DISSERTATION REPORT

PROJECT TITLE

A STUDY ON THE TRAINING ASPECTS OF THE SALES PEOPLE

IN THE RETAIL INDUSTRY

This dissertation report is being submitted as part of the requirements of the MBA
Program of Bangalore University. The study has been undertaken by:

CHAITANYA.M

Reg.No-03VWCM6018

With the guidance and support of

Prof.Krishna K. Havaldar
Faculty
Alliance Business Academy

Alliance Business Academy

19th cross, 7th main,
N.S.Palya, BTM 2nd Stage,
Bangalore – 560076
2003 – 2005

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 GUIDE CERTICATE

This is to certify that Mr.CHAITANYA.M of our institute has completed his

dissertation in RETAIL INDUSTRY and carried out a study on THE TRAINING
ASPECTS OF SALES PEOPLE IN RETAIL INDUSTRY, under my guidance.

Date:
Place: Bangalore

Prof.Krishna K. Havaldar
Faculty.
Alliance Business Academy.

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 DECLARATION

I CHAITANYA.M, studying in Alliance Business Academy, Bangalore do hereby

declare that this Dissertation Report relating to RETAIL INDUSTRY and the topic
STUDY ON THE TRAINING ASPECTS OF SALES PEOPLE IN THE RETAIL
INDUSTRY has been prepared by me after doing a research in this industry, as
part of the requirements of the MBA Program of Bangalore University (Batch of
2003 – 2005). My guide for the training has been Prof.Krishna K. Havaldar.

I further declare that this Dissertation Report has not been submitted earlier to any
other University or Institute for the award of any Degree or Diploma.

Date:
Place: Bangalore

CHAITANYA.M
Reg.No-03VWCM6018.

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 ACKNOWLEDGEMENT

I wish to express my deep sense of gratitude to Prof.Sudhir Angur, President,

Alliance Business Academy and Dr. B V. Krishnamurthy, Director and Executive
Vice President for providing me the opportunity to do my Dissertation, which
provided me with lot of practical experience of the industry.

I wish to record my deep sense of gratitude to project my guide

Prof.Krishna K. Havaldar for his kind support, advice and encouragement from the
beginning of the project till the completion of the project report.

I would also like to acknowledge all those respondents who have lend their precious
time without which this dissertation work would not have been successful.

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 CHAPTERS PAGE-NO
1) INTRODUCTION 1

2) DESIGN OF THE STUDY 4

3) PROFILE OF THE RESPONDENTS 7

4) ANALYSIS 34

5) FINDING, CONLUSION AND SUGGESTIONS 58

ANNEXURE

BIBLIOGRAPHY

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Serial Description Table no Graph Page no
No no
1 Importance of training 1 1 43
2 Assessment of training needs 2 2 44
3 Number of sales people in Banglore 3 3 45
4 Number of sales people in India 4 4 46
5 Frequency of conducting the training 5 5 47
programme
6 Budget for training 6 6 48
7 Aims and objectives of training 7 7 49
8 Methods used for training 8 8 50
9 Place of training 9 9 51
10 Why train sales force 10 10 52
11 The trainer 11 11 53
12 Product or service 12 12 54
13 Contents of the training 13 13 55
14 Training aids used 14 14 56
15 Instructional methods 15 15 57
16 Effectiveness of the training 16 16 58
17 Frequency of the training programme 17 17 59
18 Suggestions by the sales force 18 18 60
19 Training needs 19 19 61
20 Experience of sales people 20 20 62
21 Qualification of sales force 21 21 63
22 Income of sales people 22 22 64
23 Commission and incentives 23 23 65

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 EXECUTIVE SUMMARY

This report is the outcome of my learning during the research that I have done on the
training needs of the sales people in the retail industry, Bangalore, as part of my
dessertation. This report gives a clear view of the retail sector, and the training
facilities provided to the sales force of retail industry. The report gives a view of the
industry and its activities.

India's retail sector appears backward not only by the standards of industrialized
countries but also in comparison with several other emerging markets in Asia and
elsewhere. There are only 14 companies that run department stores and only two with
hypermarkets. While the number of businesses operating supermarkets is higher (385
in 2003), most of these had only one outlet. The number of companies with
supermarket chains was less than 10.
However, the retail market is growing, not only in terms of numbers but also in terms
of stature, image and class. It is interesting to know that in a modern city like Mumbai,
which already had relatively good standards, the retail industry has moved to an even
higher level.

Customers are constantly changing and their expectations keep rising. Today Indians
have become world class consumers who demand world class service.
Regular update of skills, training, development and technology (bearing in mind the
necessity of keeping the human element in place because technology in itself, is cold,
impersonal and not at all customer friendly) will ensure that brand marketers are able
to keep pace in a dynamic world.

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The market survey was conducted to know what kind of training is currently provided
by the retail companies. Almost all kinds of retail outlets were covered under this
research like the retail outlets of big brands of sports wear, clothing showrooms, food
retailers of all sizes. There were different numbers of sales people working in different
kinds of retail companies. All of them were provided with various training and this
study was to identify those training details in this industry.

The sampling method used was judgmental and convenience sampling.

In retail industry which is in boom from past one decade there is a drastic change in
the way the business is run. Now there are lots of major players in this industry from
small to big. The retail business has become more organized and customer oriented.
So the people in this industry are also changing with a more professional outlook with
more knowledge and skills to impress the consumers and make good volume of sales at
the end of the day. According to the requirements the sales people are to be trained and
this study was conducted to access the effectiveness of the training being given to the
sales force at present. The study came out with the findings that there is a good
improvement in fulfilling the training needs of sales force in retail industry in
Banglore. Some more improvements are needed which are specified in the
interpretation and suggestions.

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INTRODUCTION:

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This research is basically done to find out the training needs of the sales people
in the retail industry and how they are being fulfilled. The retail industry in our
country is at boom and getting organized day by day, the demands of customers
are not just great products but also great shopping experience and to make this
possible a retail outlet should have well trained sales people. This study is made
to know how well the sales people of retail industry in Banglore are trained to
meet the customer expectations and global standards.

The retail sales people demonstrate how items work and explain details of items
to customers; they give information about various models, colors, and brands of
an item. Sometimes they give special information about very expensive or
complex items. They help customers to find items in the store, they try to
convince customers to buy those items. Retail sales people compute the amount
of the total sale and received cash, cheque or credit card payments. Sales
people also handle returns or exchanges of items.

The above mentioned are the very basic and important duties of sales people
and they require great skills and knowledge to perform well. And this high level
performance can only be seen if the sales people are provided with training as
and when required.

Retailers are increasingly stressing the importance of providing courteous and

efficient service in order to remain competitive. The direct link between the
customers and the company is the sales people who are expected to provide this
courteous and efficient service to the customers. Sales people are periodically
given training to update and refine their skills for providing the best customers.

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A sales persons gain experience and seniority; they usually move to positions of
greater responsibility and may be given their choice of departments. This often
means moving to areas with potentially higher earnings and commissions. The
highest earnings potential is usually found in big-ticket items. This type of
positions often requires the most knowledge of the product and the highest talent
for persuasion. So training is the most important aspect in recent trend which
increases the potential of sales people to meet the organizational and personal
objectives

The retail industry in Banglore has changed its face and approach. Sales people
working in this industry play major role in handling the customers effectively. This
study is done to evaluate the training system used by the retail industry in
Banglore. And also to understand training aspects which keeps the sales force of
retain industry fit and ready to face any kind of challenges, particularly due to
increasing domestic and international competition.

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12
DESIGN OF THE STUDY:

Problem statement:
The retail industry in Banglore has changed its face and approach. From
small outlets to big showrooms and departmental stores, every retailer is giving
their business a new look. Sales people working here play a major role by
handling the customers effectively. Customers are of various types and to handle
them and their queries, sales people should be having good skills and
knowledge. This study is to understand the training aspects which keep the sales
force of retail industry fit and ready to face any kind of challenges, particularly
due to increasing domestic and international competition.

Objectives:
1. To understand the training needs of the sales people in the retail industry
in Banglore.
2. To evaluate the training system used by the retail industry in Banglore.
3. To suggest improvements to the existing training programmes conducted
by retail industry.

