Analysis of sales force performance
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Analysis of sales force performance



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Analysis of sales force performance Analysis of sales force performance Document Transcript

  • 6 ACKNOWLEDGEMENT It gives me please to thanks my guide Mr. Tushar Bhavsar (Manager Marketing) and Mr. Ajit Parundekar (Executive Director) of Motwane Manufacturing Company Pvt. Ltd. for providing support on my project. I also thank them for involving me on some top managerial activities like sales forecasting, advertising planning and channel management. I got a real experience of sales in these two months because of constant interaction of sales force with me. Hence these 60 days are really memorable from my marketing career point of view. I also thank my Director Dr. Sharad Joshi for helping me in deciding the company and subsequently the project title. I also thank to my Guide Prof. Mrs. Smita Sovani for providing support at all point of time. I thank Prof. Yuraj Lahoti, Prof. Rajesh Vatkar and Prof. Mahesh Halale for providing valuable support at every point of time. I specially thank Prof. Vishal Soni since his IT lectures were of immense help in the project work. Finally I would like to thank my parents who are supporting me at every point of life. I would also thank to all my friends and members of VIM family who are helping me at every point of need and guidance. NAVIN SHUKLA MBA-II, MB0536
  • 7 INDEX Sr. No. TOPIC Page No. 1 EXECUTIVE SUMMARY 1-2 2 OBJECTIVE & SCOPE OF THE PROJECT 3-4 2.1 Objective of the Project 3 2.2 Object of the Study 3 2.3 Scope of the Project 4 3 COMPANY PROFILE 5-25 3.1 About Company 5 3.2 Quality policy 6 3.3 Company Logo 7 3.4 Company Slogan 7 3.5 Company Photo 7 3.6 Organization Chart 8 3.7 Brief History 9 3.8 Partnerships 9 3.9 Network 9 3.10 Products and its detailed list 10 3.11 Customers 12 3.12 Product Profile 13 4 THEORETICAL BACKGROUND 26-32 4.1 PLC Concept 26 4.2 BCG Growth - Matrix Model 27 4.3 Market Segmentation 30 5 RESEARCH METHODOLGY 33-34 6 DATA ANALYSIS 35-46 6.1 Part A: Format for sales Force 35 6.2 Part B: Sales Forecasting and Analysis 38 6.3 Part C: Market Segmentation 46 6.4 Part D: Advertizing Planning 46 7 FINDINGS 47-49 8 LIMITATIONS 50
  • 8 INDEX 9 CONCLUSION 51 10 RECOMMENDATION 52-53 11 BIBLIOGRAPHY 54 12 ABBREVIATIONS 55 13 ANNEXURE Annexure A: Daily Sales Report 56 Annexure B: DSR monitoring report 57 Annexure C: Montly Tour Plan 58 Annexure D: Monthly visit monitoring report 59 Annexure E: Daily Call monitoring Report 60 Annexure F: Offer Tracking sheet 61 Annexure G: Sales Turnover last financial year 62-63 Annexure H: Production planning Sheet 64 Annexure I: Dealer Target Sheet 2006-2007 65 Annexure J: Sales Forecast 2006-2007 66-67 Annexure K: Broad Segmentation 68 Annexure L: Database of cement companies 69-70 Annexure M: Comparison sheet for Advertizement 71-72 Annexure N: Dearler application form 73-74 Annexure O: List of cities mapped in Various Territories 75-76
  • 9 1. EXECUTIVE SUMMARY 1.1 INTRODUCTION The project is about the effect of new sales force on the performance of the company. This is generally being done by efficiently monitoring the sales team, Channel Management, Market Segmentation, Advertising planning and through various national and international alliances. Hence the title of the project is chosen as Analysis of sales force performance for Motwane Manufacturing Company Private Ltd. 1.2 SELECTION OF THE TOPIC The company established in 1960 is pioneer in Multimeters but is hardly able to get even 10% of the market and the share is going down year by year. Rishab and Meco came way after Motwane in the market but still are the leaders in the market. Hence to increase the sales turnover and to increase the market share company has decided to go for increasing the sales team at 16 major locations in India with a further increase of 50 engineers by 2007. To start with one Engineer was appointed followed by 5 Engineers. Hence a system is to be developed to monitor the sales team across various territories/locations in the country. The project involves various aspects of marketing like sales force automation, market segmentation, channel management, advertising, sales forecasting and also a unique opportunity to work with Executive Director of the company and other top management personnel. This project is done at Nasik Road factory which being the registered factory and office of the company since from last 40 years. I have decided about this project in the month of January reason being the first recruitment was supposed to be in the
  • 10 month of February and I worked for the project in the month of June and July since by then the other sales engineer s have joined the team. The project was carried by consulting the Production Manager, Marketing Manager, Human Resource Manager, EDP department and the Executive Director being the main guide for me. I have experienced a real sales experience since I was continuously interacting with the sales team for the entire two months.
