analysis Vacation Home Buyers: Internationally Distances between residence & Vacation Home Usually less than 100 miles Size of home : 1000-1500 sqf Average value per sq.ft Source: Economic Realtors Research

Sales Methodology How do we move from individual selling’ to team selling ?

Sales Process Optimization Usually Salesman Act as Autonomous Agents Current Reality Sales Strategy : Maximizing Conversion rate Autonomous agents typically use various levers and have the flexibility to convert opportunities Autonomous agents qualify opportunities and attack only those with high conversion possibilities Not much management control can be exercised on autonomous agents Salesman as Autonomous Agents Maximize Conversion Maximize Sales

Current Reality

Sales Strategy : Maximizing Conversion rate

Autonomous agents typically use various levers and have the flexibility to convert opportunities

Autonomous agents qualify opportunities and attack only those with high conversion possibilities

Not much management control can be exercised on autonomous agents

Sales Process Optimization We need to transform Agents to Team Members Salesman as Autonomous Agents Maximize Conversion Maximize Sales Salesman as Team Members Maximize Management Control

Sales Process Optimization Transformation Strategy Transformation Strategy : Maximizing opportunity flow while maintaining conversion within optimal range Key Strategy : Standardization of sales process & application of division of labour to freeing up a salesman time Identification of task groups Opportunity Generation, Appointments, Sales Support Specialists for various tasks Focusing salesman on 2 appointments a day, 5 days a week

Transformation Strategy : Maximizing opportunity flow while maintaining conversion within optimal range

Key Strategy : Standardization of sales process & application of division of labour to freeing up a salesman time

Identification of task groups

Opportunity Generation, Appointments, Sales Support

Specialists for various tasks

Focusing salesman on 2 appointments a day, 5 days a week

Sales Process Optimization Standardized Functions Opportunity Generation Cold Caller Couple in-house, rest out-sourced Focus on generating appointments per day Promotion Coordinator Direct marketing design & implementation Good presentation & sales materials Regular communication with prospects & customers Participation & visibility in relevant industry events Gifting At a later stage, organizing events of our own Business Development Salesmen & Sales Manager No. of appointments per day Sales Support Sales Coordinator Forward booking of appointments In-time Invoicing & Outstanding follow-up Dummy samples Printing & dispatch of vouchers , gift certificates Liaison with service Coordination with technical specialist for solution design and estimation Technical Specialist Solution design Estimation Negotiation support Product Training New Product Development

Opportunity Generation

Cold Caller

Couple in-house, rest out-sourced

Focus on generating appointments per day

Promotion Coordinator

Direct marketing design & implementation

Good presentation & sales materials

Regular communication with prospects & customers

Participation & visibility in relevant industry events

Gifting

At a later stage, organizing events of our own

Business Development

Salesmen & Sales Manager

No. of appointments per day

Sales Support

Sales Coordinator

Forward booking of appointments

In-time Invoicing & Outstanding follow-up

Dummy samples

Printing & dispatch of vouchers , gift certificates

Liaison with service

Coordination with technical specialist for solution design and estimation

Technical Specialist

Solution design

Estimation

Negotiation support

Product Training

New Product Development

Sales Methodology What is the strategy for various accounts?

Account Strategy Framework Buying Situation Buying Center Buying Process Buying Needs Account Targeting Strategy Relationship Strategy Sales Channel Strategy Selling Strategy Account Salesperson Sales Strategy Organizational Buyer Behavior

Account Strategy : Key Questions Account Targeting Strategy Classify accounts so you can develop strategic approaches for selling Basis for classification: Account size, Account Potential, Desirability of the account Relationship Strategy What type of relationship do you want to establish with each of the above categories Transaction relationship? Solutions relationship? Partnering relationship? Collaborative relationship? The closer the relationship, the higher the costs! For example …What type of relationship do you want to have with “C” level accounts (small size, slow growth)? How about “A” level accounts (important, large customers)? Selling Strategy What approach to establish the relationships that you decided on above? What type of sales presentation would you use to build a transactional relationship? What type of sales presentation would you use to build a collaborative relationship?

Account Targeting Strategy

Classify accounts so you can develop strategic approaches for selling

Basis for classification: Account size, Account Potential, Desirability of the account

Relationship Strategy

What type of relationship do you want to establish with each of the above categories

Transaction relationship? Solutions relationship? Partnering relationship? Collaborative relationship?

The closer the relationship, the higher the costs!