Research methodology:
Sources of data: primary and secondary.
Primary data is collected by using descriptive research method from retail outlets
of all types.
Secondary data is collected from the internet, journals and news paper.

Sampling method:
Non probabilistic sampling scheme by using convenience and judgment sampling
technique.

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Sampling size:
70

Sampling unit:
Retail outlets of all types.

Method of contact:
personal interviews/contacts were carried out for the retail outlets.

Research Instrument:
Structured questionnaire used to collect the primary data.

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15
PROFELE OF THE RESPONDENTS:

• Respondents were all types of retailers, in which again the sales

managers, the outlet owners and the sales people were asked the
questions.
• These retail outlets were from all over the Banglore city.
• These retailers were into all kind businesses like FMCG, durable goods
and others.
• There were no geographical limitation (Banglore) while selection of the
retail outlets.
• All the respondents were individuals and no group responses were
collected.

INDUSTRY PROFILE:

Whether selling shoes, computer equipment, or automobiles, retail salespersons

assist customers in finding what they are looking for and try to interest them in
buying the merchandise. They describe a product’s features, demonstrate its
use, or show various models and colors. For some sales jobs, particularly those
selling expensive and complex items, retail salespersons need special
knowledge or skills. For example, salespersons who sell automobiles must be
able to explain to customers the features of various models, the meaning of
manufacturers’ specifications, and the types of options and financing available.

Consumers spend millions of dollars every day on merchandise and often form
their impressions of a store by evaluating its sales force. Therefore, retailers are
increasingly stressing the importance of providing courteous and efficient service
in order to remain competitive. When a customer wants an item that is not on the
sales floor, for example, the salesperson may check the stockroom, place a
special order, or call another store to locate the item.

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In addition to selling, most retail salespersons, especially those who work in
department and apparel stores, make out sales checks; receive cash, check, and
charge payments; bag or package purchases; and give change and receipts.
Depending on the hours they work, retail salespersons may have to open or
close cash registers. This may include counting the money; separating charge
slips, coupons, and exchange vouchers; and making deposits at the cash office.
Salespersons are often held responsible for the contents of their registers, and
repeated shortages are cause for dismissal in many organizations.

Salespersons may also handle returns and exchanges of merchandise, wrap

gifts, and keep their work areas neat. In addition, they may help stock shelves or
racks, arrange for mailing or delivery of purchases, mark price tags, take
inventory, and prepare displays.

WORKING CONDITIONS:

Most salespersons in retail trade work in clean, comfortable, well-lighted stores.

However, they often stand for long periods and may need supervisory approval
to leave the sales floor.

This job can be rewarding for those who enjoy working with people. Patience and
courtesy are required, especially when the work is repetitious and the customers
demanding.

EMPLOYEMENT:

The sales people worked in stores ranging from small specialty shops employing
a few workers, to giant department stores with hundreds of salespersons. In
addition, some were self-employed representatives of direct sales companies
and mail-order houses. The largest employers of retail salespersons are
department stores, clothing and accessories stores, furniture and home
furnishing stores, and motor vehicle dealers.

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This occupation offers many opportunities for part-time work and is especially
appealing to students, retirees, and others looking to supplement their income.
However, most of those selling "big ticket" items, such as cars, furniture, and
electronic equipment, work full time and have substantial experience.

EDUCATION AND TRAINING:

There usually are no formal education requirements for this type of work,
although a high school diploma or equivalent is increasingly preferred. Employers
look for people who enjoy working with others and have the tact and patience to
deal with difficult customers. Among other desirable characteristics are an
interest in sales work, a neat appearance, and the ability to communicate clearly
and effectively. The ability to speak more than one language may be helpful for
employment in stores in communities where people from various cultures tend to
live and shop. Before hiring a salesperson, some employers may conduct a
background check, especially for a job selling high-priced items.

In most small stores, an experienced employee, or the proprietor, instructs

newly-hired sales personnel in making out sales checks and operating cash
registers. In large stores, training programs are more formal and usually
conducted over several days. Topics usually discussed are customer service,
security, the store’s policies and procedures, and how to work a cash register.
Depending on the type of product they are selling, they may be given additional
specialized training by manufacturers’ representatives. For example, those
working in cosmetics receive instruction on the types of products available and
for whom the cosmetics would be most beneficial. Likewise, salespersons
employed by motor vehicle dealers may be required to participate in training
programs designed to provide information on the technical details of standard
and optional equipment available on new models. Because providing the best
service to customers is a high priority for many employers, employees are often
given periodic training to update and refine their skills.

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JOB OUTLOOK:

As in the past, employment opportunities for retail salespersons are expected to

continue to be good because of the many job openings created each year due to
the need to replace the large number of workers who transfer to other
occupations or leave the labor force. Additional openings will be created by
growth in employment of retail salespersons. Employment is expected to
increase about as fast as the average for all occupations through the year 2008
due to anticipated growth in retail sales created by a growing population. There
will continue to be many opportunities for part-time workers, and demand will be
strong for temporary workers during peak selling periods, such as the Christmas
season.

SALES PEOPLE IN RETAIL INDUSTRY

Retail salespeople help customers find items in stores. They try to convince
customers to buy those items.
There it is in the display, the 5.1 megapixel digital camera you've been eyeing for
months. It's got more bells and whistles than a circus clown! You've researched
the brand, the features, and finally decided that today, you are going to get it.
You walk up to the counter and the salesperson asks with a smile, "What can I
help you with today?" You reply that you want to buy the camera. Your fingers
twitch with excitement. You can't wait to start shooting! "Oh, I'm sorry," the
salesperson says. "It's been a hot seller and we are out of stock. We sold the last
one just a few minutes ago."

You've waited and finally saved up enough money, and now it's not here! "Let me
check with our other store," the salesperson offers, checking the inventory on the
computer. "A-ha! They have two left. I'll put a hold on it right now. If you still want
it, I can arrange to have it shipped to your home," the salesperson says helpfully.
You sigh with relief. "Thank you," you say. "You've been very helpful." Thanks to
that salesperson, you're shooting high resolution digital images within a few days.

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Retail salespeople demonstrate how items work and explain details of items to
customers. They give information about various models, colors, and brands of an
item. Sometimes they give special information about very expensive or complex
items. They help customers to find items in the store. If they cannot find an item,
retail salespeople check the stockroom or make special orders from other stores.

Retail salespeople compute the amount of the total sale and receive cash, check,
or credit card payments. Then they give customers change and receipts. Most
salespeople are assigned to a register at the beginning of their shift. They are
also given drawers with ôbanksö of money. They count their banks to be sure
they contain the correct amount of money. At the end of their shift, salespeople
again count the drawers' contents and compare the totals with their sales data.
They also total charge forms, return slips, and other non-cash items. Finally,
salespeople deposit the day's sales at the store's cash office.

WORK ACTIVITIES
The following list of occupational tasks is specific to this career.

• Provide polite and efficient service to customers. Determine each

customer's needs.
• Describe items for sale and show different models or colors if necessary.
Answer questions.
• Show how items are used.
• Make special orders or check other stores for hard-to-find items.
• Receive cash, check, and charge card payments.
• Compute cost of total sale using cash register.
• Give cash change and receipts to customers.
• Bag or package items for customers.
• Wrap items to be given as gifts.
• Arrange to mail or deliver special-order items.
• Handle returns or exchanges of items.

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 • Count and keep track of money in cash register.
• Sort through charge slips, exchange slips, and coupons in cash register.
Balance cash drawers.
• Make cash deposits at the store's cash office at the end of business.
• Organize, display, and keep track of items for sale.
• Stock shelves and racks.
• Mark price tags.
• Keep work areas neat.
• Watch for and prevent security risks and thefts.
• Stay up-to-date about sales and special offers and store policies.

People in this career perform the following list of tasks, but the tasks are common
to many occupations.

• Work with the public.

• Convince others to buy goods.
• Get information needed to do the job.
• Establish and maintain relationships.
• Communicate with supervisors, peers, or subordinates.
• Update and use job-related knowledge.
• Resolve conflicts and negotiate with others.