  • 11 2. OBJECTIVE & SCOPE OF THE PROJECT 2.1 OBJECTIVE OF THE PROJECT To analyze the increase in sales turnover of the company during the current financial year by o Sales force Automation. o Segmenting the companies to find the target market. o Advertisement planning and participating in various national and international trade shows. o Sales forecasting for the Sales Engineer and the Channel partners. o To increase the product basket by means of JV s and OEM brandings. 2.2 OBJECTIVE OF THE STUDY Primary: - 1. To analyze the performance of new sales team on the turnover of the company. 2. To design various formats required for monitoring the sales team. 3. To forecast sales for the Engineers and the channel partners. 4. To segment the companies by using last five years data so as to find the target market. Secondary: - 1. To plan for advertising for the financial year so as to help the sales team. 2. To plan for exhibitions, trade shows so as to increase the sales. 3. To identify the unique customers. 4. To get top ten channel partners. 2.3 SCOPE OF THE PROJECT: -
  • 12 The scope of the project is mainly focused towards the 1. Sales team, its design and development towards achieving the target set for the financial year. 2. The project is restricted to 16 locations, which are mapped into North, South, East and West. Table 1 3. Out of 16 locations identified only five have been considered for the study. The locations are as under o Mumbai o Delhi o Vadodara o Bhopal o Raipur TERRITORY COVERED NORTH SOUTH EAST WEST Dehradun (DHD) Chennai (CHN) Guwahati (GAU) Mumbai (BOM) Delhi (DEL) Coimbtore (CTR) Kolkata (KOL) Nagpur (NGP) Chandigarh (CHD) Bangalore (BNG) Bhopal (BPL) Lucknow (LCK) Hyderabad (HYD) Raipur (RPR) Jaipur (JAI) Vadodara (BRD)
  • 13 3. COMPANY PROFILE 3.1 ABOUT COMPANY The Motwane Manufacturing Company Private Limited (MMCPL or Motwane ) is a leading Manufacturer and Distributor of high performance Electrical/Electronic Testing, Measuring and Recording Instruments/Systems in India. Established in 1967, the Company Pioneered the Sale and Indigenous Manufacture of Analog Multi meters in India through technical Collaboration with AVO Limited of the United Kingdom. Since then, the Company has initiated several developmental efforts to cover a range of Test and Measurement (T&M) products. In recent years, The Company has deliberately transitioned to become a focused Transmission and Distribution (T&D) solution provider to the electric power industry. By leveraging its competency in designing high precision measuring instruments, MMCPL has successfully designed and delivered automated smart metering solutions to power utilities. Today, Motwane is in a leadership position to deliver the changes that Government of India (GoI), SEBs, and private players need to solve the distribution crisis and power shortages that India is facing: namely by bringing intelligence into the revenue cycle -- by segregating, measuring and identifying energy losses (technical and commercial) from the network backbone to the customer premise on a daily basis; providing for real- time consumption data and load profiles to assess peak demand and network capacity; performing automated energy audits; increasing accuracy in billing and cash management; improving customer service and overall network reliability. As recognition of its innovative efforts in the field of automated metering, Motwane has recently been awarded the first commercial tender for a production-ready Automated Meter Reading (AMR) system by a leading industrial group company, giving the company the largest installed base in the country. Motwane has also been selected by a premier multi-national power solutions company as the preferred supplier of AMR systems in India, thereby increasing its sales leverage to access a large market. In addition, Motwane was an integral contributor to the IT task force report on Power, organized by the Ministry of Power. In conjunction with the shift to provide distribution solutions to the power sector, Motwane has acquired, Krohm Solutions ( Krohm ), a US and India based venture-funded company. Krohm s expertise lies in software services and application software for power distribution companies in North America, Australia and New Zealand. The two companies have been collaborating closely on AMR software development and in joint sales activities for the Indian market. The Company manufactures all of its products in a 4-acre Factory complex at Nashik (a rapidly growing industrial town about 100 miles from Mumbai). This facility also houses an integrated R&D department, which is recognized by Dept. of Scientific and Industrial Research Govt. of India. The
  • 14 quest for quality in all of the products is reflected in the Company s compliance to ISO 9001: 2000 Standards. 3.2 QUALITY POLICY The Motwane Manufacturing Company Pvt. Ltd. Hereafter called MMCPL designs, manufactures and supplies test, measurement, monitoring and recording instruments. MMCPL aims at serving institutional markets like Electricity Utilities, Defense, Public Sector Undertakings, Major Government Organizations and Export Houses apart from its regular small buyers. It is the policy of MMCPL to maintain competitive standards of Quality in Design & Manufacturing of these products by providing identified and adequate resources, establishing, maintaining and continually improving systems, processes, raw materials and training with the aim of improving the quality of measurement, suitability, reliability and long life of its products. This is in addition to meeting the customer requirements and applicable statutory and regulatory norms thereby ensuring satisfaction and loyalty of our customers. It is MMCPL s commitment to fulfill the ongoing needs of our customers by providing them products with latest technologies by in house designing, through technical collaborations or marketing alliances with reputed Indian or Overseas organizations having ISO 9001 Quality Certification. MMCPL shall maintain and continually improve its Quality Management System. This Quality Policy will be periodically reviewed for its continual suitability. Ajit Parundekar (Executive Director) 3.3 COMPANY LOGO 3.4 COMPANY SLOGAN