For example …What type of relationship do you want to have with “C” level accounts (small size, slow growth)? How about “A” level accounts (important, large customers)?

Selling Strategy

What approach to establish the relationships that you decided on above?

What type of sales presentation would you use to build a transactional relationship?

What type of sales presentation would you use to build a collaborative relationship?

Selling Methodology How do we focus on needs of customers?

Spin Selling –Needs Creation Selling SPIN - an easy way to remember the basic model and process for 'needs-creation selling' S - Situation Discuss, understand or explain the situation with the prospect P - Problem Next identify the problem that exists or could arise. I - Implication Explain, discuss or understand the implication of the problem for the prospect's business (i.e.., what organizational improvement can potentially be achieved) N - Need This effectively creates a need or opportunity to rectify the problem (with the sales person's product/service).

Sales Methodology How to sell completely using up-sell & cross-sell

Complete Selling Worldwide Survey of Consumers by The Forum Corp. Customers desire cross selling & up-selling 88 percent of customers value service reps who suggest alternative products or services that better meet their needs 73 percent are interested in learning about new products or services the company is promoting 61 percent tend to ask service reps about these products and alternatives Customers not only engage in sales discussions with service reps, but they also buy 42 percent of customers said they purchased additional products or services “sometimes” or “frequently.”

Worldwide Survey of Consumers by The Forum Corp.

Customers desire cross selling & up-selling

88 percent of customers value service reps who suggest alternative products or services that better meet their needs

73 percent are interested in learning about new products or services the company is promoting

61 percent tend to ask service reps about these products and alternatives

Customers not only engage in sales discussions with service reps, but they also buy

42 percent of customers said they purchased additional products or services “sometimes” or “frequently.”

Up-selling & Cross-Selling : Complete Selling Up selling is "complete" selling If you are selling a matching tie with the three piece suit, uncovering a need by asking the question leads to complete selling From the customer's standpoint, completing a satisfactory purchase Saving his an additional trip to buy the tie

Up selling is "complete" selling

If you are selling a matching tie with the three piece suit, uncovering a need by asking the question leads to complete selling

From the customer's standpoint, completing a satisfactory purchase

Saving his an additional trip to buy the tie

Why Complete Selling Why complete selling is so profitable Customer buys a bike with EMI of Rs. 395 for 48 months. Very little resistance to adding Rs. 10 to the monthly payments for anti-theft locking system. For you, however, that additional sale is significant, Adds up to a Rs. 480 sale, with a huge profit margin. It only takes 30 seconds to make that extra 480 sale, then you're making more money for the company than with any other activity you do. If your salary is Rs. 30 per hour then doing the math, the 60 seconds you take to up-sell costs the company about 50 paise. If it only costs the company 50 paise to make Rs. 480, that's a huge return on investment. The fact that it's attached to a 25,000 sale is completely irrelevant. So, complete selling is one of the highest and best uses of your time.

Why complete selling is so profitable

Customer buys a bike with EMI of Rs. 395 for 48 months.

Very little resistance to adding Rs. 10 to the monthly payments for anti-theft locking system.

For you, however, that additional sale is significant,

Adds up to a Rs. 480 sale, with a huge profit margin.

It only takes 30 seconds to make that extra 480 sale, then you're making more money for the company than with any other activity you do.

If your salary is Rs. 30 per hour then doing the math, the 60 seconds you take to up-sell costs the company about 50 paise.

If it only costs the company 50 paise to make Rs. 480, that's a huge return on investment.

The fact that it's attached to a 25,000 sale is completely irrelevant.

So, complete selling is one of the highest and best uses of your time.

Complete Selling :Points to Note Be prepared with positive aspects when selling expensive alternatives. Customers will ask why they should choose these Why should I buy Polaroid glasses instead of plain Recognizing sales opportunities is a matter of observing ‘body language’ and ‘reading’ customers Signals to look for : uncertain body language, looking around, scanning the counter , hesitation in ordering, or studying menus for a long time Excellent service would be to go and sell to these customers Remain in Control One of the key phrases that will end a large, multiple-item sale with a whimper rather than a bang is…‘Would you like anything else?' This is not proactive and does not put you in control." Instead, says salespeople should take the lead. Some phrases : Would you like [product X] with your [product Y]. (Example: A Pepsi to go with a Samosa.)