Working Conditions
In a typical work setting, people in this career:

Interpersonal Relationships

• Deal with and provide service to customers.

• Have a high level of contact with customers and coworkers.
• May on occasion deal with angry or discourteous people.
• Are moderately responsible for the health and safety of customers. This
usually applies to customers who test drive cars or other vehicles and
equipment.

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 • May on occasion be placed in a conflict situation.
• Have moderate responsibility for outcomes. Salespeople are expected to
meet sales quotas.

Physical Work Conditions

• Often work indoors. However, retail salespeople may work outdoors if they
sell items such as cars, plants, or lumber yard materials.

Work Performance

• Must be exact in their work and be sure all details are done. This is so that
customers are charged the correct price for items.
• Often repeat the same tasks.

Hours/Travel

• May work part time or full time.

• May work evenings, weekends, or holidays.
• Often work longer hours around the winter holidays.
• May be discouraged from taking vacation time during peak shopping
periods.

Physical Demands
People in this career frequently:

• Stand for long periods of time.

• Walk from place to place in the store.
• Repeat the same motions.
• Use hands to handle, control, or feel objects, tools, or controls.

It is important for people in this career to be able to:

• Speak clearly so listeners can understand.

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 • Recognize and understand the speech of another person.
• Use stomach and lower back muscles to support the body for long periods
without getting tired.

It is not as important, but still necessary, for people in this career to be able to:

• See details of objects that are less than a few feet away.
• Use hands and fingers to grasp, move, or assemble objects.
• Move two or more limbs together (for example, two arms, two legs, or one
leg and one arm) while remaining in one place.
• See details of objects that are more than a few feet away.
• See differences between colors, shades, and brightness.
• Hold the arm and hand in one position or hold the hand steady while
moving the arm.
• Bend, stretch, twist, or reach out with the body, arms, and/or legs.
Sometimes these movements are made quickly and repeatedly.
• Use muscles to lift, push, pull, or carry heavy objects.
• Be physically active for long periods without getting out of breath.
• Coordinate movement of several parts of the body, such as arms and
legs, while the body is moving.

Skills and Abilities

People in this career need to:

Communicate

• Listen to others and ask questions.

• Understand spoken information.
• Express ideas clearly when speaking or writing.
• Read and understand work-related materials.

Reason and Problem Solve

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 • Analyze ideas and use logic to determine their strengths and weaknesses.
• Judge the costs and benefits of a possible action.
• Notice when something is wrong or is likely to go wrong.
• Follow guidelines to arrange objects or actions in a certain order.

Use Math and Science

• Use math skills to solve problems.

• Add, subtract, multiply, and divide quickly and correctly.

Work with People

• Recognize others' reactions and understand the possible causes.

• Teach others how to do something, such as operate a new product.

Knowledge
People in this career need knowledge in the following areas:

• Customer and Personal Service: Knowledge of providing special services

to customers based on their needs.
• Sales and Marketing: Knowledge of advertising and selling products and
services.
• Administration and Management: Knowledge of managing the operations
of a business, company, or group.
• Education and Training: Knowledge of teaching and the methods involved
in learning and instruction.
• Mathematics: Knowledge of the rules and uses of numbers. Areas of
knowledge include arithmetic, algebra, geometry, and statistics.
• English Language: Knowledge of the meaning, spelling, and use of the
English language.
• Public Safety and Security: Knowledge of protecting people, data, and
property.

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Interests
People in this career are people who tend to:

• Consider support from their employer important. They like to be treated

fairly and have supervisors who will back them up. They prefer jobs where
they are trained well.
• Consider relationships important. They like to work in a friendly, non-
competitive environment. They like to do things for other people. They
prefer jobs where they are not pressured to do things that go against their
sense of right and wrong.
• Consider good working conditions important. They like jobs offering steady
employment and good pay. They want employment that fits their individual
work style. They may prefer doing a variety of tasks, working alone, or
being busy all the time.
• Have enterprising interests. They like work activities that involve starting
up and carrying out projects, especially in business. They like to lead and
persuade others, make decisions, and take risks for profit.
• Have social interests. They like work activities that assist others and
promote learning and personal development. They like to communicate
with others: to teach, give advice, help, or otherwise be of service to
others.

Preparation
To work as a retail salesperson, you must:

complete on-the-job training; have excellent interpersonal skills; and

be self-motivated.

No formal education is required beyond high school. However, a college degree

can be good preparation for selling high priced or technical products, such as
cars or computers. Several fields of study provide a good background for this
occupation.

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Many employers require salespeople to have a college degree if their jobs are
part of a management-training program. Be sure to take courses in business
management, marketing, and computers if you are interested in a retail
management position.

On-the-job-Training
Retail salespeople learn their skills mainly through on-the-job training. In smaller
stores, training happens one-on-one with a manager or owner. Larger stores
have formal training programs. In these programs you learn about customer
service, security risks, and store policies. You also learn how to operate cash
registers and price-scanning machines.

Some retail salespeople receive special training from manufacturers. This

training is usually limited to expensive or complex items, such as computers or
cars. You may also need special training if you sell very specific types of items,
such as plants, fabrics, or health care products.

Work-Experience
Many jobs are entry level and do not require previous experience.

Some jobs, such as selling cars, building materials, or computers may require
previous experience.

Over the past twelve years, Belding Skills Development has earned a reputation
for results-driven retail training. Belding has designed and delivered world-class
retail Customer Service training programs and retail Selling Skills training
programs for some of today's most successful retailers!

The organized retail sector is expected to grow at 6% by 2010 and touch a retail

26
business of $ 17 billion as against its current growth level of 3% which at present
is estimated to be $ 6 billion, according to the Study undertaken by The
Associated Chambers of Commerce and Industry of India (ASSOCHAM).

The Study has revealed that the retail sector will grow at GDP 7% by 2010 and
enlarge its market share to $ 280 billion from its present estimated level of $ 200
billion.

Releasing the Study on `Retail Scenario in India’, ASSOCHAM President, Mr.

Mahendra K. Sanghi has revealed that the organized sector retailing is all set to
grow at much faster speed than unorganized sector and the higher growth speed
will alone be responsible for its higher market share which has been projected for
$17billion.
Cities and metropolies in which retailing will show booming prospects include
Mumbai, Delhi, Chennai, Kolkata, Bangalore and Kanpur, said Mr. Sanghi adding
that the popular mode adopted for building shopping malls in these cities will be
based on build, operate, lease and sell basis.

This system, as per the findings of ASSOCHAM will lead to establishments of

closer linkages and relationship between real estate developers, state
governments, financial institutions and retail industry.

As per ASSOC Ham’s estimates, investment opportunities that the retail sector
will create in next 4-5 years will result into continued urbanization and increase
the per capita income of Indian populace which will finally lead to greater
consumerism.

The growth of retail sector will lead to greater shift towards service economy in
which need for real estate will be paramount, said Mr. Sanghi.

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Franchising in retailing will emerge as a popular mode of retailing as their will be
proliferation of availability of brands with both foreign and Indian companies
acquiring a strong brand equity for their products in near future.

The retail boom currently being witnessed in India is likely to have a significant
impact on the commercial real estate sector as the large metropolis will have
sizable retail construction projects underway. However, there will be few
stumbling blocks that may restrict the growth of retail sector. These include very
high stamp duties on transfer of property which vary from state to state level.

A case in example is Gujarat, Uttar Pradesh and few other states where the
stamp duty is charged at 12.5%, while there are certain states like Delhi in which

the stamp duty levied is within the range of 8%.Urban Land Ceiling Act, Rent
Control Act and Land Acquisition Act until amended will continue to distort
property markets and cities, leading to exceptionally high property prices.
Presence of strong pro-tenancy laws will also make it difficult for retailers to grow
as this problem is compounded by lack of clarity over titles to ownership.

The government should encourage People of Indian Origin (PIO) to invest in real
estate and township building and foreign investment in real estate business and
retailing should also be opened up.On the domestic taxation front, sales tax rates
differ across the various Indian states, making supply chain management a
challenging task for organized retailers. Inter-state sales attracts Central Sales
Tax while for some categories of products, certain states levy import duties
namely entry tax on entry of goods into their territory. Simultaneously, states levy
export duties where goods are moved for sale outside state border.

