L'Oréal uses various techniques to forecast sales, including analyzing schemes, seasonal effects, current and factory stock levels, and sales data. Forecasting is done using software like ARS and Suvidha. Sales force size is determined based on workload and affordability and is aligned with yearly sales forecasts. Quotas are set using a sales volume method to incentivize distributors and retailers. The sales organization structure is geographical with national, regional, and area sales heads. Territories are designed based on factors like prospects, past sales data, and outlet capacity. L'Oréal motivates employees through financial compensation including ownership programs and non-financial benefits like flexible work, health programs, and engagement initiatives.

1. SMBD
Workshop Based
Company
Analysis
Presented By:
Group : 5
Niharika Srivastava | Shristi |
Debanjali Mazumdar | Aayushi Gupta |
Nitin Singh | Paras Jain |
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2. About L'Oréal
L'Oréal is expertise in the service of
women and men worldwide,
meeting the infinite diversity of
their beauty desires.
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Company Contact Person:
Arvind Sukhija
L'Oréal.
National Sales Training Manager

3. Sales
Forecasting
Techniques
Factors Considered
for Sales Forecasting:
• Schemes
• Seasonal Effect
• Current Stock
• Sales Data
• Pipeline
• Factory Stocks
Software:
• ARS : Automatic
Replenishment
System
• Suvidha > DBMS
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4. Group
Analysis
Sales forecasting is dependent on what is
event is coming up. Sales forecasting is
done based on current stocks and stocks
in factory. Forecasting is also planned as
per the schemes and TVC pushed.
Software used is ARS and Suvidha which
helps in collating the data of distributor
channels
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5. Determining
Size of Sales
Force
SALES INCREASE TERRITORY
EXPANSION
NEW PRODUCT
LAUNCH
NEW RETAIL
OUTLETS

6. Sales Force
Forecasting & Hiring Methods
Yearly Planning of
Salesforce size of the
company
Department responsible
for the hiring process-
Human Resource
Method used-
1. Workload method
2. Affordability method
Workload required and
the time available for
selling

7. Group Analysis
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Salesforce size determination is interrelated with sales forecast.
Yearly plan is set for the salesforce hiring process.
The sales head with alignment with the HR plans and recruits potential
salesforce.
Methods employed to determine salesforce size varies with varying market
trends

8. Establishing
Sales Quota
The company employs the sales volume
quota method for establishing the Sales
Quota as loreal rewards sales reps for the
number of deals or qualified leads they
generate, regardless of deal size.
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9. Sales
Volume
Quota
The sales volume quota is applied on products of
L'Oréal is
Salons
E - Commerce
Hair Care Products
Face Care Products
Makeup
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10. Sales Activities That are Expected By The Executives
Meeting With Clients
Virtually Or During
Sales Visits
Demonstrating And
Presenting Products
Maintaining Accurate
Records
Reviewing Sales
Performance
Negotiating Contracts
And Packages
Working Towards
Monthly Or Annual
Targets.
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11. Responsible for Determining Sales Quota
National
Head
Regional Sales
Manager
Area Sales
Manager
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12. Group Analysis
According to us the loreal company goes for sales volume quota because it
widens distribution network by giving various incentives to distributers,
retailers, stockiest in order, not to lose self-space to competition.
And from sales representative point of view, they have a rewarding
environment and has been given many facilities to them like insurance
coverage and maternity leave and they have been encouraged to work by
giving freedom to schedule their timing due to which sales number gets high.
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13. Sales Organizational Structures
L'Oréal
structure
Geographical
Sales
Line Sales
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14. National
Sales
Head
Regional
Sales Head
Sales Manager
Assistant Sales Manager
Business Development
Business sales Representative
National Level
Global Level
Line Sales Structure
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15. Structure
Details
L’Oréal is a geographically dispersed company
that divides its labor into global Research and
Innovation centers that are strategically
spread in different countries.
There are four main geographical- Asia Zone,
Western Europe Zone, America’s Zone,
Eastern Europe and, MEA Zone.
The chain of command in L´Oréal is the
continuous line of authority that extends
from upper organizational to the lowest
levels.
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16. Group
Analysis
After analyzing we can say that
although there is clear upper-level
management and L'Oréal is a very huge
company there is centralization when
taking most important decisions.
All those decisions are based on
analyzing all the levels , their studies,
expertise opinion and decisions. So, we
can also say that it is decentralized.
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17. Designing
Sales
Territory Of
L'Oréal
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Sales coverage- identifying prospects in and targeting
them and defining number of territories
Understanding the total amount of sales to be and can be
performed in that territory according to their prospects
Determining MPV that is the size of the market for a
product at a particular time
Assigning salesforce, call time and frequency, generating
reports
Capacity of outlets
The sales territory designing is done based on statistical
data analysis and past records

18. Tier I/II/metro cities: They call for a circle shaped territory.
The salesman remains at the centre of the circle or near to
it. It makes possible optimization in frequency of calls.
Tier III: Wedge-shaped territories are suitable for urban as
well as non-urban areas. It starts from a thickly populated
urban centre.
Method of territory designing used by
L'Oréal

19. Group
Analysis
After analyzing, we understand that there are many
factors that leads to sales territory designing.
Not only understanding the area but also having
knowledge of the prospects in that area.
They use past statistical data, capacity of outlets and
MPV to understand the general trend going on in that
area and that determines how much to be done.
Then determining the target area is suitable for sales.
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20. Motivation
– Financial
and Non-
Financial
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21. Analysis
Financial Compensation
• Promoting People – Synergy between
enjoyment and engagement
• Employment Share Ownership Program-
Project involvement and success
• Inclusion Strategy – Equal opportunity to
all people , LGBTQA community and
people with disability with necessary
arrangement
• L'Oréal USA bags 1st company to receive
EDGE plus certification for Gender pay
Equity.
Share and Care Program –
i. Welfare Benefit
ii. 14 week paid maternity leaves
iii. 75 % claimable health Care cost
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22. Non-Financial
SMART work program – Liberty to work from
home with flexible working conditions.
Improving workplace with better workplace
experience
• Thrive Mental app
• 24/7 therapist and stress management
• Wheel of wellness 4 pillars: Health & Nutrition, Physical
Fitness, Emotional Wellness, Financial Wellness.
Employee Engagement
• Fusion session- Sharing recent internal opportunity and
expectation
Consumer Panel –Listening to voice of customer
through invited customer panel.
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23. Group Analysis
The company adopted the best
strategies and methods for the
improvement of workforce
performance.
Employers have responsibility to
make good relationships and
bonding with employees so they
will remain in an organization for
a long period of time and do their
work with perfection.
A sustainable healthy working
environment is very much
essential for the health and safety
of employees.
Provide employees perks,
benefits, flexibility, participation
in the decision-making process,
leaves and opportunity of being
heard plays a major role in
employee initiatives.
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24. Thank You!!
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