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MAR205 BY ORMORELIOO PREPARED FOR: Dr. Lycourgos HadJtphants Course: MAR Domestica Ltd, is a company established and commenced operations in 1957 by its founder and acting Managing Director, Demetri N. Hadjioannou. In early stages, the Trading Company concentrated on imports and the subsequent wholesaling and distribution of Domestic Appliances & Consumer Electronics.
The particular firm, pioneered in its field with an aggressive marketing and strong dealer distribution network, covering the entire island, which emerged the way for its future expansion nd achievement status As one of the first ‘registered’ Companies in Cyprus, the registration number 40, was given to Domestica Ltd by the Republic of Cyprus. Domestica went through tough chronic periods such as the war and economical upsets but it managed to overcome these difficulties and flourished to become a strong and successful company.
Currently, the Commercial side of the Company has expanded drastically in size as well as in representing products and brands that cover more of the market’s vertical price structure, always focusing on high product quality and reliability. Moreover, it has further improved on fast and reliable Customer Services and satisfaction as well as on innovative and promotional marketing practices and relations. Recent changes in systems operations and distribution have propelled its way in its field, as one of the most effective importing, retailing support and wholesaling distribution firms locally in the Appliances field.
It represents one of the best and more competitive ranges of quality appliances in Cyprus. Domestica provides products and services that meet the requirements and business needs of of wholesale and retail customers. The dedicated employees, empowered and accountable for decisions at the local level, work side-by-side with the customers every day in the stores and markets where the products are sold. The company demonstrates their appreciation by providing them with high quality products, sale service and guarantee.
T Goal is quality, service, trust and value tor each and every customer, each and every time. Domestica main strategy is to deliver on right time to the right price and provide after sale service. It can achieve this by providing international service to all their brands, 2417 all over Cyprus. A university degree in marketing and 25 years of related experience and training in different marketing sections . Problem-solving and analytical skills to take sales performance and market trend information. Proven ability to motivate and lead the sales team.
Experience in developing marketing and sales strategies. Excellent oral and written communication skills, plus a good working knowledge of Microsoft Office Suite. He started of as anyone else would, from bottom. He initially landed a Job as a salesperson at a small company. From experience he has learned that ???selling” is not s easy as it seems and requires unique skills and effort. For years as a salesperson he was monitoring competition by gathering at the time marketplace information on pricing, products, new products , delivery schedules , merchandising techniques, etc.
Later on he proved to be the suitable person for the sales manager position. He currently manages a sales team of 4 which works within a standardized process which defines how to approach, qualify, work with and close the customer. As a sales manager he believes that with clearly aligned goals, all activities can be uickly evaluated, activities that don’t support these goals can be eliminated or uptated to bring them into alignment. In order to motivate and lead his salespeople effectively, he likes to think about what’s important to them and what drives them.
He avoids rulemaking because from past experience he knows that salepeople generally want freedom ,compliance doesn’t work with these people, they want autonomy. Removing this obstacles and trying to set them up to produce results is his goal. One of his management styles is to give his team {pats on the back}. He says you need to ecognize them” especialy with top-perfoming salespeople, money isn’t always the main driver, its often about being respected. Its achiving and getting those results. If you adapt your management style to meet their needs, and understand the behaviors needed to do it, you’ll have a lot fewer headaches.
And your salespeople will thrive. Once a week he conducts a meeting with his team that lasts from 2-3 hours to disguss bussines, current products and deals, how they are performing and solving any problems at the time. Besides the meeting he spends amounts of time very day with his reps to monitor on how they work and to adjust them if necessary but most of the day he is in the office dealing with office paperwork which is usually a lot. One of the more important tasks in supply-chain management is improving forecast accuracy. Because your investment in inventory is tied to it, forecast accuracy is critical to the bottom line.
If you can improve accuracy you can reduce the safety-stock levels needed to reach target fill rates. KEY POINTS Tracking aggregate forecast accuracy over the range of skus provides insight into your organizations overall forecasting process. Aggregate accuracy metrics help to identify systematic changes in your forecast process, either from intentional improvement efforts or as a result of environmental forces. The key steps involve determination of the appropriate (a) forecast-accuracy metric, (b) kevek if aggregation, (c) process attributes for storage, (d) targets for accuracy improvement, and (e) weights to be applied to targeted SWs.