  • 15 3.5 COMPANY PHOTO 3.6 ORGANIZATION CHART: Organization chart appearing here illustrates functions & their interrelations within the organization. The primary and supporting responsibilities for implementing sections 4 to 8 of ISO 9001 2000 are presented in department interface. In case of non-availability of concerned functions authority & responsibility is considered as decided by respective person or guided by ED. The Hallmark of Quality , Innovation and Reliability ED MR HOD-MKT HOD:R&D
  • 16 ED Executive Director EDP Electronic Data Processing HOD Head of the Department HRD Human Resource Development I/C In charge QA Quality Assurance MKT Marketing MAT Materials MR Management Representative MNT Maintenance 3.7 BRIEF HISTORY Motwane is a privately held firm whose origins are traced back to 1909 when the founding Directors established an Electronics Trading Company that pioneered the I/C PRODUC TION I/C QA I/C REPAIR
  • 17 market for public speaking communication system. The Motwane brand rapidly gained recognition nationwide as its systems were used by freedom fighters during India s struggle for independence from the British. Today, the Company is India s leading producer of Electronic Test and Measuring Instruments and power distribution solutions. 3.8 PARTERNERSHIPS The Company has successfully developed long term relations with reputed local and overseas Companies such as: Siemens Information Systems Limited. As systems integrator/reseller for power utilities CMC Ltd. As systems integrator/reseller for power utilities SPL WorldGroup (US): Product development and reseller relationship Kinectrics (US and Canada): technology and OEM relationship METEX CORPORATION KOREA: Reseller for Indian market WUHAN FANKE TRASFORMER MANUFACTURE CO.PTD PRC. Reseller for Indian market KYROTSU ELECTICAL WORKS LTD., JAPAN 3.9 NETWORK The Company has direct sales Offices in each of the metro cities in India supported by Sales representatives and Dealers all over the country. The Company has also exported its highly successful Microprocessor based Digital Low Resistance Meters and Multimeters to the US (mainly to OEM manufacturers such as Ballantine Laboratories Inc.) and to a smaller extent, the Middle East, Netherlands and Germany. MUMBAI BANGALORE 434 A, Gyan Ghar, 14th Road, Khar (W). Mumbai - 400 052. Flat No. 2, Bathija Court No. 35/13, Langford Road Cross, Bangalore -560 025
  • 18 Tel. : +91-22-260-58895 /96 / 97 Fax : +91-22-260-58898 Tel. : +91-80-227-2592. Fax : +91-80-227-8355 KOLKATA DELHI Audyogik Seva., 4A,Rafi Ahmed Kidwai Road, Kolkata - 700 016. Tel. No. : +91-33-222-95545, 222-94832 Fax : +91-33-222-95550 Pocket K-11, Chitranjan Park, New Delhi- 110 019 Tel. : +91-11-264-72463 Telefax : +91-11-264-85179 The company has identified 16 locations to appoint the sales team. The locations along with the territories are listed in Table 1 and the detailed list is as per annexure O. 3.10 PRODUCTS 1. Test & Measurement Systems. 2. Transmission & Distribution Test Systems. 3. Energy Meters and Smart metering (Automatic Meter Reading) The details of the product segment have been highlighted in detail below. Evolution to Transmission and Distribution (T&D) Solution Provider DSIR, Govt. of India accredited Research and Development delivering system solutions in Energy Metering and Automatic Meter Reading Systems (AMRS) Sold in excess of 100,000 electronic energy meters in 2002 and 2003 Solution Providers to the needs of Transmission and Distribution Testing involving Extra High Voltage up to 800KV. Participated in Nasscom s IT task Force report for Power sector. Performing India s first production-level system for AMRS with a Reliance company to become the largest production-ready reference site in India. Selected by Siemens India as preferred AMRS supplier for India. DETAILED PRODUCT LIST 1. Test & Measurement Systems a) Digital Multimeters: b) Digital Clamp-On-Meters. c) Insulation Resistance Testers
  • 19 d) Digital Micro ohm Meters. e) Multifunctional Handy Scope. f) Functional Generator. g) Universal Frequency Counter. h) Universal Multifunctional Systems. i) High Voltage Probe. 2. Transmission & Distribution Testing a) Series Resonance Systems. b) High Voltage Transformers. c) Transformer Testing. d) Circuit Breaker Testing. e) Automatic Tangent Delta Kits. f) Oil Breakdown Tester. g) Lightening Surge Arrester Testing h) Live Line Testing. 3. Smart Metering and Power Distribution Solutions a) Single Phase Static Energy Meters. b) Three Phase Static Energy Meters. c) Automatic Meter Reading Systems. d) Energy Meter Calibration Systems. e) Automated Energy accounting and auditing f) Meter Data Aggregation and Analysis Software g) Trouble Call Management Software h) High Tension and Low Tension Billing software
  • 20 3.11 CUSTOMERS The Company has very strong relationships with Government agencies and private organizations connected with Defense, Railways, Aviation, Post and Telegraphs, Radio and TV Networks, Communications and Computers, Power Generation Research Laboratories and Educational Institutes. In particular, notable customers with long-standing relationships include All India Radio (AIR), Oil and Natural Gas Corporation (ONGC), the 26 State Electricity Boards (SEB s), Doordarshan TV, the Indian Railways, Air force, army and Navy. Company has its main customers as Government Agencies and Private Organizations connected with Defense, Railways, Aviation, Post and Telegraphs, Radio and TV Networks, Communications and Computers, Power Generation, Research Laboratories and Educational Institutes. In particular, notable customers with long- standing relationships include : All India Radio , Oil and Natural Gas Corporation, State Electricity Boards, Doordarshan , Indian Railways, Air force, Army, Navy and DOT.