Consumer behaviour in the organized retail industry has altered drastically over
the last few years, a fact that retailers need to be sensitive to. With the consumer

28
becoming increasingly discerning, it becomes vital for retailers to pay attention to
every little detail in order to be successful. Thus, providing a good brand
experience is vital. Brand experience would include several aspects: the timings
of the store, the consumer’s entry, the welcome that he or she receives, the
familiarity of the layout, the ability to browse with ease, the ease of navigation,
the variety and the range, the product knowledge possessed by salespeople, the

payment facilitation, the attractiveness of the loyalty programme, the seating

arrangement, the toilets, the packaging and the exit.
These are all crucial to the overall brand experience. If not handled well, it could
result in a disgruntled consumer, who spreads bad word-of-mouth. If the overall
brand experience is positive and pleasant, consumers are likely to keep coming
back to the store and the popularity of the store increases through wordof-
mouth.
The retail market is growing, not only in terms of numbers but also in terms of
stature, image and class.
It is interesting to know that in a modern city like Mumbai, which already had
relatively good standards, the retail industry has moved to an even higher level.
Customers are constantly changing and their expectations keep rising. Today
Indians have become world class consumers who demand world class service.
Regular update of skills, training, development and technology (bearing in mind
the necessity of keeping the human element in place because technology in
itself, is cold, impersonal and not at all customer friendly) will ensure that brand
marketers are able to keep pace in a dynamic world.
Under no circumstances must brand marketers be allowed to get regressive;
there is a need that brand marketers constantly rise to the occasion and surpass
customer expectation. Recently, Crossword, the bookstore chain inaugurated its
largest store at Kemps Corner in Mumbai, where S Rriram, CEO, Crossword
Bookstores, and his team played gracious hosts to authors and readers. The
spaciousness, the spread, and the focus on detail reflected world class standards
and established Crossword as a strong brand. Service is a key element in

29
successful retailing and attention to detail is likely to result in customer
satisfaction and greater sales.

Spice-of-variety
One of the reasons why consumers frequent a particular store is to look at
various items under one roof. Range is another detail that the retail industry
cannot ignore. At Pantaloon, there is an attempt to provide a wide choice so that
the customer can pick and choose as per his or her taste. Discount and low cost
are also factors that retailers need to take care of as an increasing number of
customers are willing to go a great distance to get value for their purchases.
Offering goods at a price lower than MRP seldom fails to attract consumers.
International appeal is yet another detail that retailers need to attend to.
International products and brands still attract the Indian consumer and even a
small Marks & Spencer store has great appeal. Training is another important
aspect of retail. Shoppers’ Stop and Nirmal Lifestyles (which transformed a far-
flung suburb like Mulund into a retail hub) are both known to have top class
training programmes for their executives.
Finally, novelty is a detail that retail just cannot miss. In fact, it is a factor that
serves to differentiate an outlet from other outlets. Malls largely owe their
success to the novelty factor attached to them. Retailers need to keep several
things in mind in order to enhance customer experience and provide a positive
brand experience. A few are listed below:

Understand customer needs quickly

A retailing professional notices a customer’s need even before he verbalises it.
Promptness in identifying and satisfying every customer’s unique needs is
essential.
This requires keen listening and an acute sense of observation, which would
enable the retailer to provide a good brand experience.

30
"I am excited about the segment," said Jain. "Our outlets are very modern. We do
not sell at the rate of gold or diamond on a particular day, we sell at a fixed
price."
Intergold is a subsidiary of the Rosy Blue Group - a diamond manufacturing
company with offices in 15 countries. The group entered the Indian retail jewelry
in 1988 with its first store in Mumbai. Now, it has 24 stores in 15 cities. It is
looking to add 12 stores every year, said Jain.

He suggested that funding is a major issue for an organized retail model. "It takes
years for a retail chain to break even," said Jain. "If you get into malls, you have
to deal with the high cost of rent." In addition, it has been difficult to hire educated
people and talent into retail stores, he added. "Indian parents have traditionally
not been willing to send their children into the retailing business."

For the shopping malls, the struggle will be to deal with supply chain
inefficiencies, said Shoppers' Stop's Raheja. The distribution system in India has
to be streamlined to avoid wastage and to ensure low costs, according to him.
"Supply chain is the biggest concern," he said. "Indian consumer is very price
conscious. He wants value for money." Jain said the Indian malls have a great
future as they provide entertainment for shoppers, unlike traditional "mom and
pop" stores.

The malls are creating a shopping experience," added Jain. "The success of
Café Coffee Day and Barista has been because people did not have a place for
leisure and hanging out outside their offices or classrooms."

For Biyani, malls will remain a big city phenomenon only. According to him, the
growth will mainly be in specialty stores such as stores for watches, branded
clothing and not a generic super stores such as Wal-Mart.

31
According to the Federation study, development of the retail industry should be
made a priority by the Indian government. Issues such as inter-state movement
of goods, and infrastructure also need to be tackled to develop the retail industry
in India. Lack of foreign investment is what is keeping the industry from growing,
according to the study.

TRAINING THE SALES FORCE:

Once a company has decided to invest time, money and resources in sales force
training, the next big challenge is its implementation. There is no "magic wand"
that will implement what's learned in a sales and marketing training session and
make it part of the company culture. A high performance sales culture is not an
event, but a journey. All journeys need road maps.

Effective Sales Training

Effective sales training is the foundation upon which long-term sales success is
built. Unfortunately, many sales training programs consist of just listening to
someone tell you what you should be doing and perhaps showing you how the
instructor would do it.

The key to effective sales training is to provide more than just what-to-do
training. It must also show you how to do it along with providing the opportunity
to hone your skill by actually doing it.

For training to be truly effective, it needs to be a process and not an event.

Levels of Sales Training

Level-1

When your new employee is at Level 1 they are unconsciously incompetent.

They are unconscious of how you run your business and what to do at their new
jobs. They are incompetent to the terms of the skills needed to be a successful

32
employee in your business. Even if they have some sales skills when they start,
they still are unconscious to how things run within your company.

Start by teaching the basics of your business - step by step. Baby steps, until
they grow to the next level of learning. Let them develop the skills of welcoming
your customers into the store and gaining the customer’s trust. As your new staff
members build a rapport and new friendships with the customers, they will also
be building their own confidence on the sales floor.

Of course, product knowledge is a main factor in making the sale. But, when new
employees start out, it’s more important for them to make themselves and the
customers feel comfortable. The knowledge of the inventory will soon be learned
as they work with it.

Treat your new staff as if they were your special customers. Sell them on the
excitement of your inventory. This training process can be turned into an
enjoyable and rewarding experience for you. What a thrill to bring in new
members to your team, get to know them, and watch them learn and grow.

Even though this level of training may start with the basics, it can actually be the
most encouraging level of all because the new employee starts out with a lot of
energy and excitement about his or her new position. If you pick up on that
energy you will find it to be a most pleasant experience for both of you.

Level 2: Sales Training

At this level your trail training period should be over and, hopefully, you have
decided that your new employees are the right people for their jobs. Though they
have learned a lot the first month, they are now consciously incompetent. They
are conscious of what is needed to be done on the job, yet they still do not have
the skills needed to be a great salesperson and are still incompetent.

33
That is why this level can be the most frustrating of all. The excitement of the
new job may have worn off somewhat and they are frustrated because they see
other team players making all the sales.

At this time it is important to recognize their accomplishments and compliment

them on how well they are doing. Keep supporting and encouraging them at this
level - you need to be a cheerleader.

Set up a meeting with them to discuss how they are doing and offer your support
in their continued learning process. Let them talk to you about how they feel
about their new positions. Discuss concerns and answer any questions they may
have about their new positions. Find out how they feel about selling and what
empowers them to work on improving their skills.

Your sales people will increase their sales drastically when they add some
genuine enthusiasm for the products and services they are selling.

Level 3: Sales Training

Congratulations are in order when the newest members of your sales team reach
this level.