Be prepared with positive aspects when selling expensive alternatives. Customers will ask why they should choose these

Why should I buy Polaroid glasses instead of plain

Recognizing sales opportunities is a matter of observing ‘body language’ and ‘reading’ customers

Signals to look for : uncertain body language, looking around, scanning the counter , hesitation in ordering, or studying menus for a long time

Excellent service would be to go and sell to these customers

Remain in Control

One of the key phrases that will end a large, multiple-item sale with a whimper rather than a bang is…‘Would you like anything else?' This is not proactive and does not put you in control."

Instead, says salespeople should take the lead.

Some phrases :

Would you like [product X] with your [product Y]. (Example: A Pepsi to go with a Samosa.)

Complete Selling :Points to Note Nodding Dog Technique The next time a customer asks for a glass of Pepsi, instead of giving them a choice - small medium or large glass, look them in the eye and say large one? Do this while nodding your head, most times the customer will simply nod back in agreement. Give it a try, it works! Hands on demonstration. One of the most effective up-selling techniques is getting the customer to use the product in your location A hairdresser, for example, might put hair gel in the customer's hand and show them how to apply it themselves. By showing the client how to get the salon look at home, they create a value-added up-sell. Group related products Good idea to group similar add-ons and offer them as an up-sell at a package price Haircut + massage + cleanup at a package price

Nodding Dog Technique

The next time a customer asks for a glass of Pepsi, instead of giving them a choice - small medium or large glass, look them in the eye and say large one?

Do this while nodding your head, most times the customer will simply nod back in agreement. Give it a try, it works!

Hands on demonstration. One of the most effective up-selling techniques is getting the customer to use the product in your location

A hairdresser, for example, might put hair gel in the customer's hand and show them how to apply it themselves. By showing the client how to get the salon look at home, they create a value-added up-sell.

Group related products

Good idea to group similar add-ons and offer them as an up-sell at a package price

Haircut + massage + cleanup at a package price

Make Complete Selling a Habit You’ll need to put a plan in place to ensure that every sales opportunity has a route for complete selling Amazon.com makes additional product recommendations based on your purchase and browsing behavior

You’ll need to put a plan in place to ensure that every sales opportunity has a route for complete selling

Amazon.com makes additional product recommendations based on your purchase and browsing behavior

Sales Methodology What kind of Management Systems to Control the Sales Process

Sales Management Control Basic System Flow What are we doing about it ?

Sales Management Control : Performance Management with Balanced Scorecard Brand / product development, sales, service, operations, logistics.. Activities needed to create the required customer value proposition and differentiation and the desired financial outcomes Organization infrastructure, skills, capabilities, knowledge of employees, working climate.. The ability to execute internal business processes in new differentiated ways Who are the target customers that will generate the revenue growth? What are the objectives and how do we measure success with them? What are the financial objectives for growth and productivity? What are the major sources of growth?

Typical Sales Management Control System-Example BC members Sales/ Mkt Head Sales Force Forecast Plan Control Report Mission, Vision, Corporate Values, Group Policy Annual Business Plan Annual Operating Plan Five Year Business Plan Monthly sales Plan Quarterly sales Plan Weekly sales Plan Cumulative Weekly Score Card Monthly Score Card Quarterly Sales Report Annual sales Report Business head Daily Activity Control Sheet Daily Score Card Forecast Last year performance Marketing Info Sys Financial Budget Resource Planning Census Contact Strategy Corporate policy Seg.Head Weekly Contact Plan Check List Review of annual Sales plan Review Action Log Review Action Log Review Action Log

Balanced Scorecard Example Chief of Sales & Marketing- Weekly Scorecard

Selling Methodology How do we improve salesman productivity

Productivity Improvement Day in the Life Of Salesman Study A full day in the life of a salesman studied & time spent on Active selling Passive Selling Administration Delivery Order Taking Traveling Available/Free Comparison of Reality Perception Ideal Diagnosis of sales man’s productivity & alignment to business needs

A full day in the life of a salesman studied & time spent on

Active selling

Passive Selling

Administration

Delivery Order Taking

Traveling

Available/Free

Comparison of

Reality

Perception

Ideal

Diagnosis of sales man’s productivity & alignment to business needs

Productivity Improvement Salesman Checklist Compliance Pre-meeting, Meeting & Post-meeting issues analyzed on Preparation, Building relationship, Identifying needs & objections, closing & administration Diagnosis of sales man’s selling effectiveness & alignment to business needs