  • 21 General Purpose Test and Measurement Products: Digital Multimeters covering over 10 models. Clamp on meters measuring up to 2000A AC/DC. Insulation Tester for various applications from 100V 5KV. Hand Held Digital Storage Oscilloscopes, RF Mill voltmeters. Function Generators, Frequency Counters and Universal Test Systems. 3.12 PRODUCT PROFILE
  • 22 3.12.1 DIGITAL MULTIMETER DM 3570 DM 3760 DM 4540 DM 4570P DM 3540 DM 352
  • 23 3.12.2 COMPARISON OF DIGITAL MULTIMETERS hFE Auto-Ranging Diode & Continuity Multi Display, dBm, Power, Logic, Memory, RS232. Multi Display, dBm, Signal Output, Temperature, Memory, RS232. Multi Display, dBm, Signal out, Logic, Memory, High Speed, RS232. Very High Reliability and well protected. Memory, Auto Power OFF, Dual Display. Auto AC/DC sensing. Specialty 200mH.40mH 400mHInductance 20KHz 20MHz.20KHz 20MHz4 KHz 4MHz4 KHz 4MHzFrequency 20nF 200uF20nF 200uF4nF 400uF4nF - 400µF0.32 32uFCapacitance 200 20M200 20M400 40M200 20M400 40M0.32K 32MResistance 2mA 20A2mA 20A40mA 20A0.2mA 10A0.4mA 20A0.32mA 10ACurrent AC/DC 200mV 750V/1000V 200mV 750V1000V 0.4V 750V/1000V 0.2V 1000V0.4/4V 750/1000V 0.32/3.2V 750/1000V Volts AC/DC DM4570P 4 ½ dgt (TRMS) DM4540 4 ½ dgt. DM3760 3 ¾ dgt. DM352 3 ½ dgt. DM3750 3 ¾ dgt. DM3540A 3 ¾ dgt. Models
  • 24 3.12.3 SELECTION GUIDE FOR DIGITAL MULTIMETERS DM3540A, 1600 DM352, 4950 DM3760, 7800 DM4540, 8800 DM4570P, 10500 DM3750B, 2950 Features UserReliability Signal Output, Power, Conductance. Logic, Temperature, dBm, Memory, Offset & Comparison. Auto-ranging, hFe, Frequency, Capacitance, Bar Graph, Data Hold. Voltage, Current, Resistance, Continuity, Diode Check. Rarely UsedLess Frequently Used EnhancementEssential
  • 25 3.12.4 CLAMP METERS <30 OhmCONTINUITY ------DIODE TEST 2KHz 20MHzFREQUENCY 20K, 2MRESISTANCE 20A, 200A, 1000AAC CURRENT 200V, 700VAC VOLTAGE 200V, 1000VDC VOLTAGE RangeParameter <30 OhmCONTINUITY ------DIODE TEST 50Hz 100KHzFREQUENCY 240E, 24MOhmRESISTANCE 240uA 2000AAC/DC CURRENT 2.4V, 1000VAC VOLTAGE(Trms) 240mV - 1000VDC VOLTAGE RangeParameter DCM-30A DCM-39A
  • 26 3.12.5 LOW RESISTANCE METERS 2m 20m 200m 2 20 200 2K 20K 10mA 1A 10A 100 A LR201 LR2045 LR2065 KDC Fuse Testing, Detonator Testing. High Grade Weld Joints, Bond Testing, Switch Gear Test, Contactor Testing. High Capacity Transformers, Medium grade weld joints, MV Bus-bars, Cables. Lab Testing, Electronic Components, Low Capacity Transformers & Motors, PC Boards, Relays. Typical Applications LR201KDCLR2065LR 2045Models
  • 27 Insulation Testing of Appliances, Cables, Transformers, Switchgears, Motors, Generators, Relays, Contactors and Power Tools of various ratings. Applications Power Analog (Log)DigitalDigitalDigitalRead-Out 5% - 10%5% - 10%5%1%Accuracy 50M 5G20G2000M200M / 2000M Range 2500V / 5000V500/1000/ 2000/2500V 100/250/ 500/1000V 500V/ 1000V Test Voltage B50KD20KD266D2KModels 3.12.6 INSULATION TESTOR
  • 28 Energy and Power Measurement Products: Single Phase Static Energy Meters LCD / Stepper Motor Type. Three Phase Static Energy Meters LCD / Stepper Motor Type. Various Ratings from 5A to 80A, Whole Current and CT operated. Various parameters like KWh, KVArh, V, I, Cos phi, MD etc. Standalone or with Optical Port and Power Line Communication Enabled. Well suited for Automatic Meter Reading System. 3.12.7 ENERGY METERS
  • 29 3.12.8 TRANSFORMER TESTING EQUIPMENTS SERIES RESONANCE SYSTEM 110MVA Transformer Test System Dynamic Contact Test for Switchgears Tan Delta Auto Test System
  • 30 3.12.9 LT AMR (Reliance implementation) Data acquisition and control based on Power line carrier for last mile (between DTR and consumer meters). Proven reliability over last mile distances of 3-4 Km. Ability to handle very high density of meters on DTR (> 800:1). Intelligent concentrator can set separate interval schedules for each meter. DCU can store upto 90 days data on 15 min intervals. Outage log on DCU.
