SM Technologies offers broadband services to corporate and home users. It aims for 40% sales growth in its Bangalore office. The sales force is not divided by the different corporate services offered, which could decrease selling prospects. Home users have a contractual sales force paid only by commission, likely leading to high churn. Training is provided but not customized internally. The distribution channel uses direct sales but could include industrial distributors for corporate customers. Promotion strategies do not focus on the domestic market. The document recommends reorganizing the sales force by service, reducing churn, developing promotional strategies, using distribution channels effectively, and focusing on customer retention.

1. SM Technologies Ltd. Developing Sales & Distribution Strategies

2. Case Background 1. SM Technologies offered broadband enabled services for corporate (business) and home (or domestic) users. Major competitors include Reliance Infocomm, Airtel, VSNL, BSNL, Hathway, Sify and Spectranet. Company targets 40% growth in sales and profits for the Bangalore office for 2004-2005.

3. Discussion on Existing Practices

4. Sales Organization Structure For the corporate customers, there are many different kinds of services offered. However, the sales force isn’t divided on the basis of such services. This is likely to lead to insufficient knowledge of different services among the sales representatives. The insufficient knowledge is likely to decrease the prospects of selling, This applies more to corporate customers.

5. Sales Strategy For home users, the company employed contractual sales force. The sales force was paid only through commission. This is likely to lead to high sales force churn Frequent replacement of sales force will reduce the efficiency and the performance. Despite the sales force getting trained by an institute, a customized training was not given internally in the company. Asst. Sales manager must also be trained in effective supervision since they are in direct contact with the salespersons. They can also identify the high potential customer segment and target on that business share.

6. Distribution Channel Currently using Direct Distribution-technically complex For the corporate they can include the industrial distributors in the sales channel who will be able to get a good idea of expected orders through spatial discrepancy-reduce distance(1 service outlet in 3km range) Temporal discrepancy-speeding up meeting requirements(locations have potential customers) The company is only selling through direct channels of company workforce The company should not use online selling and tele-marketing only for prospecting but also**** to make a sale Precaution should be taken that there is no channel conflict in the distribution channel.

7. Promotion There was no focussed strategy of promotion for the domestic customer market The company isn’t making any significant efforts to ensure that the products are taken into the consideration set of more and more consumers in the target market.

8. New Strategy & Tactics

9. Expand operations in the other Tier-I cities. Reorganize the sales force for corporate customers, service wise Ensure reduction of churn of sales force if any. Motivate the contractual sales force by offering benefits to top performers. Develop a focussed strategy of promotion for the domestic customer market Also focus on the after sales service Effectively use the distribution channel-reach out effectively to customers Customer Retention : Past client reactivation Value Sell