Whoever said, “You can’t get good help”, never took the time to train a staff to
reach this level. Why settle for less than the best team your money can buy?

When your employee has reached level three they are consciously competent.
They are conscious of what needs to be done on the job and are very
knowledgeable about how your business runs. They are competent because they
know your products well and can sell them on their own, easily and successfully.
Delegate areas were they show strength, show your appreciation and reward
them for their accomplishments. Continue the training process by informing them
of changes in your policies and products. Empower your staff to make decisions

34
and accept their input toward your success at regular store meetings. If you do,
you’ll soon have the dream team you’ve always wanted.

Government policy

There has been vigorous opposition to foreign direct investment (FDI) in retailing
from small traders who fear that foreign retailing companies would take away
their business, lead to the closure of many small trading businesses and result in
considerable unemployment. Given the political clout of the small trading
community, because of their enormous numbers, the government has barred FDI
in retailing since 1997. Hence, at present, foreign retailers can only enter the
retailing sector through franchising agreements.

Organisational characteristics

Given the traditional and underdeveloped state of the Indian retail sector, the
organisational characteristics of retail enterprises are rudimentary. Most of them
belong to independent enterprises in the form of small family businesses.
Cooperatives have been present in India for several decades, spurred by the
encouragement given by the Indian Government, which viewed the cooperative
movement as an integral component of its erstwhile socialist policies. However,
since the 1990s, there has been a reduction in government support for
cooperatives. In 2002, there were about 35,000 outlets run by
cooperatives.Economic liberalisation, competition and foreign investment since
the 1990s led to a proliferation of brands with both foreign and Indian companies
acquiring a strong brand equity for their products. Hence, franchising emerged as
a popular mode of retailing. Sales of franchises grew at a rapid pace of 14% per
annum over the review period. In 2002, there were over 5,000 franchised outlets.
The other major retailing organisation format is multiples, better known as "chain
stores" in India. In 2002, there were about 1,800 chain stores. Among the various
organisational formats, sales of chain stores grew at the fastest pace, with sales
growth during the review period averaging 24% per year.

35
Food-retailers

There are a large variety of retailers operating in the food retailing sector. This is
not surprising considering the enormous size of the market for food. However,
traditional types of retailers, who operate small single outlet businesses mainly
using family labour, dominate this sector. In comparison, supermarkets account
for a minuscule proportion of food sales. This is because of the strong
competitive strengths that traditional retailers possess. These include low
operating costs and overheads, low margins, proximity to customers, long
opening hours, and additional services to customers (such as home delivery).
Nevertheless, supermarket sales expanded at a much higher rate than other
retailers. This is because greater numbers of higher income Indians prefer to
shop at supermarkets because of convenience, higher standards of hygiene and
the attractive ambience.

Health and beauty products retailers

With growth in incomes, Indians have been spending more on health and beauty
products. As in the case of other retailing sectors, small single-outlet retailers
also dominate sales of health and beauty products. However, in recent years, a
couple of retail chains specialising in health & beauty products have sprung up.
At present, they account for only a tiny share of sales of these products.
However, as Indians spend more on such products in future, their business will
undoubtedly expand substantially. There is also scope for entry of more such
chains.
Clothing and footwear retailers

Numerous clothing and footwear shops are to be found in Indian cities and
towns, especially in shopping centres and markets. These are a mix of traditional
and modern stores. Traditional outlets are small and cramped with little emphasis
on alluring displays. They basically stock a limited range of cheap and popular
items. In contrast, modern clothing and footwear stores are spacious with sample

36
products attractively displayed in windows, sometimes with mannequins. Just as
in the case of food retailing, there are also a huge number of retailers selling
clothing and footwear in makeshift stalls or on footpaths. Because of their rock-
bottom prices, which are much lower than prices of branded products, they
attract a large number of customers.

Home furniture and household goods retailers

The home furniture and household goods retailing sector in India is dominated by
small retailers. Despite the large size of this market, very few modern and large
retailers have established specialised stores for these products. However, there
is considerable potential for the entry or expansion of specialised retail chains
and it is likely that this will happen during the next few years.

Durable-goods-retailers
The entry of a large number of foreign consumer durable companies into the
Indian market during the 1990s after the government liberalised its foreign
investment and import policies transformed this sector dramatically. A much
larger variety of consumer electronic items and household appliances became
available to the Indian customer. Competition among companies to sell their
brands provided a strong impetus to the growth for retailers operating in this
sector.

Leisure and personal goods retailers

Rising household incomes due to economic growth spurred consumer
expenditure on leisure and personal goods in India. There are specialised
retailers for each category of products in this sector. A few retail chains also
emerged particularly in the retailing of books and music products. Another key
feature of this sector is the popularity of franchising arrangements between
established manufacturers and retailers. Alternative selling channels

37
Sales through most alternative selling channels are tiny or non-existent. The only
exception was direct selling, which grew rapidly over the review period. The main
reason for this was that direct selling companies could easily attract a huge
number of "distributors", who constitute the key element for the success of any
direct selling company. Many of these are unemployed Indian housewives who
welcomed this opportunity to earn additional income for their households. The
low start-up costs meant that they could easily start this business.

Forecast total retail sales

Retail sales (in real terms) are predicted to rise more rapidly than consumer
expenditure during 2003-2008. The forecast growth in real retail sales during
2003-2008 is 8.3% per year (compared with 7.1% for consumer expenditure).
Inevitably, modernisation of the Indian retail sector will be reflected in rapid
growth in sales of supermarkets, department stores and hypermarkets. This is
because of the growing preference of the affluent and upper middle classes for
shopping at these types of retail stores, given the conveniences they offer such
as shopping ambience, variety and a single-point source for purchases. Hence,
sales from these large format stores are predicted to expand at growth rates
ranging from 24% to 49% per year during 2003-2008. However, such rapid
growth is from a small base. Hence, they will continue to account for only a small
share of total retail sales in 2008.
Retailing, one of the largest sectors in the global economy, is going through a
transition phase not only in India but the world over. For a long time, the corner
grocery store was the only choice available to the consumer, especially in the

urban areas. This is slowly giving way to international formats of retailing. The
traditional food and grocery segment has seen the emergence of
supermarkets/grocery chains (Food World, Nilgiris, Bombay Bazaar, Apna
Bazaar), convenience stores (ConveniO, HP Speedmart) and fast-food chains
(McDonalds, Dominos).

38
The emergence of new sectors has been accompanied by changes in existing
formats as well as the beginning of new formats:
o Hypermarket:
o Large supermarkets, typically 3,500-5,000 sq. ft.
o Mini supermarkets, typically 1,000-2,000 sq. ft.
o Convenience stores, typically 750-1,000sq. ft.
o Discount/shopping list grocer

In order to appeal to all classes of the society, retail stores would have to identify
with different lifestyles. In a sense, this trend is already visible with the
emergence of stores with an essentially `value for money' image. The
attractiveness of the other stores actually appeals to the existing affluent class as
well as those who aspire for to be part of this class. Hence, one can assume that
the retailing revolution is emerging along the lines of the economic evolution of
society.

Spread of organized retailing:

Organized retailing is spreading and making its presence felt in different parts of
the country. The trend in grocery retailing, however, has been slightly different
with a growth concentration in the South.

However, the Mecca of retailing is undoubtedly Chennai. What was considered a

`traditional', conservative' and `cost-conscious' market, proved to be the home
ground for most of the successful retail names - Food World, Music World,
Health and Glow, Vitan, Subhiksha and Viveks -to name a few.

The choice of Chennai as the `retail capital' has surprised many, but a variety of
factors acted in its favour. Chennai, in spite of being a rapidly growing metropolis
offers reasonable real estate prices, one of the most critical elements for the
industry. Chennai has been witnessing a high industrial growth and increasing
presence of the MNCs, both in the IT sector as well as outside it. The industrial

39
boom has led to the emergence of new residential areas with aggregation of
professionals as well as a rapid increase in the number of `double-income'
households and growth of the nouveau riche/upper middle class with increased
purchasing power. This has been combined with the increasing need for touch
and feel shopping (especially for the large migrant population). All the factors
have acted favourably in nurturing the industry.