  • 31 Customer Care and Trouble Call Management System Designed to handle commercial and technical complaints Integration-ready with IVR For registering a complaint through a phone GIS For locating the fault GPS For Easy tracking of the Mobile Crew Mobile Workforce Management Systems For optimum use of the available workforce Online Status of complaints Auto Forwarding of complaint details to the relevant staff SMS, Pager Email Analysis and Reporting Minimizing Human Intervention Flexible and Open architecture, developed using Industry Standard technologies Scalable to handle large number of calls Some of the salient features of TCMS are: 3.12.10 CUSTOMER CARE: TROUBLE CALL MANAGEMENT SYSTEM
  • 32 3.12.11 QUALITY PROCESS After Sales Service Sales & Marketing . Calibration Traceability Quality Assurance Manufacturing Design and Development Product Approvals PRODUCT REALIZATION BIS, ERTL, NPLDGQA, BSF, MHA DSIR, ISO9001 ISO9001, BIS, DGQA ISO9001,BIS, DGQA ISO9001 ISO9001,BIS, DGQA, ERTL, NPL ISO9001
  • 33 0.1%H. TinsleyStandard Inductors7. 0.1%Hewlett Packard (Agilent Technologies) R.F. Synthesized Signal Generator. 6. 0.2%Taisei (Japan)Insulation Resistors up to 500G 4. 0.05%M.T.E. SwitzerlandEnergy and Power Standard Up to 75KW 5. 0.006%H. TinsleyStandard Resistors 100 - 10000 3. 0.006%Leeds & Northrop (Northrop Grumman Ltd.) Standard Resistors 0.0001 - 10 2. 0.005%DATRON WAVETEK, USA FLUKE AC/DC Voltage, Current, Resistance, Capacitance. 1. Basic AccuracyMakeStandardSl. 3.12.12 CALIBERATION STANDARDS
  • 35 4. THEORETICAL BACKROUND The company started in 1960 was pioneer in Analog Multimeters in India through technical collaboration with AVO Limited of United Kingdom. The company was having monopoly till 1985 and has captured almost 95% of the market. Then came the era of digital technology and company didn t realized that the Product life of their product was moving towards the decline stage. 4.1 PLC CONCEPT Decline Stage As sales decline, the firm has several options: o Maintain the product, possibly rejuvenating it by adding new features and finding new uses. o Harvest the product - reduce costs and continue to offer it, possibly to a loyal niche segment. o Discontinue the product, liquidating remaining inventory or selling it to another firm that is willing to continue the product. The marketing mix decisions in the decline phase will depend on the selected strategy. For example, the product may be changed if it is being rejuvenated, or left unchanged if it is being harvested or liquidated. The price may be maintained if the product is harvested, or reduced drastically if liquidated. Based on the above the theory the firm liquated remaining inventory thereby selling to its channel partners. The company was not ready to face the upcoming competition in the market and hence was on the stage of lockout.
  • 36 But with the help of OEM branding and good brand name the company was somehow able to survive; but couldn t achieve the growth rate with which the other company were growing. Hence the company s decision to increase the sales force and invest for expansion is best explained by using BCG model. 4.2 The BCG GROWTH-SHARE MATRIX The BCG Growth-Share Matrix is a portfolio-planning model developed by Bruce Henderson of the Boston Consulting Group in the early 1970's. It is based on the observation that a company's business units can be classified into four categories based on combinations of market growth and market share relative to the largest competitor, hence the name "growth-share". Market growth serves as a proxy for industry attractiveness, and relative market share serves as a proxy for competitive advantage. The growth-share matrix thus maps the business unit positions within these two important determinants of profitability. The BCG Growth-Share Matrix This framework assumes that an increase in relative market share will result in an increase in the generation of cash. This assumption often is true because of the experience curve; increased relative market share implies that the firm is moving forward on the experience curve relative to its competitors, thus developing a cost advantage. A second assumption is that a growing market requires investment in assets to increase capacity and therefore results in the consumption of cash. Thus the position of a business on the growth-share matrix provides an indication of its cash generation and its cash consumption. Henderson reasoned that the cash required by rapidly growing business units could be obtained from the firm's other business units that were at a more mature stage and generating significant cash. By investing to become the market share leader in a rapidly growing market, the business unit could move along the experience curve and develop a cost advantage. From this reasoning, the BCG Growth-Share Matrix was born.
  • 37 The four categories are: Dogs - Dogs have low market share and a low growth rate and thus neither generate nor consume a large amount of cash. However, dogs are cash traps because of the money tied up in a business that has little potential. Such businesses are candidates for divestiture. Question marks - Question marks are growing rapidly and thus consume large amounts of cash, but because they have low market shares they do not generate much cash. The result is large net cash consumption. A question mark (also known as a "problem child") has the potential to gain market share and become a star, and eventually a cash cow when the market growth slows. If the question mark does not succeed in becoming the market leader, then after perhaps years of cash consumption it will degenerate into a dog when the market growth declines. Question marks must be analyzed carefully in order to determine whether they are worth the investment required to grow market share. Stars - Stars generate large amounts of cash because of their strong relative market share, but also consume large amounts of cash because of their high growth rate; therefore the cash in each direction approximately nets out. If a star can maintain its large market share, it will become a cash cow when the market growth rate declines. The portfolio of a diversified company always should have stars that will become the next cash cows and ensure future cash generation. Cash cows - As leaders in a mature market, cash cows exhibit a return on assets that is greater than the market growth rate, and thus generate more cash than they consume. Such business units should be "milked", extracting the profits and investing as little cash as possible. Cash cows provide the cash required to turn question marks into market leaders, to cover the administrative costs of the company, to fund research and development, to service the corporate debt, and to pay dividends to shareholders. Because the cash cow generates a relatively stable cash flow, its value can be determined with reasonable accuracy by calculating the present value of its cash stream using a discounted cash flow analysis. Under the growth-share matrix model, as an industry matures and its growth rate declines, a business unit will become either a cash cow or a dog, determined solely by whether it had become the market leader during the period of high growth. While originally developed as a model for resource allocation among the various business units in a corporation, the growth-share matrix also can be used for resource allocation among products within a single business unit. Its simplicity is its strength - the relative positions of the firm's entire business portfolio can be displayed in a single diagram. The company is in the Question Mark segment with high growth rate and low market share.
  • 38 4.3 MARKET SEGMENTATION Market segmentation is the identification of portions of the market that are different from one another. Segmentation allows the firm to better satisfy the needs of its potential customers. 4.3.1 THE NEED FOR MARKET SEGMENTATION The marketing concept calls for understanding customers and satisfying their needs better than the competition. But different customers have different needs, and it rarely is possible to satisfy all customers by treating them alike. Mass marketing refers to treatment of the market as a homogenous group and offering the same marketing mix to all customers. Mass marketing allows economies of scale to be realized through mass production, mass distribution, and mass communication. The drawback of mass marketing is that customer needs and preferences differ and the same offering is unlikely to be viewed as optimal by all customers. If firms ignored the differing customer needs, another firm likely would enter the market with a product that serves a specific group, and the incumbant firms would lose those customers. Target marketing on the other hand recognizes the diversity of customers and does not try to please all of them with the same offering. The first step in target marketing is to identify different market segments and their needs. 4.3.2 REQUIREMENTS OF MARKET SEGMENTS In addition to having different needs, for segments to be practical they should be evaluated against the following criteria: Identifiable: the differentiating attributes of the segments must be measurable so that they can be identified. Accessible: the segments must be reachable through communication and distribution channels. Substantial: the segments should be sufficiently large to justify the resources required to target them. Unique needs: to justify separate offerings, the segments must respond differently to the different marketing mixes. Durable: the segments should be relatively stable to minimize the cost of frequent changes.