Retaining key attributes from your torecasting process provides a ???torecasting autopsy’ witn explanations tor tailing to meet forecast-accuracy targets. An important aid in identifying the routes to mproved forecast accuracy. Sales managers have to forecast frequently and considering combination with current inventory and supply capacity, enabling leaders from sales, marketing, operations and finance to reach consensus on demand and supply, and on what can be made available to promise. The output of this data is one consolidated plan in such a level of performance which is achievable.
Conducting forecasting and being able to be accurate and with good results is more easy with forecasting tools which are highly recommended and used by the sales manager. To name a few of the tools the manager is using is Zoho CRM witch is web related ,Plan guru and the most common method they use in the company is the Delphi method. Zoho CRM: (which has a sales forecasting utility built in) helps you study your lead generation methods, figure out where prospects are in the sales stage, evaluate competitors and figure out what’s working in every aspect of your sales process.
Plan guru: is the type of desktop software (which isn’t web-based) that you need when you want to go deeper than your basic accounting package will allow. Users can build the usual integrated balance sheet, income statement or statement of cash flow without any special formulas. ou can build projections around different scenarios to see what will work best for your company Delphi method has the following steps. STEP 1 – Various Experts are asked to answer, independently and in writing, a series of questions about the future of sales or whatever other area is being forecasted.
STEP 2 – A summary of all the answers is then prepared. No expert knows, how any other expert answered the questions. STEP 3 – Copies of summary are given to the individual experts with the request that they modify their original answers if they think it necessary. STEP 4 – Another summary is made of these odifications, and copies again are distributed to the experts. This time, however, expert opinions that deviate significantly from the norm must be Justified in writing. STEP 5- A third summary is made of the opinions and Justifications, and copies are once again distributed to the experts.
Justification in writing for all answers is now required. STEP 6 – The forecast is generated from all of the opinions and Justifications that arise from step 5. After he confgures the new sales plan he has to delegate the tasks to salespersons into the day-to-day activates, analyzing and explaining the new ales plans . Once a week he evaluates all the salesperson by making sure that everyone is following the plans and goals are set. A sales organization is responsible for the sale and distribution of goods and services. It represents the selling unit as a legal entity.
It is responsible for product guarantees and other rights to recourse, for example. Regional splitting of the market can also be carried out with the help of sales organizations. Each business transaction is processed within a sales organization. The sales organization must be specified in all sales documents. A ales organization can be subdivided into several distribution chains which determine the responsibility for a distribution channel. Several divisions can be assigned to a sales organization which is responsible tor the materials or services provided.
A sales area determines which distribution channel can be used to sell the products from one division in a sales organization. Clarifying the role of marketing and sales We determine what role marketing and sales plays within the organization before helping evaluate how best to link it with other areas of the business to achieve strategic goals. Taking marketing “beyond the marketers” We work with clients to energize the entire organization from finance to operations to engage their customers across proliferating media and interactive channels within the rapid time cycles digital media demands.
Domestica realizes that it needs to be able to meet the ever changing demands of the customers. Certain divisions of the company, such as finance, human resources, innovation, marketing, and strategy and planning are centrally located within the corporate division of the company The Domestica Company realizes that a divisional structure gives the organization the est opportunity to react to the changes in its uncertain environment, but also allow it to maintain a level of stability.
The core competences that give the organization its best competitive advantages are its strong brand name and at times provides the retailers and distributors with promotions POSITION OVERVIEW The Director manages support functions essential to sales force productivity. These include planning, reporting, quota setting and management, sales process optimization, sales Job design, sales training, sales program implementation, sales compensation design and administration, and recruiting and selection of sales force alent. The Director is responsible for the overall productivity and effectiveness of the assigned sales organization.
Reporting to the President also works closely with internal and external stakeholders to ensure the appropriate objectives and priorities are enabled within the sales organization supported. JOB RESPONSIBILITIES Coordinates sales forecasting, planning, and budgeting processes used within the sales organization. Proactively monitors and strives to maintain high levels of quality, accuracy, and process consistency in the sales organization’s planning efforts. As eeded, coordinates planning activities with other functions and stakeholders within the firm.
Supports the equitable assignment of sales force quotas and ensures quotas are optimally allocated to all sales channels and resources. Works to ensure all sales organization objectives are assigned in a timely fashion. Proactively identifies opportunities for sales process improvement. Works closely with sales management to inspect sales process quality and prioritize opportunities for improvement. Assists sales management in understanding process bottlenecks and inconsistencies. Facilitates an organization of continuous process improvement.