Consumer- the prime mover

A variety of factors seem to influence the growth in the retailing industry.
`Consumer Pull', however, seems to be the most important driving factor behind
the sustenance of the industry.

In this context, a brief survey among consumers across income segments to

understand their spending pattern. An analysis of the `monthly purchase basket
of the consumers surveyed indicated that the average monthly household spend
on food and grocery related items varied across income segments. For instance,
in the case of upper income households, the average spend was around Rs
4,200 per month. As against this, the average spend in the case of a
middleincome
household was around Rs. 2,850 and lower income households Rs.
1,250 per month. (This is computed from a sample of 100 customers having an
average family size of four).

Based on the distribution of the more than 15 lakh households in Chennai across
income segments and the average spend, a conservative estimate of the grocery
retailing potential at Chennai will be around Rs. 300 crores.

Besides increasing purchasing power, a variety of other factors also seem to fuel
the retailing boom. With increase in double-income households and
workingwomen, there is an increasing pressure on time with very little time being
available for leisure. In this scenario, consumers are seeking the convenience of

40
one-stop shopping, whereby they could have better utility of time. They are also
seeking speed and efficiency in processing, as a result. Being more aware,
consumers are on the lookout for more information, better quality and hygiene as
well as increased customer service. These changes in consumer behaviour also
augur well for the retailing industry.
However, in India there are no uniform trends with respect to consumer buying
behaviour. There are visible differences in the shopping pattern of consumers
across income segments as shown in the table.

Organized retailing has definitely made headway in the upper class. However,
even in this segment, items such as milk, fruits, vegetables and a significant
portion of `through-the-month' purchases seem to be done at traditional outlets.
The middle-income class prefer shopping for processed food and personal care
in supermarkets and fall back on traditional outlets for bulk shopping. Organized
retail outlets seem to be associated with branded items/special purchases.
Organized retailing does not seem to have made an impact on the lower class,
except for `curiosity' shopping.

The biggest question before organized retailers therefore, is whether this really
means a huge untapped potential for the organized retailers and whether the
conversion in mindset going to be easy.

41
42
 IMPORTANCE TO TRAINING
How much importance your company gives to training of sales persons?
Very important 17.14%
Important 61.42%
Somewhat important 18.57%
Not at all important 2.85%
Table-1

70.00%

60.00%

50.00%

40.00%
Series2
30.00%

20.00%

10.00%

0.00%
very important somewhat not at all
important important important

Graph-1

The following graph shows the details of importance given to the training of sales
people by the company. Most of the companies have given it lot of importance to
training. Few companies rate it as most important factor. So we can clearly see
that there is lot of importance given to training in the retail industry in Bangalore.
Inference: 78% of the respondents feel that training of sales people is very
important.

ASSESSMENT OF THE TRAINING NEEDS

43
How training needs of sales people are assessed? Based on
Performance evaluation 0%
Changes in product or market 1.42%
Job description 98.57%
Any other 0%
Table-2

performance
evaluation
changes in
products/markets
job decription

any other

Graph-2
This graph gives the details of how the training needs of the sales people are
assessed. Most of the companies do it on the basis of the job description of the
sales people. Few companies do it when there is any change in the product or
the market as well.
Inference: 98% of the companies assess the training needs based on the job
description.

NUMBER OF SALES PEOPLE WORKING IN BANGLORE

What is the strength of your sales force in?

44
 a) Bangalore

1-5 93%
6-10 5%
11-20 2%
>20 0%
Table-3

1 to 5
6 to 10
11 to 20
>20

Graph-3

This graph depicts the number of sales people working for the retail outlets in
Banglore. Most of them have around one to five sales people working for them.
Only few have more than five sales people.
Inference: 93% of the company’s sales force in Banglore ranges from 1-5 .

NUMBER OF SALES PEOPLE ALL OVER THE COUNTRY

b) All India

45
1-5 0%
6-10 0%
11-20 0%
>20 100%
Table-4

1 to 5
6 to 10
11 to 20
>20

Graph-4

This graph shows the number of sales people employed by the retail
companies in the country. It is clearly shown that all the companies have
more than twenty sales people employed in the whole country as a whole.

FREQUENCY OF CONDUCTING THE TRAINING PROGRAMME

How often the training programmes are conducted for the sales people?
Once a year 79.72%
Two or more times a year 2.70%
As and when needed 14.86%

46
Any other 2.70%
Table-5

90.00%
80.00%
70.00%
60.00%
50.00%
Series2
40.00%
30.00%
20.00%
10.00%
0.00%
once a two or as and any other
year more when
times a needed
year

Graph-5
The following graph shows how often the sales people of the retail industry
are provided with training. Most of the companies or the outlets provide them
training once in a year. And the rest of the retail sales people are given
training as and when required.
Inference: 79% of the companies conduct training programmes for their sales
force once in a year.

BUDGET FOR TRAINING

Do you have a yearly budget for training programmes?

Yes 36.36%
No 63.63%

47
 Table-6

70.00%

60.00%

50.00%

40.00%
Series2
30.00%

20.00%

10.00%

0.00%
yes no

Graph-6

This graph shows weather there is any fixed budget for the training
programmes for the sales people in the retail industry. The graph shows that
most of the companies does not have any budget allocated for training
purpose as such. But some companies do have a budget for training but the
managers of the retail outlets are not provided with the clear numbers of it.
Inference: 63% of the retail companies say that they don’t have any fixed
budget for their training programmes.

AIMS AND OBJECTIVES OF TRAINING

What are the aims or objectives behind training your sales staff?
Increase current skills and knowledge 18.64%
Increase sales performance 54.23%
Motivating sales people 26.27%
Any other 0.84%
Table-7

48
 60.00%

50.00%

40.00%

30.00% Series2

20.00%

10.00%

0.00%

performance

any other
sales people
current skills

motivating
knowledge
increase
increase

sales
and

Graph-7

This graph shows us the aims and objectives behind training the sales force in
the retail industry. Most of the retail sales people are trained to enhance their
sales performance. Rest of them are trained for improving upon the current skills
and knowledge or for motivating them to perform better.
Inference: according to 54% of the companies main objectives of training
programmes is to increase the sales performance. 26% of the companies do it
for motivating sales people also.

METHODS USED FOR TRAINING

What methods do you normally use for training programmes for sales persons?
Lectures 25%
Audio visions 0%
Product demonstration 0%
Role playing 0%
On the job training 75%
Business games 0%
Case discussions 0%

49
Any other 0%
Table-8

80%
70%
60%
50%
40% Series2
30%
20%
10%
0%
o n a ls

r
g

ng

es
es

ns

he
tio

yin

m
ni
ur

su

sio

ot
ra

la

ai

ga
ct

i
-v

st

us

y
bu b t r
p
le

an
io

s
le

sc
es
d

jo
ro
em
au

di
sin
e

se
th
td

ca
on
uc
od
pr

Graph-8
This graph shows us the methods used in training the sales people in the retail
industry. Most of the retail sales people are trained by giving on the job training
and by giving lectures to them. So the best way to train the sales people in this
industry is by giving them on the job training.
Inference: most of the companies (75%) give on the job training to the sales
people

PLACE OF TRAINING
Where does the training normally take place?
Company’s premises 97.14%
Hotels 1.42%
Any other 1.42%
Table-9

50
 company's premises
hotels
any other

Graph-9

Here in this graph we can see that most of the times the sales people of retail
industry are trained in the company premises only. Only few of the companies
take them to hotels or some other place. So its most feasible to train the sales
people of retail industry in the outlets itself so that they get practical knowledge
and experience at the time of learning itself.
Inference: 97% of the training programmes takes place at companies premises.

WHY TRAIN SALES FORCE

What drives you for training your sales force?

Customer satisfaction survey 1.44%
Sales performance 94.20%
Competitors analysis 0%
Management feedback 4.34%
Any other 0%
Table-10

51
 100%
90%
80%
70%
60%
50% Series2
40%
30%
20%
10%
0%

performance
satisfaction

competitor's

any other
management
customer

feed back
analysis
survey

sales

Graph-10

This graph shows the reason behind training the sales force. The basic reason
that drives the company to train the sales force. Most of the companies feel that
it’s the sales performance that drives the company to train their sales force and
some times because of the feedback given by the management. So the training
is basically given to enhance the sales performance of the sales people.
Inference: 94% of the respondents feel that it’s the sales performance which
drives them for training their sales force.

