Sales planning and Operations Promotional Mix and Sales Presentation

(LO-3)

Prepared by:
MD. Ismail Hossain (id- 2012121010) Adnan Ahmed (id-2011421027) Nazia Akter (id- 2011202018) Muniar Rahman Rainum (id- 01-02-10106) MD. Saddam Hossain Soikat (id-2012121026)

Prepared to: Mr. Irfan Jahangir Faculty, Marketing, School of Business

Submission date: 09.03.2013

Task 5 (lo-3.1): Explain how sales strategies are developed in the line with corporate objective.
SF sweaters LTD started its operation in 1999 at Gazipur, Dhaka, Bangladesh. The management team employed by SF sweaters ltd has been involved in the ready-made apparel industry since the last decade. SF sweaters ltd employs over 1200 skilled workers & managerial staff. Our factory is approximately 125,000 sqft areas with all the modern facilities. The operation plant is built on our own land. We have all the major departments including marketing, planning, procurement, finance, and shipping. Our corporate head office is located in the capital city, Dhaka. Our production team is comprised of skilled labors who have been successfully contributing to SF sweater ltd As well as our countrys economy as a whole. Our company vision is to provide products and services of high consistent quality ensuring maximum value and satisfaction to our customers, thought effective utilization of time and adoption of superior design and appropriate technology. Sales Strategy When an order is placed by a buyer, the first task for the sales people is to give them an estimate for how much their order would cost to be processed. This would be based on many factors such as the type of yarn, the design of the product, accessories that are required for making the production, etc. The style is send to the sample house where the product is made to make a same to same sample. They weight is taken lastly to make the final price for the product. A profit charge is also applied to the product and 20% wastage is added to the product and finally the prices are given to the buyer. Finally, the buyer also comes with a price and an appointment is made on which the buyer wants to process the products. The final price may also come down or up based on the quantity of the production. After the order is

confirmed, a license or credit is placed to the company from which, SF Sweaters LTD orders the accessories and other elements that are required for this production. Finally, the sales manager has to keep a full check if everything is going fine.

Corporate objective of SF Sweaters LTD SF Sweaters LTD corporate objective is to provide products and services that are of unfailing top quality ensuring maximum value and satisfaction for our customers guaranteeing efficient utilization of time, adoption of superior design and latest technology. How SF Sweaters LTDs the sales strategy helps to develop the corporate objective SF Sweaters LTDs main work is to find orders. Without marketing or a sales team of their own, it would be very risky to do business because they can go off anytime if they dont find work and its very important for a firm like this to keep working throughout the year. Their corporate objective is to provide products and services that are of unfailing top quality ensuring maximum value and satisfactory for their customers. A survey is always processed after every order where they want a feedback from their buyers. They influence the buyers to point out what SF Sweaters LTD has done wrong and how can they improve their services. The buyers are all happy when they eventually realize that how professional SF Sweaters LTD applies for their work starting from processing the order till the end of production. SF Sweaters LTD ends up developing a great relationship and eventually proceeding with more orders which SF Sweaters LTD can do or other works that can be done through SF Sweaters LTD in other garments.

Task 6 (lo-3.2): Explain the Importance of recruitment and selection procedures.

Importance of Recruitment and Selection

Recruitment is the process of identifying that the organization needs to employ someone up to the point at which application forms for the post have arrived at the organization. Selection then consists of the processes involved in choosing from applicants a suitable candidate to fill a post. Recruiting individuals to fill particular posts within a business can be done either internally by recruitment within the firm, or externally by recruiting people from outside.

The advantages of internal recruitment are that:

1. Considerable savings can be made. Individuals with inside knowledge of how a business operates will need shorter periods of training and time for 'fitting in'. 2. The organization is unlikely to be greatly 'disrupted' by someone who is used to working with others in the organization. 3. Internal promotion acts as an incentive to all staff to work harder within the organization. 4. From the firm's point of view, the strengths and weaknesses of

an insider will have been assessed. There is always a risk attached to employing an outsider who may only be a success 'on paper'.

Recruitment process:

External Recruitment:
External recruitment makes it possible to draw upon a wider range of talent, and provides the opportunity to bring new experience and ideas in to the business. Disadvantages are that it is more costly and the company may end up with someone who proves to be less effective in practice than they did on paper and in the interview situation.