  • 39 A good market segmentation will result in segment members that are internally homogenous and externally heterogeneous; that is, as similar as possible within the segment, and as different as possible between segments. 4.3.3 BASES FOR SEGMENTATION IN INDUSTRIAL MARKETS In contrast to consumers, industrial customers tend to be fewer in number and purchase larger quantities. They evaluate offerings in more detail, and the decision process usually involves more than one person. These characteristics apply to organizations such as manufacturers and service providers, as well as resellers, governments, and institutions. Many of the consumer market segmentation variables can be applied to industrial markets. Industrial markets might be segmented on characteristics such as: o Location o Company type o Behavioral characteristics Location In industrial markets, customer location may be important in some cases. Shipping costs may be a purchase factor for vendor selection for products having a high bulk to value ratio, so distance from the vendor may be critical. In some industries firms tend to cluster together geographically and therefore may have similar needs within a region. Company Type Business customers can be classified according to type as follows: o Company size o Industry o Decision making unit o Purchase Criteria Behavioral Characteristics In industrial markets, patterns of purchase behavior can be a basis for segmentation. Such behavioral characteristics may include: o Usage rate o Buying status: potential, first time, regular, etc. o Purchase procedure: sealed bids, negotiations, etc.
  • 40 6. PROJECT ANALYSIS: - 6.1 PART A: FORMAT FOR SALES FORCE 6.1.1 DAILY SALES REPORT (DSR): (AS PER ANNEXURE A) o The report consists of all the necessary input to trace the customer requirements. o It helps the account department to compare the expenditure details with the DSR. o It helps the HR department to manage the attendance details of the Sales Engineer. o It also helps to know the marketing team what is the potential business with the customer and promotional expenses required to get the order. o It also helps to know the competitive scenario and ways to overcome them. o Along with the total customer summary it helps us to know the next steps to be taken to acquire the order. 6.1.2 DSR MONITORING REPORT: (AS PER ANNEXURE B) o This report is the summary of Daily Sales Report and contains all the necessary columns to trace a sales call. o It acts as the MIS for top management as every sales engineer can be evaluated case by case. o This report helps to monitor the sales engineer at individual level throughout the month. 6.1.3 MONTHLY TOUR PLAN: (AS PER ANNEXURE C) o This report helps in advance to know the marketing team about the customer visits. o It also reminds the Sales Engineer about the sales call to be given to the end customer.
  • 41 o It helps to plan the budgetary expenses for the tour. 6.1.4 MONTHLY VISIT PER CUSTOMER MONITORING REPORT: (AS PER ANNEXURE D) o This report acts as a MIS for the middle level management. o This report gives the number of visits given to a particular customer in a month. o It also gives the traceability of a customer till the order is received or lost. o Depending upon the potential business value the sales engineer can concentrate over the customer and accordingly plan his visit. o This report also helps to identify unique customer. 6.1.5 DAILY CALL MONITORING REPORT: (AS PER ANNEXURE E) o This report gives the total number of calls given by an individual on a daily basis for a particular month. o It gives the variance between the planned calls and the actual. o It also helps the HR department to manage the daily attendance. 6.1.6 OFFER TRACKING SHEET: (AS PER ANNEXURE F) o This helps the sales force to monitoring each and every case till the final order is received or lost. o This also helps the head office to monitor each and every case. o It also helps to monitor the channel partners if any enquiry is forwarded to them.
  • 42 6.2 PART B: SALES FORECASTING AND ANALYSIS 6.2.1 SALES TURNOVER LAST FINANCIAL YEAR: (AS PER ANNEXURE G) o This table helps to project future sales for the Channel partners and the Sales Engineer. o It also gives percentage wise sales contribution of direct customers and channel partners on the company turnover. 6.2.2 PRODUCTION PLANNING SHEET: (AS PER ANNEXURE H) o This sheet helps to plan the production as per the budgeted figures. o This also helps to plan the expected delivery schedule for the customer. o This helps the materials department to effectively monitor the inventory. 6.2.3 TARGET SHEET FOR CHANNEL PARTNERS :( AS PER ANNEXURE I) o This table gives the projection of total sales for channel partners for the current financial year. o This table also gives last year sales by individual channel partners. This forecast helps to plan and monitor the Channel sales and its effective follow-ups by the sales team. 6.2.4 SALES FORECAST FOR CURRENT FINANCIAL YEAR: (AS PER ANNEXURE J) o This gives the total sales forecasting product wise by taking into consideration the total quantity to be sold along with the total amount. o The forecast includes the Co-branded products of a Japanese company. o This is the target which a sales engineer of a particular territory should achieve in current financial year
  • 43 . 6.2.5 CUMULATIVE SALES OF ALL TERRITORIES BUDGETED VERSUS ACTUAL FOR 2006-07(Budgeted figure as per annexure J) CUMULATIVE SALES FOR FOUR MONTHS 2006-07 TERRITORY BUDGETED ACTUAL BUDGETED IN LACS ACTUAL IN LACS BNG 1370256 772645 13.70 7.73 BOM 3205896 3672316 32.06 36.72 BPL 207976 482211 2.08 4.82 BRD 844576 1395407 8.45 13.95 CHD 844576 253326 8.45 2.53 CHN 844576 207790 8.45 2.08 CTR 422360 71340 4.22 0.71 DEL 2817760 1601710 28.18 16.02 DHD 422360 25500 4.22 0.26 GAU 207976 12160 2.08 0.12 HYD 954080 258697 9.54 2.59 JAI 207976 15980 2.08 0.16 KOL 1882512 587123 18.83 5.87 LCK 422360 232993 4.22 2.33 NGP 422360 113402 4.22 1.13 RPR 207976 465849 2.08 4.66 TABLE 2 o The figures in bold are the places where sales force is actively working. o The actual sales had exceeded the budgeted figures at four places where sales force is employed except Delhi. o The budgeted sales at these five places was 72.85 lacs where as the actual sales is 76.17 Lacs. o Since Delhi had not been able to reach the budgeted figure. There has been increase in sales by 4.56%. o If Delhi is not considered then the budgeted figure was 44.667 Lacs and actual is 60.15 Lacs. o So the increase in sales is 34.65% for four territories. o Whereas all the other territories the actual figure is less then the budgeted figure.