Pre-meeting, Meeting & Post-meeting issues analyzed on

Preparation, Building relationship, Identifying needs & objections, closing & administration

Diagnosis of sales man’s selling effectiveness & alignment to business needs

Productivity Improvement Sales Meeting Effectiveness Analyzes the effectiveness of salesman during the course of the meeting Analyzes soft sales skills Diagnosis of sales man’s soft skills & re-training priorities assessed

Analyzes the effectiveness of salesman during the course of the meeting

Analyzes soft sales skills

Diagnosis of sales man’s soft skills & re-training priorities assessed

Productivity Improvement Audit through Mystery Calling Legend : y = yes, full point; p= partially, half point; n=no, zero points Delhi Mumbai Chennai Pune Unit Ahmedabad Good introduction and makes you feel welcome n n n n n n Investigation of Caller Needs (Purpose of Visit, Duration, Fimilarity with Area etc.) n n n n n n Differences between Rooms Explained y p n p p y Other Information About Hotel Available (Pool, Restaurants, Casino ) p p p p p p Providing information about Unique Selling Points p p n p p p Convincing arguments about Cidade when you mention possible competitors? y p n n p p Tried Upselling or Selling Other Services n n n n n n Is your reservations staff asking for the sale? Closing Effectiveness n n n n n n Engaging in Real Conversation p n n n n p Overall Effectiveness 39% 22% 6% 17% 22% 33%

Selling Methodology How do we plan incentives

Incentive Planning-Approach Pure Commission Quota Territory Share Goal Share/Share Change Relative Measure Relative Rank Flat Rate High Motivation High ROI Low Motivation Low ROI

Pure Commission

Quota

Territory Share Goal

Share/Share Change

Relative Measure

Relative Rank

Flat Rate

High Motivation

High ROI

Low Motivation

Low ROI

Incentive Planning Key Considerations Since the pure commission plan has the highest potential ROI and the highest Motivation effect why would we not use this in all cases? This plan at the top of the continuum only work when the forecast is perfect. If the plan is under-forecast the corporation can largely over pay. If the plan is over-forecast the sales force will quickly become unmotivated. A variance of more than 15% in the forecast can cause drastic over or underpayments. Most commission plans do not have a linear payout and consequently 15% low in share or units can result in 30% low in payout. And vice versa.

Since the pure commission plan has the highest potential ROI and the highest Motivation effect why would we not use this in all cases?

This plan at the top of the continuum only work when the forecast is perfect.

If the plan is under-forecast the corporation can largely over pay.

If the plan is over-forecast the sales force will quickly become unmotivated.

A variance of more than 15% in the forecast can cause drastic over or underpayments.

Most commission plans do not have a linear payout and consequently 15% low in share or units can result in 30% low in payout. And vice versa.

Credentials

Master Sun Consulting Master Sun Consulting was founded in 2003, focusing on Strategy Development & Strategy Implementation. Functionally it focused on sales & distribution , marketing & brand building, operations management & service quality, capability development & training

Master Sun Consulting was founded in 2003, focusing on Strategy Development & Strategy Implementation.

Functionally it focused on sales & distribution , marketing & brand building, operations management & service quality, capability development & training

Projects by Master Sun Consulting Real Estate & Construction Related Tata Power Mandala Asset Solutions Grace Realty VNC Steel Saurashtra Cement Hospitality & Travel TravelPort Holidays Thackers Hospitality Services Cidade De Goa MSM Snacks & Sweets Camy Wafers Cele Jor Bakery JW Marriott Marketing & Brand Building Firms Perspectrum, Percept Group Icon Added Value, WPP Group Lumeire Business Solutions Others L b i India ITC IBD BST Sayona Tata Steel ICICI Bank Systime CMS GTL Limited VNC Electrodes Shringar Cinemas (Fame)

Real Estate & Construction Related

Tata Power

Mandala Asset Solutions

Grace Realty

VNC Steel

Saurashtra Cement

Hospitality & Travel

TravelPort Holidays

Thackers Hospitality Services

Cidade De Goa

MSM Snacks & Sweets

Camy Wafers

Cele Jor Bakery

JW Marriott

Marketing & Brand Building Firms

Perspectrum, Percept Group

Icon Added Value, WPP Group

Lumeire Business Solutions

Others

L b i India

ITC IBD

BST Sayona

Tata Steel

ICICI Bank

Systime CMS

GTL Limited

VNC Electrodes

Shringar Cinemas (Fame)