There are a number of stages, which can be used to define and

set out the nature of particular jobs for recruitment purposes. Job analysis is the process of examining jobs in order to identify the

key requirements of each job. A number of important questions need to be explored: 1. the title of the job 2. To whom the employee is responsible 3. For whom the employee is responsible. 4. A simple description of the role and duties of the employee within the organization.

Job analysis is used in order to:

1. Choose employees either from the ranks of your existing staff or from the recruitment of new staff. 2. Set out the training requirements of a particular job. 3. Provide information which will help in decision making about the type of equipment and materials to be employed with the job. 4. Identify and profile the experiences of employees in their work tasks (information which can be used as evidence for staff development and promotion). 5. Identify areas of risk and danger at work. 6. Help in setting rates of pay for job tasks. Job analysis can be carried out by direct observation of employees at work, by finding out information from interviewing job holders, or by referring to documents such as training manuals. Information can be gleaned directly from the person carrying out a task and/or from their supervisory staff. Some large organizations specifically employ 'job analysts'. In most companies, however, job analysis is expected to be part of the general skills of a training or personnel officer.

Job Description:

A job description will set out how a particular employee will fit into the organization. It will therefore need to set out. A job description could be used as a job indicator for applicants for a job. Alternatively, it could be used as a guideline for an employee and/or his or her line manager as to his or her role and responsibility within the organization.

Job specification:
A job specification goes beyond a mere description - in addition, it highlights the mental and physical attributes required of the job holder. For example, a job specification for a trainee manager's post in a retail store included the following: 'Managers at all levels would be expected to show responsibility. The company is looking for people who are tough and talented. They should have a flair for business; know how to sell, and to work in a team.'

Recruitment procedures of SF Sweaters

There are two types of recruitment that are involved in the recruitment of SF Sweaters LTD. Since SF Sweaters is a manufacturing firm, its main task is to make productions as suppliers and send it to their buyers. The major employees that are recruited are labors. There are about 800 employees working down here. On the other hand, many office works are required to process this work. There are about 50 employees who are recognized as office employees. Recruitment for both of the type of employees are different. For instance, the office workers are based on qualifications and experience where as the production labors are recruited as long as they are over the age of sixteen. For the recruitment of the office workers, there are many processes which need to be followed.

There are around six departments. Every department has a top manager and the directors of the company are in charge of all the managers. The managers are in charge of how they would want to get their work done. All the top level managers have been with SF Sweaters for more than five years at least so they have a great knowledge of their work and who could be the right people for their work. The departments that are there are marketing, commercial, human resource management and production. There are many departments that are involved in the production team such as merchandising, store in charge, yarn in charge, production of 3gg, 5gg, 7gg and 12gg and sample in charge. The office workers are mainly involved in commercial, merchandising, production management and human resource management. This employees requires a graduation degree and a good knowledge of communication, language and management skills. Their recruitment is down by the directors and with the department heads. Whenever there is a vacancy, it is posted on various newspapers. A last day is mentioned on the newspaper as well a CV s are checked by the human resource manager mentioning if the requirements are achieved or not. They are in charge of deciding if the CV can go through or not. After that, the selected people are called in for an interview and the process can take up to three days. The directors and the department managers are there during the recruitment and many people are screened out in the recruitment process. The ones that makes in through are called in the next day for another interview. And finally, its confirmed in the next day if the person is recruited or not. The process of the production labors is completely different. Whenever there are vacancies, its announced in the gates of SF Sweaters LTD and also announced in a recruitment agency in Gazipur and almost anyone who wants to can join in. They need to have few

requirements which are that the employees need Notary Cards where SF Sweater can have security checks. Its easy for anyone to find work in Gazipur because the process is the same almost every other factories and Gazipur is filled with factories. Whenever an employee presents their CV to the Human Resource manager, they are given a date when they are called in for training. Even having experiences wont help employees escape this training. In the training, the employees are justified and employees who take very long time to learn how to learn the work arent recruited or recruited in easier work like in finishing.

Recruitment process of sales persons of SF Sweaters

The sales or marketing manager and the directors are in charge for the recruitment of the sales persons. The sales persons are required to consult buyers within Bangladesh and outside Bangladesh. Therefore, English is a must and languages like Chinese, French, German, etc are a plus point. Firstly, the CVs are screened in by the human resource management to see if the minimum requirements are met. Then they are processed to the managers who are in charge of calling and booking an appointment for the recruitment. In the interview, many points and skills are checked though different tests and questions. The qualified employees are called in the next day and SF Sweaters finally fix up a day when he or she may join in for their work.

Task 7 (lo-3.3): Evaluate the role of motivation, remuneration and training in sales management.

