Power Buy Sales Management Strategies Thailand

2. Company Background
Under Central Retail Corporation Ltd.
1st Electronic Retail Store in Thailand (1996)
Over 60 Branches around Bangkok
Market leader in selling almost all electronics
Mission:
In the world of technology, choices are endless, taking into
account the best interests of the client.”
- Price, Quality, Selection, Service.

3. Company Analysis
Product
1. Mobile phones 2. Camera 3. Computer 4. Memory Media 5. Visuals
6. Audio 7. Home Appliances 8. Small Appliances 9. Offline
Distribution
- Hypermarkets & Department stores (64 Branches)
- 18 new branches by end of 2011
- Import: Thai Customs Department
- E-commerce & Call center
Automation
10. Music
11. Accessories
Price
- Good price guaranteed , range from 249-90,000 Baht
Promotion
- Budget 60 million Baht
- 30% discount
- Power Buy Expo 2011
- First Choice with Krung Sri
- Price Guarantee & Gift Vouchers

4. Competitor Sales Unit Analysis
Power Mall Amorn Electronics Centre

6. Chapter 2: Sales Force’s Strategic Role
Mission: to be the market leader & sell variety of electronics
Every department is involved in strategic & business planning
Objectives of sales department: high sales, build relations with customers
Incentives for high sales, different branches have different sales goals
Differentiation Strategy: promotions & after sale service (3 plus service)

7. Chapter 2: Sales Force’s Strategic Role
CRM: The 1 Card
Transactional Relationship
Credible & Reliable: Under CRC Group
Good in-store atmosphere & variety in
product offerings
Target Market: Males & Females with an
interest in electronics, B+ group,

8. Chapter 3: Territory Management
Customer contact: Database from 1 card used to SMS & send brochures
Call center & Facebook
Face to face selling is most effective
Through technology they are informed
first of latest products
Power Buy provides the latest electronics
They sell to profit/non-profit organizations, government at special discount
Timewaster for sales people: consumers take very long to make decisions

9. Chapter 4: Account Management
Customer feedback:
- E-mail
- Call center
- At the store itself
- Company website
- Facebook page
Promotion is the most important
factor that influences consumers
purchase decision
Supplier Selection:
- High quality products
- latest trends that customers want
- Purchase from many to give customers variety
- “Win-Win Situation”, suppliers get large orders, power buy get variety

10. Chapter 5: The Sales Presentation
Training Programs for sales people
- to be professional during sales presentation
- have product knowledge to be credible
Source of extra customer information
- Customer Survey: Focus groups & Face-to-face interviews
- Compare with past data to see changes in attitude
Tactics to close the deal
- Promotions: Special discounts
- “Deal/product is available only for
limited time period”

11. Chapter 6: Sales Force Structure
Sales Force Organization
- A manager (SGM) dives sales forces into departments
- Each department is called an operations team
- Operations team divided based on product classification
Power Buy uses specialization
Pro: ensures that the product line receives desired level of selling effort
Con: no knowledge about other products

12. Chapter 6: Sales Force Structure
No major problems due to current organizational structure
However sales person from one department may appear arrogant when
they can’t answer questions about a product of another department
Strategic Account Selection
- All accounts are treated equally
- All people are their potential customers
“Existing Sales Force”: Focus on closing the deal &
gaining revenue rather than build relationships

13. Chapter 6: Sales Force Structure
Product Consultants (PC) instead of independent Sales Agents
The functional area that the sales force interacts with the most is
engineering (merchandising) department
Marketing and Logistics (DC)
Departments act as support
systems

14. Chapter 7: Salesperson Recruiting & Selection
Hires based on geographic location of the branches of Power Buy
Recruitment Sources:
- websites like www.jobsdb.com
- Internet banner advertisements
- employee recommendations
- notice boards on construction
sites of new branches
- Job fairs
Salesperson Characteristics:
Good personality
Confident in talking to customers
- Service Minded
Neatly dressed
- Good grasp of Thai language
* All recruits go through a training program
Minimum requirement:
Bachelor’s Degree for COD, product department level