Key People for Sales & Distribution Sarvajeet Chandra : Founder & Managing Partner Specializes in strategy development, strategy execution & change management. Excellent business results in the functional areas of Sales & Distribution, Marketing & Brand Building , Manufacturing & Operations Management Engagements/assignments on Sales, Marketing & Distribution : ITC ITD, Tata Steel, Tata Power, Saurashtra Cement, VNC Electrodes, NVB Steels, Mandala Asset Solutions (Australia), Lavendor Group (UK), Eveready Batteries, Blue Star, ITC IBD, Shringar Cinemas, Baazee.com, TravelPort Holidays, Pidlilite Industries (Fevicol), Kodak, Star TV, World Gold Council etc. Operations & Service : Texmaco (Indonesia), ICICI Bank , Lion Group (Malaysia), Gujarat Glass, Indo Rama (Indonesia), Laxmi Machine Works ,MSM,Tata International etc. Capability Development : GTL Limited, JWT Marriott, Vizualize Technologies, BST Sayona,Systime (CMS Group) etc. Worked for ICICI Bank, Renoir Consulting UK , Ebay India & Ogilvy & Mather A specialized MBA in Marketing, Brand Management & Communications from MICA, Ahmedabad. He is a mechanical engineer from MS University.

Sarvajeet Chandra : Founder & Managing Partner

Specializes in strategy development, strategy execution & change management.

Excellent business results in the functional areas of Sales & Distribution, Marketing & Brand Building , Manufacturing & Operations Management

Engagements/assignments on

Sales, Marketing & Distribution : ITC ITD, Tata Steel, Tata Power, Saurashtra Cement, VNC Electrodes, NVB Steels, Mandala Asset Solutions (Australia), Lavendor Group (UK), Eveready Batteries, Blue Star, ITC IBD, Shringar Cinemas, Baazee.com, TravelPort Holidays, Pidlilite Industries (Fevicol), Kodak, Star TV, World Gold Council etc.

Operations & Service : Texmaco (Indonesia), ICICI Bank , Lion Group (Malaysia), Gujarat Glass, Indo Rama (Indonesia), Laxmi Machine Works ,MSM,Tata International etc.

Capability Development : GTL Limited, JWT Marriott, Vizualize Technologies, BST Sayona,Systime (CMS Group) etc.

Worked for ICICI Bank, Renoir Consulting UK , Ebay India & Ogilvy & Mather

A specialized MBA in Marketing, Brand Management & Communications from MICA, Ahmedabad. He is a mechanical engineer from MS University.

Key People for Sales & Distribution Rajjeet Chandra : Lead for Sales & Distribution Rajjeet Chandra is a hotel management graduate with a post graduate diploma in management (Specializing in Marketing). He has around a decade of experience working on Food & Hospitality, Real Estate and Travel. Functionally he has experience working in Sales, Business Development, Marketing, Project Management, Franchising & Operations assignments. He has done Sales , Marketing & Distribution assignments for clients like Mandala Asset Solutions (Sydney), Accor group, Intercontinental group of Hotels (Worldwide), Sheraton Group of Hotels (Middle East & East Africa), Le Meridian Group of Hotels (India & Middle East), TravelPort Holidays (India), Ambassador (Manali), Grace Realty (Nagpur), Gits Food, Camy, MSM. Worked with Sarovar Hotels & Resorts, Thackers Hospitality Services & Hospitality Marketing Concepts (California)

Rajjeet Chandra : Lead for Sales & Distribution

Rajjeet Chandra is a hotel management graduate with a post graduate diploma in management (Specializing in Marketing). He has around a decade of experience working on Food & Hospitality, Real Estate and Travel.

Functionally he has experience working in Sales, Business Development, Marketing, Project Management, Franchising & Operations assignments.

He has done Sales , Marketing & Distribution assignments for clients like

Mandala Asset Solutions (Sydney), Accor group, Intercontinental group of Hotels (Worldwide), Sheraton Group of Hotels (Middle East & East Africa), Le Meridian Group of Hotels (India & Middle East), TravelPort Holidays (India), Ambassador (Manali), Grace Realty (Nagpur), Gits Food, Camy, MSM.

Worked with Sarovar Hotels & Resorts, Thackers Hospitality Services & Hospitality Marketing Concepts (California)

Call Master Sun: Sarvajeet Chandra Mobile : +91 9920803060 Email : sarvajeet@strategyexecution.in