THE TRAINER
Who train your salesperson?
Faculty within the company 88.23%
Faculty from outside 0%
Combination of a and b 11.76%
Any other 0%
Table-11

52
 100.00%
90.00%
80.00%
70.00%
60.00%
50.00% Series2
40.00%
30.00%
20.00%
10.00%
0.00%

r
e
ny

he
id

d
pa

ts

ot
an
ou
m

y
a

an
co

of
f ro
e

n
th

t io
ty
in

na
l
cu
ith

bi
fa
w

m
ty

co
l
cu
fa

Graph-11

This graph tells about who trains the sales people mostly. Most of the retail
organizations have their own faculty from the company itself. Some of the retail
companies use both faculty from the company and from outside some times. So
by this graph we can see that in retail industry the sales people are mostly
trained by the faculty within the company.
Inference: 88% of the retail companies have the faculty from the company itself.

PRODUCT OR SERVICE

What type of product or services you sell?

FMCG or non durable products 18.82%
Durable products 81.17%
Industrial products 0%
Any other 0%
Table-12

53
 90.00%
80.00%
70.00%
60.00%
50.00%
Series2
40.00%
30.00%
20.00%
10.00%
0.00%
FMCG or durable industrial any other
non product product
durable

Graph-12

This graph shows the details of the type of product or service provided by the
company. Most of them are into durable products and few of the companies are
into FMCG products.
Inference: 81% of the products or service provided by the retail organisations are
durables.

CONTENTS OF THE TRAINING

What are the contents of the training programmes for new and experienced sales
person?
Product knowledge 32.22%
Selling techniques 30.80%
Market knowledge 28.43%
Negotiating skills 8.53%
Sales related marketing policies 0%
Competitors knowledge 0%
Any other 0%
Table-13

54
 35.00%
30.00%
25.00%
20.00%
Series2
15.00%
10.00%
5.00%
0.00%
knowledge

marketting
knowledge

related
competitor

any other
negotiating

knowledge
techniques

sales
product

selling

skills

Graph-13

The following graph gives us the details of what kind of content is provided to the
sales force in the training. They are mostly provided with product and market
knowledge and selling techniques. Some of the companies also provide them
with the negotiating skills.
Inference: product knowledge is given the highest priority in the training
programme.

TRAINING AIDS USED

What type of training aids are used in your training programmes?

OH projector 12.19%
LCD projector 14.63%
Black or White board 48.78%
None 24.39%
Table-14

55
 60.00%

50.00%

40.00%

30.00% Series2

20.00%

10.00%

0.00%
OH LCD black or none
projector projector white
board

Graph-14
This graph gives the details about the training aids used for training the sales
force. Most of the companies provide training with the help of black and white
boards, few use OH projectors and LCD projectors also. And lot of companies
does not use any of these aids during training the sales force.
Inference: 48% of the companies use black and white boards as the training aid.

INSTRUCTIONAL MATERIAL

What kind of instructional materials and training aids are provided?

Manuals or product leaflets 90.14%
Cases 0%
None 9.85%
Table-15

56
 manual or product
leaflets
cases

none

Graph-15

This graph gives the details about the instructional material provided during the
training. Maximum number of companies use only manual or leaflets that give the
product details, none of the companies give the case studies to the sales force.
And few companies never used any of these materials.
Inference: 90% of the companies use manuals or product leaflets as instructional
materials in training programmes.

QUESTIONNAIRE FOR THE SALES FORCE:

EFFECTIVENESS OF THE TRAINING

Has the training provided to you helped you in doing your job well?
Very much helpful 20.58%
Helpful 72.05%
Somewhat helpful 7.35%
Not helpful 0%
Not at all helpful 0%
Table-16

57
 very much helpful
helpful
some what helpful
not helpful
no at all helpful

Graph-16
This graph shows us the level of help that the sales force gained by under going
the training programme. It is seen that most of the sales people get lot of help
from training. There is no negative impact or results of training at all.
Inference: 72%of the sales people feel that training programmes are helpful in
doing their job well

FREQUENCY OR TRAINING PROGRAMMES

How often the training is provided to you?
Once a year 78.58%
Once in two years 9.58%
Twice a year 2.73%
Any other 9.58%
Table-17

58
 90.00%
80.00%
70.00%
60.00%
50.00%
Series2
40.00%
30.00%
20.00%
10.00%
0.00%
once a once in twice a any other
year two years year

Graph-17

This graph shows how many times the training is provided to the sales people.
Most of the companies provide training only once in a year. Only few companies
provide training more than once or even less than that.
Inference: most of the sales people (78%) are provided training once in a year.

SUGGESTION BY THE SALES FORCE

Any suggestions for improving the training programmes?

Contents 10.14%
Method used 2.89%
Trainers 14.49%
Evaluation method used 2.89%
No suggestions 69.56%
Table-18

59
 80.00%
70.00%
60.00%
50.00%
40.00% Series2
30.00%
20.00%
10.00%
0.00%

ed
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ed
ts

ns
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en

us

io
us

in

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nt

tra

d
ds

e
co

ho

gg
ho

et

su
et

m
m

no
n
t io
ua
al
ev

Graph-18

This graph shows the details about what the sales people suggest about the
training for its betterment. Most of them have no suggestions and few of them
suggest to improve in the case of trainer and the contents used or provided.
Inference: 69% of the salesforce have no suggestions for improving the training
programme.

TRAINING NEEDS

In which areas of your selling job you need training?

Selling techniques 22.97%
Negotiating skills 9.79%
Communication skills 22.29%
Product knowledge 22.63%
Market knowledge 20.94%
Retailing operations 0%
Consumer behaviors 1.35%
Any other 0%
Table19

60
 selling techniques

negotiating skills

communication
skills
product knowledge

marketing
knowledge
consumer behavior

Graph-19
This graph shows us the areas in which the sales force feels they need training.
The rate the selling techniques, communication skills, product and market
knowledge as their first priorities.
Inference: selling techniques (22%), communication skills (22%), product
knowledge (22%), market knowledge (20%) are the areas which are prioritized
by the sales people.

EXPERIENCE OF SALES PEOPLE

How many years of experience do you have in selling?
0-6 months 50%
7-24 months 50%
25-60 months 0%
>5 years 0%
Table-20

61
 60%

50%

40%

30% Series2

20%

10%

0%
0 to 6 7 to 24 25 to 60 >5 years
months months months

Graph-20

This graph gives the details of the experience that the sales people have in retail
industry. Most of them have either 6 months or at max 2years. This shows that
most of the sales people the retail industry don’t stick to this industry for a long
time.
Inference: sales people in this industry do not have experience of more than 2
years.

QUALIFICATION OF THE SALES FORCE

Your qualification.
Below SSLC 2.38%
SSLC 95.23%
Graduation 2.8%
Any other 0%
Table-21

62
 below SSLC
SSLC
graduation
anyother

Graph-21

The following graph gives the educational details of the sales force in retain
industry. Most of the sales people in this industry are not highly educated. They
have the minimum qualification required to do the job. Almost all of them are
either SSLC pass or even under that.
Inference: 95% of the sales people’ qualification is SSLC.

INCOME OF SALES FORCE

Your monthly income (Rs)
<3000 7.35%
3000-5000 70.58%
5000-7500 22.05%
7500-10000 0%
>10000 0%
Table-22

63
 <3000
3001 to 5000
5001 to 7500
7500 to 10000
>10000

Table-22

This graph gives the details about the income of the sales force in retail industry.
Most of the sales people get between three to five thousands per month. Only
few get five to seven and a half thousands per month. So the income level of
sales people in this industry is very less.
Inference: 705 of sales force’ monthly income ranges from 3000 to 5000.