15. Chapter 7: Salesperson Recruiting & Selection
Lowest turnover rate among subsidiaries under CRC umbrella
- Trustworthy company
- Employees enjoy their jobs (new products)
- Financial aid
Provides aid to flood victims
Does not tolerate drug abuse or fraudulent behavior
Promotes ethical behavior and integrity

16. Chapter 8: Sales Force Development
Main On the objective Job Training of sales (OJT)
training is to give product knowledge
High - learn Product through knowledge experience makes with a sales individual person customers
look credible
- training sales person to become product expert
This helps to improve customer relations
Use field training for Operations team
Decentralized Training
- learn about specific products and are involved in sales
management

17. Chapter 8: Sales Force Development
Sales Volume to evaluate success of performance
Follows up on new sales, because sales force represents the company and
their bad behavior can ruin the image of the company

18. Chapter 9: Leading a Sales Force
The top management consists of some very good leaders
The leaders motivate the employees using “reward power”, commissions are
given based on sales
Friendly relations with employees
Take care of employees “Help Smile project”
Use “Selling leadership style”
The leaders have qualities like vision and empowerment
They act as role models, build trust & give genuine feedback and coaching

19. Chapter 9: Leading a Sales Force
Team Building:
- Categorize sales force into 3 groups
- AV group, Home Appliances, IT Products
- Each team is coached by a product manager
Sales Meetings:
- Sales & Marketing teams come together to brainstorm
- They discuss the meeting objectives and budget
Power Buy holds monthly and semi-annual
seminars to raise awareness of the policies
against sexual harassment & alcohol/drug
abuse
If found guilty a person’s employment is
terminated

20. Chapter 11: Sales Force Motivation
Motivate sales people through incentives:
Financial incentives:
- bonus
- commission
- increase in salary
- other monetary rewards based on individual
sales performance
Social incentives:
- promotion: higher position in sales department
- status and recognition through awards like best
employee of the year

21. Chapter 12: Compensating the Sales Force
Sales person of the year: gets all
expense paid trip with his/her family
abroad.
Bonuses and commission based on
sales performance and targets
Power Buy also adjusts commission
rates to boost sales of individual
products
Team Selling/ Project sales
- to sell to government parties and business sectors.
Operations Team/ Sales Force
- receives the most incentives when compared to any other department
because they contribute to the firms revenue.

22. Chapter 13: Sales Person Performance Evaluation
Quantitative Evaluation of Performance:
Sales person evaluated more on
performance (output) rather than
behavior(input)
- Solely based on sales targets achieved and accounts closed
- Sales figures are used to judge of sales targets have been achieved
Commissions bonuses and raises are
given based on sales performance
However good behavior (input) is
encouraged through positive feedback.
Career consultations and advice is
given to those who have good sales
performance but are behind the race in
the social aspects of the job.

23. Conclusion
Main CRM: The 1 Card which creates
loyalty
Differentiates through credit sales & after
sale services
Transactional relationship with customers
Customer feedback: E-mail, Call center,
Store, Company website Facebook
Two tactics to close the deal: Special offer
and limited time for product
Sales force/Operations Team is divided
into 3 product-specialized divisions

24. Conclusion
Has lowest turnover rate
“Help Smile Project”
Field & OTJ Training
Selling Leadership Style
Incentives based on output/sales

25. Recommendations
1.) Motivation Programs Based Effort-Performance Relationship Model
2.) Power Buy should also introduce behavior-based evaluation of sales force
3.) If benefits > cost hire Independent Sales Agents
4.) If benefits < cost then stop out sourcing and use internal salespersons
5.) Should consider going through accounts to determine who are the regular
buyers
6.) Focus on developing a long term transactional relationships
7.) CRC & Power Buy should collaborate to create special loyalty program that
gives the 1 card holders special customer experiential management