  • 44
  • 45 6.2.6 GRAPHICAL REPRESENTATION OF BUDGETED VERSUS ACTUAL SALES Territorywise Budget Vs Actual 2.08 8.45 8.45 4.22 28.18 4.22 2.08 9.54 2.08 18.83 4.22 4.22 36.72 4.82 13.95 2.08 8.45 32.06 13.70 0.16 4.66 1.13 2.33 5.87 2.59 0.120.26 16.02 0.71 2.08 2.53 7.73 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 BNG BOM BPL BRD CHD CHN CTR DEL DHD GAU HYD JAI KOL LCK NGP RPR Territory Rs.inLacs Budget Actual
  • 27 6.2.7 LAST YEAR SALES FOR FOUR MONTHS (AS PER ANNEXURE F) T A B L E 3 6.2.8 COMPARISON FOR FOUR MONTHS SALES 2005-06 & 2006-07(Data as per Table 2 & Table 3) TA BLE 4 o Last year sales of four months for five selected territories were 44.25 Lacs whereas the sales for the year 2006-07 are 76.08 Lacs. o So there is 71.93 % increase in sales from last year. o So all the territories have exceeded the sales from last year due to involvement of sales force. o The graph below shows that all territories have exceeded the sales from last year except Delhi where it is same for both the years. o Where as the total sales for four months for all the territories was 101.46 Lacs compared to the last year sales of 71.4 Lacs (Refer Table 5). SALES FOR 2005-2006 MUMBAI VODADORA BHOPAL DELHI RAIPUR TOTAL APRIL 285824 92385 15438 770257 73320 1237224 MAY 437723 17251 84878 174635 0 714487 JUNE 821403 97693 3772 245651 56894 1225413 JULY 522521 257837 13620 409667 41299 1244944 TOTAL 2067471 465166 117708 1600210 171513 4422068 COMPARISON FOR 2005-06 & 2006-07 2005-06 2006-07 RS.IN LACS RS. IN LACS MUMBAI 2067471 3672316 20.7 36.7 VODADORA 465166 1395407 4.65 13.9 BHOPAL 117708 482211 1.18 4.82 DELHI 1600210 1601710 1.6 16 RAIPUR 171513 465849 1.72 4.66
  • 28 6.2.9 GRAPHICAL REPRESENTATION OF SALES FOR YEAR 2005-06 & 2006-07 SALES COMPARISON 2005-06 & 2006-07 20.7 4.65 1.18 16 1.72 36.7 13.9 4.82 16 4.66 0 5 10 15 20 25 30 35 40 M U M BAIVO D AD O R A BHO PAL D ELH I R AIPU R TERRITORIES RS.INLACS 2005-06 2006-07
  • 29 6.2.10 COMPARISON OF SALES FOR ALL THE TERRITORIES(Data as per annexure J & Table 2) SALES FOR ALL TERRITORIES TERRITORY 2005-06 2006-07 BNG 413321 772645 BOM 2067471 3672316 BPL 117708 482211 BRD 465166 1395407 CHD 406564 253326 CHN 206614 207790 CTR 50479 71340 DEL 1600210 1601710 DHD 27385 25500 GAU 190966 12160 HYD 425043 258697 JAI 50739 15980 KOL 575602 587123 LCK 292840 232993 NGP 78508 113402 RPR 171513 465849 TOTAL 7140129 10168449 TABLE 5 o Hence there is 42% increase in overall sales compared to last year total sales for four months. o The graph below shows the individual contribution of different territories towards total sales. o The five territories selected are contributing 75% of the total sales.
  • 31 6.3 PART C: MARKET SEGIMENTATION 6.3.1 BROAD SEGMENTS IDENTIFIED: (AS PER ANNEXURE K) o 35 segments were identified by considering last five years database. This is done to help the sales force to get the target market. 6.3.2 SEGMENTED COMPANIES FOR CEMENT: (AS PER ANNEXURE L) o The database for cement companies is collected by using last five year s database as well by using various trade magazines and internet. o The database is prepared as per the territories identified, so as to help the sales force to get the target market. 6.4 PART D: ADVERTIZING PLANNING 6.4.1 COMPARISON SHEET OF ADVERTIZING: (AS PER ANNEXURE M) o The sheet is prepared so as to allocate budget for advertising during the current financial year. o This will also help the company to allocate budget for various Trade shows organized across the country. 6.4.2 DEALER APPLICATION FORM: (AS PER ANNEXURE N) o The form contains all the information from marketing as well as financial perspective of the Channel partner. o The competitive information can also be known. o The financial status of the company can be assessed. 6.4.3 Co BRANDING AGREEMENT o Co - branding agreement between Motwane and kyoritsu so as to increase the product basket.
