Sunday, August 14, 2011

illustration: Sales operational strategy and tactics

“Experts in war depend especially on the rules of opportunity and expediency. Therefore a skilled commander seeks victory from the situation and does not demand it of his subordinatesThe Art of War

Prudence is a virtue. "Anything that can go wrong will go wrong". Murphy’s Law. Prepare for contingencies.

The victorious situation is the product of the skillful commander’s creative imaginationThe Art of War


Illustration SALES STRATEGY:


NorMin Sales Target       :  10,000 units

Sales Strategy            :  of 10,000 sales target we are working on 15,500, a 50% buffer sales to ensure target

Volume per channel type: focus on three channels

10 Supermarket                                6000 units
 100Gen. Trade                                6000 units
50 Horecade                                  3000 units           

Volume assignment per Sales Exec: focus on account capacity per historical sales

SE CDO                                         4,000
SE Iligan                                      4,000
SE  Bukidnon                                   4,000
SE Institutional Accounts                      3,000    

Coverage: F4, Visit accounts once a week to maximize coverage and minimize OOS

Sell In Schedule: Volume must be 70% achieves by mid month

Wk 1      20%
Wk 2      50%
Wk 3      20%
Wk 4      10%

Contingency Plan: additional sales from NPI,  consumer loading, 100 new accounts

New Product Introduction           1,000 units
60 New Accounts                    1,000 units
Trade Promotion 10+1               1,000 units

In case 70% is not hit by mid month, 10+1 Trade Promo and NPI will be launched
Accounts opening drive will be executed commencing day 1.
Focus sell- in on fast moving products. Sell in, sell out program.
Manage execution in the field. Attitude and discipline must be strictly observed.

Illustration sales tactics:
1. Early morning call in the palengke to corner the cash of wholesalers. Cigarette companies are masters of this tactic. 
2. Sell-in of buffer stock a week before pay-day to catch the Pay Day shopping. In fat moving consumer goods, particularly modern trade, pay day week end is anticipated and exploited.
3. Positioning of freezers beside check out counters, cashier and entrance is an effective tactic in ice cream selling. 
4. Motorcycle booking operation has doubled the marching rates of Sales Executive in tropical countries. Selecta made use of this type of operation with such decisive blow against nestle. 
5. Special selling during fiesta in nearby barrios and municipalities. It is a consumer behavior of Filipino’s to spend during fiesta. 
6. Wholesale trading terms to motivate volume purchase of the business market. 
7. Placement is a sales tactic used in consumer goods industry. Products must be available for consumers to buy.  Channels where the target consumer is selected and contracted for retail as school canteens for milo dispenser.
8. Special Sales Teams are assembled to attend to the special needs of some strategic accounts as Key Accounts Team to spend quality time with supermarkets. 
9. Exclusivity contract to lock out competitors. Pepsi has been using this tactic against Coke’s strong distribution and brand campaign. 
10.Stock pressure is a tactics used to corner space and cash allocation of accounts. Upon negotiating huge amounts of inventory, the account is suddenly obliged to manage a big inventory preventing other competitors to penetrate.
11. Stock Display is a very practical sales tactic that makes brands visible in the stores; the brand being seen by the consumer, consumer is motivated to buy.
12. Relationship is a very effective sales tactic in the Philippines. Filipinos are always ready to lend a friend, a neighbor, a hand in business. Especially those they have utang na loob.
13. Coverage is a basic sales process that always results to sales. A visit to a client is the most basic discipline in sales. A sales executive is able to assess better the needs of the market if he visits his accounts regularly.
14. Philippine selling is highly depended on the seasons and traditional festivities. Filipinos love to celebrate. Christmas, fiesta, undas, and fiesta have big impact on sales.
15. Kasal, binyag, lamay, kasal, anniversary of clients are occasions to attend. It will make big mileage in terms of relations and sales opportunities if sales people participate in these special occasions.

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