Organization and management structures OF SF Sweaters

Training plans of SF Sweaters

Training plays an important role in the success of SF Sweaters. Unfortunately, small businesses often cant afford to give staff time away from work to attend training during work hours. Similarly, business owners often find the available training is too unspecific and not appropriate to the individual needs of their business. The best return on your training investment will be achieved by identifying your companys training needs, taking a systematic approach to sourcing suitable training, and enrolling your employees on the right courses for the job. For training SF Sweaters follows these steps: Identify training needs Involve employees in training decisions Developing training plan Assessing training Next steps

Identify training needs

You should focus training efforts on areas where you can reap the biggest, fastest and easiest rewards. But before you can do this, you need to identify the skills gaps or training needs in your company and priorities them. Some training needs are obvious. SF Sweaters Answers the following questions to help identifying the training for employees might need: way? Do they receive customer complaints? Is part of team or business underperforming? Do they have a shortage of a particular set of skills, or a likely Is business experiencing problem or being held back in some

future skills shortage?

Involve employees in training decisions:

Once they have identified their business training needs, the next step is to ask their employees what relevant skills they want to improve through training. They may give some good ideas. Ask your employees what training they think would improve their productivity and how it will benefit your business.

Developing training plan:

Once they have identified their skill or knowledge gaps, the next step is to find the best form of training to achieve the results they want. Try to avoid finding training first, and then fitting this to their employees. For optimal results, try to match selected training option with the needs of business and the way employees learn best. They followed:

1. 2.
3.

In-house training Job shadowing Conferences, seminars, workshops and courses (Prothom Alo

trainings).

Assessing training:
They ask employees to review their training experience. Try to find out if the training is relevant to the job and appropriate to their level of expertise. Training assessment forms may help them discover more about the course and establish what worked and what didnt. Be aware that what your employee sees as a positive training experience might not necessarily be valuable to business. When employees complete any training, discuss how their learning will be put into action. This will help to ensure new skills are implemented.

Next Steps:

 Identify new things and skills for business needs and meet with their staff to develop a personal development and training plan for each employee. Allocate a budget for training.

Warning:
All managers and supervisors must buy-in to the concepts presented and be trained themselves. Without the support and understanding of management, training programs run the risk of having little or no benefit. Don't use training solely as a disciplinary action or when problems arise. One of the goals of training is to prevent problems before they occur.

Role of Leaders of SF Sweaters

1. Required at all levels- Leadership is a function which is important at all levels. In the top level, it is important for getting co-operation in formulation of plans and policies. 2. Representative of the organization- A leader, i.e., a manager is said to be the representative of the enterprise. He has to represent the concern at seminars, conferences, general meetings, etc. 3. Integrates and reconciles the personal goals with organizational goals- A leader through leadership traits helps in integrating the personal goals of the employees with the organizational goals. He tries to co-ordinate the efforts of people towards a common purpose and thereby achieves objectives. 4. As a friend and guide- A leader must possess the three dimensional traits in him. He can be a friend by sharing the feelings, opinions and desires with the employees. 5. Initiates action- Leader is a person who starts the work by communicating the policies and plans to the subordinates from where the work actually starts. 6. Motivation- A leader proves to be playing an incentive role in the concerns working. He motivates the employees with economic and non-economic rewards and thereby gets the work from the subordinates. 7. Providing guidance- A leader has to not only supervise but also play a guiding role for the subordinates. Guidance here means instructing the subordinates the way they have to perform their work effectively and efficiently. 8. Creating confidence- Confidence is an important factor which can be achieved through expressing the work efforts to the subordinates, explaining them clearly their role and giving them guidelines to achieve the goals effectively. It is also important to hear the employees with regards to their complaints and problems.

9. Builds work environment- Management is getting things done from people. An efficient work environment helps in sound and stable growth. Therefore, human relations should be kept into mind by a leader. He should have personal contacts with employees and should listen to their problems and solve them. He should treat employees on humanitarian terms. 10. Co-ordination- Co-ordination can be achieved through reconciling personal interests with organizational goals. This synchronization can be achieved through proper and effective coordination which should be primary motive of a leader.

Motivational Factors of SF Sweaters

There are many type of incentives given to the employees of SF Sweaters LTD. There is always Eid bonus for almost every employee. There is monthly bonus for production employees. This is only available for production employees. The main work for the employees who work on 3gg, 5gg, 7gg and 12gg are they are paid according to their production. So, the employee who can produce more products gets added bonus for their payments. Emergency Holidays. Sick leave. Personal loans. Heath and safety. Life insurance Facility. Transport facility. Food facility.