  • 32 7. FINDINGS 7.1 PART A: FORMAT FOR SALES FORCE o These formats have resulted into efficient monitoring of sales team across various territories. o This has resulted into better traceability of customer requirements. o Proper monthly planning can be done. o Visit per customer can be monitored. o Attendance and other HR records can be maintained. o Performance of the sales engineer can be monitored. o Expenses on the sales can be estimated. o Each and every offer can be traced till it is either received or lost.
  • 33 7.2 PART B: SALES FORECASTING AND ANALYSIS o Last year sales figure help to plan the future budgeting Product wise. o Also it helps to plan the production schedule and inventory management. o Target sheet for the channel partners can be prepared based on the last year s turnover. o It helps to plan the forecasting for current financial year. o The sales have increased compared to the budgeted figure by 4.56% by compensating the Delhi performance, which has not achieved the target. o If Delhi is not considered then the increase in sales as compared to budgeted figure for four territories is 34.65%. o Where there is no sales engineer the actual sales is less then the budgeted. o Also the sales compared to the last year turnover have increased by 71.93% for the four months. o Due to better planning and involvement of sales force the overall sales have increased by 42% during the current financial year. o The sales force at five selected territories has contributed to 74% of the total sales of the current financial year.
  • 34 7.3 PART C: MARKET SEGMENTATION o The segmentation is helping the sales force to save time in finding the target market. o Also the focus is concentrated on the selected segments in the initial stage of sales call. 7.4 PART D: ADVERTIZING PLANNING o The advertising planning is helping to find the economical and most preferred magazine for various types of products. o Like insulation testor is mostly used by Electrical Contractors hence the advertisement should be placed in the Indian Electrical contractor and Trader magazine. o Hence helps to budget the expenses properly.
  • 35 8. LIMITATIONS: - 1. The study is limited to only 16 territories. 2. Five sales Engineers have been selected to analyze the data. 3. The segmentation is done based on the previous data available. 4. The buying behavior of the consumer has not been taken into the consideration. 5. The cost head has not been considered while analyzing the report. 6. Previous years advertising and promotional expenses have not been considered. 7. The training programme of Sales Engineer has not been considered. 8. While segmenting data was collected for only two major segments as against 35 segments identified. 9. The effect of after sales service on the sales turnover has not been taken into account.
  • 36 9. CONCLUSIONS: - o The sales turnover of the company has increased by 71.93% just by employing five sales engineers at different territories as compared to 16 territories identified. o The segmentation is helping to boost the overall sales by 4.56% as compared to the budgeted figure (Only Five territories considered). o The overall sales have increased (including territories where Engineers are not placed) by 42% compared to last year s sales for four months. o The company is also successful to tie up with a Japanese company to Co-brand his product. o Hence the overall sales monitoring has resulted into the increase of sales and better monitoring of Channel partners.
  • 37 10. RECOMMENDATIONS o The company should conduct a market survey so as to know the market share of the company and the competitors. o The company has products like AMR which is a niche segment and not many competitors are available in the market. Hence company should focus to increase the sales. o The company is facing various problems on the service front like delayed service, delayed response to the customer on the service issues. Hence there is need to employ service engineers across the 16 territories identified. o The DSR monitoring process takes lot of time for the sales engineer and also for the head office to manually enter the details. Hence web portals should be developed so that the DSR, purchase orders from the channel partners are directly received in to the Database. o Also the training aspect is not taken into the report. The sales engineers are facing problems due to lack of training on the various products. Hence proper training should be provided to the engineers. o The forecasting is based on just judgment and therefore company should use scientific methods of forecasting. o The channel partners should be increased so as to make easy availability of product to remote customers. o The company should also use scientific methods of purchasing like ABC analysis so as to reduce cost associated with it. o The supply chain management should be improved so as to make quick delivery to the customer. o Technical colleges are yet another segments where the product requirement is there and various scholarships and technical seminars should be organized so as to build future sales. o The company should also help some organization or schools with free equipments as a part of Corporate Social Responsibility.
  • 38 o The sales promotion in the form of free gifts or in the form extended warranty should be given to the customer so as to increase the sales.
  • 39 11. BIBLIOGRAPHY 1. C.K. kothari, Research methodology , Methods and Techniques; New Age International Publishers; Second Edition; Page 1-2. 2. Rajan Saxena; Marketing management ; TATA McGRAW HILL; Second Edition; Page 85- 113, 165-181, 228,337-388. 3. Philip Kotler & Kevin Lane Keller; Marketing Management ; Pearson Prentice Hall; 12e; Page 96-98, 436-438. 4. Motwane manufacturing Company Pvt. Ltd., Quality System Manual ; Page 14-15. 5. 6. 7.
  • 40 12. ABBREVIATIONS AMR Automatic Meter Reading AC Alternating Current BIS Bureau of Indian Standards DC Direct Current DCU Data Concentrator Unit DGQA Directorate General Of Quality Assurance DSIR Department of Scientific & Industrial Research ERTL Electronics Regional Test laboratory GSM Global System for Mobile ISO International Organization for Standardization LCD Liquid Crystal Display LED Light Emitting Diode MHA Ministry of Home Affairs NPL National Physical Laboratory PSTN Public Switched Telephone Network OEM Original Equipment Manufacturer R.F. Radio Frequency SEB s State Electricity Boards TRMS True Root Mean Square
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