Monitors the accuracy and efficient distribution of sales reports and other intelligence essential to the sales organization. Recommends revisions to existing reports, or assists in the development of new reporting tools as needed. Provide input to senior leadership in the development and administration of sales incentive compensation programs. Domestica’s sale expenses are quite a few since the company has to deal with day to day activities, sales people must travel a lot thus this means auto, meals, ccommodations and also office equipment and supplies.
The company has to cover gas expenses in order for the salespeople to travel. Salespeople have to travel often in order to make their sales, go review a product or if they have a meeting with a client. Since they travel almost daily the bills for the gas sums up to a large number at the end of the month. Now and then salespeople have to travel overseas for their work accommodations are needed as well as food. The company has to pay for their air tickets, accommodation at a hotel and their meals. The office equipment.
In order or the company to operate they have installed a wide range of IT (information technology). Business telephone lines and active internet, computers, faxes and printers. They also have a wide selection of office furniture, couches, sofas, desks chairs etc. As the sales manager says ???having good furniture benefits your health, working practices and can even reduce the cost of employing and retaining staff. Who likes to work in a horrible environment? ‘ Last but not least are the supply expenses.
The company has a high demand in supplies thus each month they have a lot of supplies coming in. The company’s policy is always to have extra supplies reducing the risk of not making a sale because they didn’t have the current supplies at the time being. More in general the company has a lot of expenses since they are involved in a variety of sections as you can see. Effective quota and territory management is a critical initiative for any organization trying to drive sales transformation or reduce operational costs.
To optimize the performance of sales teams, it is essential to effectively determine and communicate quotas and territories, and then track channel and sales representative target approval. Without equ table quotas and territories, you can miss out on significant revenue opportunities by overburdening particular sales professionals and underutilizing others. Today Domestica defines a territory as a set of accounts segments, industry verticals and geographies with products as a cross section.
By defining a territory as a set of accounts within a certain industry and size, it makes it easier to establish which products are sold and how to set quota. By analyzing those accounts over time, it establishes the characteristics and the proper quota for each territory. Sales quota nd territory management software that refines business practices for territory sizing and balancing. Territory quota formula, and a seasonality factor group to apply to all territories. Territory options override sales quota plan options.
For example, the territory quota formulas and seasonality factor groups selected for individual territories override the formulas selected for all territories. The administrator can also set a threshold percentage for adjustment amounts that managers often add to quotas. In this figure, the assigned quota gets distributed over each month through easonality factors that raise or lower quota amounts according to seasonal fluctuations. When the sales managers create new proposed territories, such as for territory realignment, can enable the setting of quotas for the proposed territories by selecting Eligible for Quota.
Then associate the proposals to the quota plan, and the proposed territories within the current active territory hierarchy, and salespeople will be able to assign quotas to the proposed territories. We have now studied and analysed the company in depth and we have drawn a general image in our minds about the positives and negatives that the company ossesses. What we think they are doing right and wrong, were do they need to focus more, budgets that need to be cut and problems that need to be terminated.
After conducting a research on the company and industry background, description of the sales managers position, sales planning and forecasting, organization of the sales function, sales expenses and territory assignments we have come up with the following conclusions. Management style: Our personal opinion is that in general the company’s management style is correct and gives a positive outcome to the company, playing a big role in the company being successful. The company’s policy is to provide high quality products at a decent price and that certainly gains good reputation as well as respect from customers and generally the environment.
The thing that we would change in management strategy is we would try to put up more special offers example(with every washing machine you get %50 off a dish washer) because in a period of crisis which we are currently experiencing this would attract new potential customers that see our company as more beneficial to them instead trom there regular one. Also we believe they should try to think out of the usual, meaning they hould try to think of other methods than those they are using to attract new customers and potential clients. Trying to sell some of their stocks would Olso be a wise action as it would raise the company’s value.
In-work relationship: As we have seen the relationship between management and reps,employees is quite healthy. Recognising them when needed and trying to motivate them certently gives back a big positive outcome to the relationship between them. Trying to understand them and always bearing in mind he’s reps with respect is a wise method but we disagree on the rulemaking section. We believe that some rules would be more beneficial for the company since with no rules you never know how your employee will react to a specific situation.