Two-factor theory
The two-factor theory (also known as Herzberg's motivation-hygiene theory and dual-factor theory) states that there are certain factors in the workplace that cause job satisfaction, while a separate set of

factors cause dissatisfaction. It was developed by Frederick Herzberg, a psychologist, who theorized that job satisfaction and job dissatisfaction act independently of each other. The two-factor, or motivation-hygiene theory, developed from data collected by Herzberg from interviews with a large number of engineers and accountants in the Pittsburgh area. According to Herzberg:

The job should have sufficient challenge to utilize the full ability of the employee. Employees who demonstrate increasing levels of ability should be given increasing levels of responsibility. If a job cannot be designed to use an employee's full abilities, then the firm should consider automating the task or replacing the employee with one who has a lower level of skill. If a person cannot be fully utilized, then there will be a motivation problem.

Hygiene Factors of SF Sweaters:

In the job, all workers have given salaries, good working environment, and security. These are the hygiene factors and condition of work. Without these no one will work for the organization. If all these are there, workers will not be dissatisfied or will not be motivated. If these things are missing the worker will be dissatisfied and demotivated.

Motivator Factors:
The extra things are given to the workers are the motivator factors. As example, 1. There is always Eid bonus for almost every employee. 2. There is monthly bonus for production employees. This is only available for production employees. 3. The main work for the employees who work on 3gg, 5gg, 7gg and 12gg are they are paid according to their production. So, the employee who can produce more products gets added bonus for their payments. 4. Emergency Holidays. 5. Sick leave. 6. Personal loans. 7. Heath and safety. 8. Life insurance Facility. 9. Transport facility. 10. Food facility. With these incentives, the workers are given extra facilities out of their job description. The workers get motivated by these extra incentives and these are the motivator factors.

Limitation of Two-factor theory:

The two factor theory is not free from limitations: 1. The two-factor theory overlooks situational variables.

2. Herzberg assumed a correlation between satisfaction and productivity. But the research conducted by Herzberg stressed upon satisfaction and ignored productivity. 3. The theorys reliability is uncertain. Analysis has to be made by the raters. The raters may spoil the findings by analyzing same response in different manner. 4. No comprehensive measure of satisfaction was used. An employee may find his job acceptable despite the fact that he may hate/object part of his job. 5. The two factor theory is not free from bias as it is based on the natural reaction of employees when they are enquired the sources of satisfaction and dissatisfaction at work. They will blame dissatisfaction on the external factors such as salary structure, company policies and peer relationship. Also, the employees will give credit to themselves for the satisfaction factor at work. 6. The theory ignores blue-collar workers. Despite these limitations, Herzbergs Two-Factor theory is acceptable broadly.

Implications of Two-Factor Theory

The Two-Factor theory implies that the managers must stress upon guaranteeing the adequacy of the hygiene factors to avoid employee dissatisfaction. Also, the managers must make sure that the work is stimulating and rewarding so that the employees are motivated to work and perform harder and better. This theory emphasize upon jobenrichment so as to motivate the employees. The job must utilize the employees skills and competencies to the maximum. Focusing on the motivational factors can improve work-quality.

Task 8 (l o-3.4): explain how sales management organized sales activities and control sales outputs.
Every organization had to maintain their every task. So to manage sell task every organization had to do some special thing. S.F Sweaters/cardigans to maintain their sail management activities they are doing sales budget and sales forecasting. This are explained bellow. Sales budget: A sales budget is a necessary component in every company's corporate backbone in order to predict accurate sales forecast and profitability. Having an effective financial plan in place helps management decide on inventory, pricing and allows them to set future goals to promote profitability.

Sales budget of S.F Sweaters/cardigans LTD Quarter 1 Budgeted sales 100,000 300,000 500,000 800,000 1,700,000 2 3 4 year

selling average price(per cardigan) Total

250

250

250

250

250

25,000, 000

75,000, 000

125,000, 000

200,000, 000

425,000, 000

% of sales collected in the period of the sale % of sales collected in the period of after the sale