COMMISION AND INCENTIVES

Does your income include commission or incentives?
Only fixed salary 98.33%
Only commission 0%
Some percent commission 0%
Fixed salary + commission 1.66%
Any other 0%
Table-23

64
 120.00%
100.00%
80.00%
60.00% Series2
40.00%
20.00%
0.00%

r
ry

on

on

he
io
la

isi

isi

ot
is
sa

y
ed

om

an
co

co
fix

tc
ly

+
ly

en

ry
on
on

rc

la
pe

sa
e

ed
m

fix
so

Graph-23

This graph shows us the type of compensation paid to the sales people in retail
industry. Most of the companies pay only fixed salaries to them, only few provide
for incentives based on the performance.
Inference: 98% of sales people have only fixed salary in this industry.

65
FINDINGS:

1. The companies in retail industry give a lot of importance (79%) to the

training of sales people.

66
 2. The training needs of sales people are assessed mostly (98%) on the
basis of their job description.
3. Most of the retail outlets (93%) have around 1 to 5 sales people working
for them.
4. The training in most of the companies (79%) is provided only once in a
year.
5. Most of the companies (63%) do not have any fixed budget for training
their sales people.
6. Most of the companies (25%) use lectures and on the job training (75%)
as the training methods.
7. The training takes place in the company premises itself.
8. Product knowledge, selling techniques, market knowledge and negotiating
skills are given the most importance in training the sales force in retail
industry.
9. Black and white boards (50%) and product manuals (90%) are used as
training aids in the training sessions.
10. Most (93%) of the sales people feel training is very helpful in doing their
job well.
11. Most of the companies in retail industry have employed sales people with
low qualification such as SSLC (95%) and Graduation (3%).
12. Most of the retail companies (70%) give salaries between 3 thousands to
5 thousands per month and mostly (98%) they give only fixed salaries,
without any incentives.

CONCLUSION:

The nature of training itself is undergoing a transformation. Organizational

expectations for training have shifted dramatically. The pronounced change is a

67
new and vigorous justification of the cost of training based on Return on
Investment(ROI) and organizational impact. This transition has been driven by
the competitive nature of the international economy.

In Retail Industry which is in boom from past one decade there is a drastic
change in the way the business is run. So the people in this industry are also
changing with more professional outlook with more knowledge and skills to
impress the consumers and make good sales at the end of the day.

The study indicates that training of sales people is given importance to greater
extent to meet the requirements. Basically the assessment of the training needs
is done by Companies on the basis of job description of the salespeople. The
frequency of conducting the training programme to sales people in retail industry
is mostly once in a year and most retailers do not have any fixed budget
allocated for training programmes.

The nature of training itself is undergoing a transformation. As training has

moved from satisfying trainees to improving organizational and sales
performance.

Effective sales training is the foundation upon which long term sales success
is built. Hence the study indicates that for effectiveness of training programmes
the sales people are given on the job training at the company premises. Most of
retail organisations have their own faculty from the company as the trainer. Most
of them use black and white board in the training sessions as their aids, and
very few use overhead and LCD Projectors.

The ability to generate and apply knowledge is a competitive advantage and in

order to sustain competitive advantage of sales people they are provided with
product knowledge, selling skills, and market knowledge through training.

68
 The instructional material provided during the training is manuals or leaflets
that give product details. However, case method of studies, role-plays, CDs is not
used at all by any retailer in the training programmes.

The study has also provided an insight in understanding the sales people point
of view with regards to the training programmes that are provided to them by the
company. Sales people feel the training programmes are helpful in meeting the
requirements of the organisation. Most of them are satisfied with the training
being conducted once in a year. The areas included in training such as selling
techniques, communication skills, product knowledge and market knowledge
have served the sales people’s expectations to a great extent. The experience of
sales people is ranging from six months to two years. Most of the sales people in
this industry are not highly educated, they have minimum qualification required to
do the job, and most of them are SSLC passed. Their salary ranges from
Rs3000 to Rs5000 (per month) which is fixed and only few companies provide for
incentives based on performance (1.66%).

Finally to conclude, the training aspects of sales people in retail industry of

Bangalore are well taken care. The companies now are giving a lot of
importance to the training, as it makes a lot of difference to the success of their
business and to sustain in the market. There are a few improvements required
which can enable the sales people with even better skills to impress, convince
and handle the customers very well.

SUGGESTIONS

69
• Their should be better quality of trainers and the better methods of training
needed as some of the sales people are not very satisfied with them.
• Most of the companies provide training only once in a year which is not
sufficient as the market is very dynamic, hence the sales people should be
provided with training as and when needed to update their knowledge in
addition to once a year training.
• Specific training objectives should be outlined on the basis of performance
parameters, job description, and type of product and market.
• The trainee should be helped to see the need for training by making him
aware of the personal benefits he can achieve through better
performance.
• If necessary, a combination of training methods should be selected such
as role play, case method, video cassette/CD, lectures, demonstration of
product etc.
• The trainees should be provided with regular, constructive feedback
concerning their progress in training and implementation of the newly
acquired abilities.
• In retail industry it is seen that the sales people are not highly educated,
hence, the training content should be very simple and easy to understand.

70
ANNEXURE

1) How much importance your company gives to training of salespersons? Why?

71
 o Very important
o Important
o Somewhat important
o Not at all important.

2) How training needs of salespeople are assessed? Based on

o Performance Evaluation
o Changes in products/markets
o Job description
o Any other

3) What is the strength of your sales force on

o All India
o Bangalore office

Bangalore All India

1-5 1-5
6-10 6-10
11-20 11-20
>20 >20

4) How often the training programmes are conducted for sales people?
o Once a year
o Two or more times a year
o As and when needed
o Any other…………………..

5) Do you have a yearly budget for training programmes?

o Yes
o No
o If Yes how much……………..?

6) What are the aims or objectives behind training your sales staff?
o Increase current skills and Knowledge
o Increase sales performance
o Motivating sales persons
o Any other ……………………

7) What methods do you normally use for training programmes for sales persons?
o Lectures
o Audio-visuals

72
 o Product demonstrations
o Role playing
o On the job training
o Business games
o Case discussions
o Any other………………

8) Where does the training normally take place?

o Company’s premises
o Hotels
o Any other..............

9) What drives you for training your sales force?

o Customer satisfaction survey
o Sales performance
o Competitor’s analysis
o Management feedback
o Any other………………

10) Who train your sales person?

o Faculty within the company
o Faculty from outside
o Combination of a and b
o Any other…………………..

11) What type of products /services you sell?

o FMCG or Non-Durable products
o Durable products
o Industrial products
o Any other………………

12) What are the contents of the training programmes for New and Experienced sales
persons?
o Product knowledge
o Selling techniques
o Market knowledge
o Negotiating skills
o Sales related marketing policies
o Competitors knowledge
o Any other

13) What type of training aids are used in your training programmes?

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o OH projector
o LCD projector
o Black/white boards
o Any other…….

14) What kind of instructional materials and training aids are provided?
o Manuals/product leaflets
o Cases
o Any other……….

Thank you

Questionnaire for the sales force

1) Has the training provided to you helped you in doing your job well?
o Very much helpful
o Helpful
o Somewhat helpful
o Not helpful
o Not at all helpful.

2) How often the training is provided to you?

o Once a year
o Once in two years
o Twice a year
o Any other…………

3) Any suggestions for improving the training programmes?

o Contents
o Methods used
o Trainers
o Evaluation method used
o Any other……..

74
4) In which areas of your selling job you need training?
o Selling techniques
o Negotiating skills
o Communication skills
o Product knowledge
o Market knowledge
o Retailing operations
o Consumer behaviour
o Any other………..

5) How many years of experience do you have in selling?

o 0-6months
o 7-24months
o 25-5years
o >5years

6) Your Qualification:
o Below SSLC
o SSLC
o Graduate
o Any other………….

7) Your monthly Income (Rs)

o < Rs 3000
o 3001-5000
o 5000-7500
o 7501-10000
o >10000

8) Does your income include commission or incentive?

o Only fixed salary
o Only commission
o ………….% of commission
o Fixed salary + ……………. Commission.
o Any other………………

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 BILIOGRAPHY:

BOOKS REFERRED:

TRAINING AND DEVELOPMENT

BY GOLDSTEIN
WEBSITES:

www.businessballs.com
www.google.com

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