Establishing rulemaking would also make the reps fear (in a good way) making mistakes or something they would otherwise do that they would not. Sales planning and forecasting: We think that the company is doing well with planning and forecasting since their methods and IT (information technology) used is up to date and seems to be as accurate as much as possible. The only thing we would recommend is that if we were management we would always try to test other orecasting methods and different planning to see the different outcomes we get so we can have the best possible results we can.
Especially in the time we live we have seen that the market has been more unstable than ever and you never know what you can expect. Organization of the sales function:The coordination of the sales function, as well as monitoring the accuracy of its effectiveness is in inlignment with the companys objectives and seems to work Just fine. Their good timing seems to ensure all sales organization objectives are met. Sales expenses:We personally believe that in this case the expenses of the ompany should be less from the current state.
We suggest they find away for effective budgeting. The company cant know for example if a salesperson in driving to his meeting and in between not making a stop some were else irrelevant to work thus auto expenses are wasted on non Job activities. For all expenses they should give a budget that is known to all employees that if they exceed that amount it will be cut of from their salary and with this method they owne employees will try to economize instead of being careless and reckless because it is the companys expenses and not their own.
These are our final conclusions on the matters involved with Domestica company and we hope that one day we can be at a position able to put our thoughts and visions into act. Interview: What is your background(educational sales experience,managerial,marketing etc.? I have a university degree in marketing and 25 years of related experience and training in different marketing sections . Problem-solving and analytical skills to take sales performance and market trend information. Ability to motivate and lead the sales team.
Experience in developing marketing and sales strategies. Excellent oral nd written communication skills, plus a good working knowledge of Microsoft Office Suite. What are the primary responsibilities of a sales manager in your firm? ??? Meet sales goals, increase market share and strengthen current business relationships. ??? Execute timely business development forecasting formulated from customer focused Sales strategies. ??? Ensure new dealers satisfaction in coordination with sales and marketing directives. ?? Meet and exceed the Company’s strategic objectives and sales goals What special skills abilities knowledge are required to be a sales manager? The ability to prospect and create business opportunities, the ability to identify prospects’ needs, and ability to close the sale. A sales manager is required to know how to act as a leader in order to manage coach train and mentror those around him. What are ethical and legal responsibilities of sales manager?
Ethical responsibilities are a set of moral principles and values that governs the behavior of person or a group with respect to what is right and wrong. The legal responsibilities is that a sales manager has to fulfill their economic goals within a legal framework. What corporate and product strategies most directly affect the role of the sale force? Most important is the strong name brand we have which sometimes the brand name sells on its own and the strong sale force that is very well trained. Is the sales force a key strategic asset to your company’s success? Why or why not?
Yes it is because an effective sales force strategy is critical to achieving sales targets and aligning the sales force with the strategic direction of the firm. I am able to craft strategy and communicate it to the sales Team in order to win the right kind of business and chieve growth targets for the business. How does your sales force strategy compare to that of key competitors? We have a very good reputation all over Cyprus, our products are very different in design and quality from others, and that’s why our prices are Justified and so you can experience luxury products.
That’s why we have the name! How is the sales force budget established? Has the budget increased or decreased recently? Why? We are very careful with our budget and we take precautions like planning ahead for sales training spending by identifying training targets and the aterials or activities to support sales growth through training andtaking steps to ensure that the sales training budget is not reduc ed in tavor ot other activities that might not have the same benefit. Bibliography Aghion, P & Durlauf, S (eds. 2005, Handbook of economic growth, Elsevier, Amsterdam. [4 November 2004]. Available from: http://www. calliduscloud. com/sales- territory-and-quota-management/ Available from :http://www. infoentrepreneurs. org/ en/guides/forecast-and-plan-your-sales/ Available from: Holt, DH 1997, Management principles and practices, Prentice-Hall, Sydney. Available from: http://www. hrm. org/ TemplatesTools/Samples/JobDescriptions/Pages/CMS_004207. aspx Available from: http://www. adaptiveplanning. om/products/planning/ Available from: http:// www. manh. com/solutions/planning Available from: http://blogs. salesforce. com/company/2013/0115-tips-for-building-a- winning-sales-organization. html Available from: http://www. wikinvest. com/stock/ Target_%28TGT%29/Cost_Sales_Selling_General_Administrative_Sga_Expenses Available from: http://www-03. ibm. com/software/products/en/cognos-territory- management/ Available from: http://help. salesforce. com/apex/HTVlewHelpDoc? id=territories def. htm