60%

40%

Quarter 1 1) Accounts receivable begging balanced 2) 1st quarter sales 3) 2nd quarter sales 4) 3rd quarter sales 5) 4th quarter sales 120,000, 000 75,000,0 00 50,000,0 00 45,000,0 00 30,000,0 00 15,000,0 00 10,000,0 00 10,000,0 00 2 3 4

year 10,000,00 0

25,000,00 0 75,000,00 0 125,000,0 00 120,000,0 00

6) Total cash collection

25,000,0 00

55,000,0 00

105,000, 000

170,000, 355,000,0 000 00

Here I have prepared an assumed sales budget of S.F Sweaters/cardigans. They are thinking that they will be able to sale their product according to the budget with the average price. And they think that they will receive 60% at the sale time and 40% after the sales period. Sales forecasting: Sales forecasting depends heavily on estimates. Using evidence, such as past results, expectations and other sales, you can form a basis for your evidence. When doing a sales forecast, it is usually best to err on the side of caution. Forecasting higher than you are capable of throws off your forecast and can be discouraging when you do not meet your expectations. Sales forecasting can be very liquid, so you can change forecasts if results start to differ from your initial expectations. We can do our sales forecasting for three time periods and this are 1) Short term forecasting (less than 1 year): which forecasting are prepare for a 1 years or less then 1 year this are called short term forecasting. 2) Medium term forecasting (1 to 3 years): which forecasting are prepare for 1 year or less then 3 years this are called medium term forecasting. 3) Long term forecasting (3 years and above) which forecasting are prepare for above than 3 years this are called long term forecasting. SF Sweaters LTD they used to export their Sweaters/cardigans in many country of the world. But as we know that Sweaters/cardigans these are the seasonal dress. Each and every time they did not get market value. Thats way under processing this point they usually do medium

term forecasting just because of that they can change their policy and design with time and market demand.

Task 9(L o- 3.5): Explain the use of database in effective sales management.
As we know we are living at the age of science. At that time most of the organization in the world they are using different kinds of database system. To record their all sales related activities. There is several kind of database. This are Oracle, Microsoft Access, IBM DB2, FileMaker Pro. By using this database system any organization can record their any database of their firm. There are lots of advantages if using database management system. Advantages: By using database system any organization system they can keep their record for a long time as long as they want. It can be update any time. It can be changed any time. No chance to committed any mistake. It's save time. Most secure process.

 There is lots of data protection act avail able to protect data. The same information can be made available to different users. This reduces data redundancy, or in other words, the need to repeat the same data over and over again. Minimizing redundancy can therefore significantly reduce the cost of storing information on hard drives and other storage devices. In contrast, data fields are commonly repeated in multiple files when a file management system is used. Using a database management system, file formats and system programs are standardized. This makes the data files easier to maintain because the same rules and guidelines apply across all types of data. The level of consistency across files and programs also makes it easier to manage data when multiple programmers are involved. Data is easier to access and manipulate with a DBMS than without it. In most cases, DBMSs also reduce the reliance of individual users on computer specialists to meet their data needs. Our cardigan factory they had to deal every day. They had to buy wool, spin, and different kind of raw materials to their business purpose. To avoid any kind of mistake, fraud they should use different kind of use data management system. But they are not using any data management system. Just because of that they are facing lots of problem this are. Quit poor process. 75% chance to committed mistake. Lengthy process. Some time it is boring. Any body can commit fraud. They are lagging behind from the present world.

These are not enough there are lots of problem to avoid a database system. So from my point of view S.F Sweaters/cardigans they should follow at lest any one database which is related or match with their organization. Than they will able to avoid their unwanted problem.

Reference:
http://www.exforsys.com/career-center/processmanagement/recruitment-process-and-its-importance.html http://businesscasestudies.co.uk/cummins/using-effective-recruitmentto-retain-competitive-advantage/the-importance-of-recruitmentandselection.html#axzz2MxH2vmSa http://www.streetdirectory.com/travel_guide/183825/human_resources/ how_important_is_a_good_recruitment_process.html http://smallbusiness.chron.com/developing-effective-employeetraining-program-1181.html

http://www.managementstudyguide.com/role_of_a_leader.htm http://www.managementstudyguide.com/importance_of_leadersh ip.htm http://en.wikipedia.org/wiki/Two-factor_theory http://www.netmba.com/mgmt/ob/motivation/herzberg/ http://www.managementstudyguide.com/herzbergs-theorymotivation.htm Definition of "Sales Budget" | eHow.com http://www.ehow.com/info_7742672_definition-salesbudget.html#ixzz2N17kyh3J How to Calculate Sales Forecasting | eHow.com http://www.ehow.com/how_6900522_calculate-salesforecasting.html#ixzz2N18nro16