Examples of basic guidance or tutorial for sales managers to make proper sales targets and less risks of unachieved sales target

1. 6 Steps to Set Up Company’s
Sales Targets: Examples
By M. Nino Mayvi Dian
4/18/2014 www.esmconsultant.com

2. Step 1: Collecting Historical Sales Data
• Example: PT ‘X’, a stainless steel importer company, sales volume data from 2011-2012*
4/18/2014 www.esmconsultant.com
*The numbers were not actual and modified for public use
SUS Types
Volume (Kg)
2011 2012
Cold Rolled 334.666,33 301.301,84
Hot Rolled 741.788,35 1.082.903,61

3. Step 2: Make Arrangements of
Historical Sales Data
• Example: PT ‘X’, a stainless steel importer company, overall sales actual achievement Vs sales
target 2011-2012*
4/18/2014 www.esmconsultant.com
*The numbers were not actual and modified for public use
Product Solds
Actual Volume (Kg) Target Volume (Kg) Actual Vs Target (%)
2011 2012 2011 2012 2011 2012
SUS 1.076.455 1.384.205 1.420.000 1.780.000 75,81% 77,76%

4. Step 2: Make Arrangements of
Historical Sales Data
• Example: PT ‘X’, a stainless steel importer company, sales actual achievement Vs sales target
2011-2012 from multiple product types*
4/18/2014 www.esmconsultant.com
SUS Types
Actual Volume (Kg) Target Volume (Kg) Actual Vs Target (%)
2011 2012 2011 2012 2011 2012
Cold Rolled 334.666 301.302 420.000 480.000 79,68% 62,77%
Hot Rolled 741.788 1.082.904 1.000.000 1.300.000 74,18% 83,30%
*The numbers were not actual and modified for public use

5. Step 2: Make Arrangements of
Historical Sales Data
• Example: PT ‘X’, a stainless steel importer company, actual sales volume contributions 2011-
2012 from each market segment*
4/18/2014 www.esmconsultant.com
*The numbers were not actual and modified for public use
No Market Segments
Volume Contributions (%)
2011 2012
1Contractor 14,91% 14,30%
2Fabricator 31,23% 19,62%
3Manufacture 26,96% 47,30%
4Supplier 26,90% 18,79%

6. Step 2: Make Arrangements of
Historical Sales Data
• Example: PT ‘X’, a stainless steel importer company, top 5 sales volume contributions 2011-
2012 from each market segment and sales territories*
4/18/2014 www.esmconsultant.com
*The numbers were not actual and modified for public use
Highest Area Contributor for Each Segment (Top 5)
Contractor % Fabricator % Manufacture % Supplier/Reseller %
1Jakarta Pusat 20.20%Jakarta Barat 13.57%Sumatera 19.67%Jakarta Pusat 18.28%
2Jakarta Timur 13.56%Kota Bekasi 11.83%Jakarta Selatan 13.73%Sumatera 16.07%
3Kota Bekasi 11.70%Kota Tangerang 11.71%Jawa Barat 10.41%Jakarta Barat 14.58%
4Kab. Bekasi dan
Sekitarnya
9.65%Jakarta Pusat 11.25%Jakarta Pusat 9.63%Jakarta Utara 8.20%
5Jakarta Utara 7.97%Sumatera 7.46%Jakarta Timur 9.02%Kota Tangerang 6.39%

7. Step 3: Create Charts and Trend Lines
• Example: External market data for stainless steel market 2010-2012 from Indonesia Bureau of
Statistics*
4/18/2014 www.esmconsultant.com
*The numbers were not actual and modified for public use
2010 2011 2012
Hot Rolled Coil Stainless Steel 102.624.909,00 84.026.861,00 65.155.533,00
Hot Rolled Plate Stainless Steel 51.765.141,00 41.138.351,00 29.545.410,00
Cold Rolled Plate & Coil Stainless
Steel
31.554.600,00 35.588.942,00 36.506.898,00
-
20.000.000,00
40.000.000,00
60.000.000,00
80.000.000,00
100.000.000,00
120.000.000,00
ImportVolumes(kg)
Indonesia's Stainless Steel Plate/Coil Import Volumes 2010-2012

8. Step 4: Generate Analysis
• Example: Data analysis results for PT ‘X’ sales performance in 2011-2012
– Overall sales performance increased from 2011-2012 by 28.59%
– These incremental mostly supported by significant growth in hot rolled
product with 46%, while cold rolled product is decreased by 10%. Therefore, in
2013, sales target will be focused on selling hot rolled products
– These sales volumes mostly contributed by manufacture segment, which it
gained 47.30% contributions from total sales volumes. And this segment
shown significant growth at 30%. In 2013, sales target will be focused on
manufacture segment
– Highest area contributor from manufacture segment was gained from
Sumatera, with 19.67%. In 2013, Sumatera sales territory will have major sales
target portions compare to other territories
– Even though at overall hot rolled market was decreased from 2010-2012, but
refers to significant sales growth on hot rolled products and current company’s
hot rolled market portions in Indonesia only 1.14%. There’s still enormous
space for the company to put higher sales target in hot rolled products
4/18/2014 www.esmconsultant.com

9. Step 5: Set The Sales Targets based on
Analyses
• Example: Setting up the sales target with using SMART as basic principle
– Specific,
• Sales volume target for 2013 is 1,800 Tons or increase 30% from 2012 (What do you want to be
accomplished)
• If the company achieves 30% growth, employee compensation and benefits will be increased by
minimum 12% and more investment for company’s infrastructure development (Why do you want to
accomplish the goals)
• This sales volume target will be achieved by 8 sales persons, who will get additional team members in
January 13 with at least 6 sales reps (Who will accomplish the goals)
• 60% of sales volume target will be assigned to hot rolled products, 48% of total sales volume target
will be assigned to manufacture segment, and 40% of sales team will be assigned to acquire more new
manufacture customers in Sumatera area (where to accomplish the goals)
• To achieve 1,800 tons sales volume, it will need at least 210 tons of product stocks (40% buffer
stocks), at least additional 2 distribution vehicles, which it will increase the capital to fulfill it (which
requirements needed to accomplish the goals)
– Measurable,
• Sales volume target for 2013 is 1,800 tons (quantitative measurement)
– Achievable,
• The sales target is achievable, because previous sales growth was 28.59% and new sales target is
increasing 30% from 2012 achievement.
• Growth spaces in the overall market are still available, because company’s current market portion only
1.14% compare to country’s overall market
4/18/2014 www.esmconsultant.com

10. Step 5: Set The Sales Targets based on
Analyses
• Example: Setting up the sales target with using SMART as basic principle
– Realistic,
• Company is able to fulfill the requirements for sales target
incremental, because no significant internal conditions can obstruct the
efforts to achieve the target.
– Time Frame,
• Sales volume target which has to be achieved in 12 months in 2013 is
1,800 tons. Periodic evaluations will be conducted by monthly and
quarterly.
4/18/2014 www.esmconsultant.com

11. Step 6: Share The Sales Target to Your
Team Members
• Example: Sharing the sales target to team members
– Conduct annual sales kick off meeting for sales team members. This kick off
meeting will announce the sales target and sales strategies to achieve it.
– Conduct weekly sales evaluation meeting. This evaluation is purposed to
remind about the target and improvement for any deviations occurred.
– Conduct monthly sales evaluation meeting.
– Conduct quarterly sales evaluation meeting.
– Conduct half yearly sales evaluation meeting.
4/18/2014 www.esmconsultant.com

12. THANK YOU
4/18/2014 M. Nino Mayvi Dian www.esmconsultant.com