Operations Management in Direct Sales

This assignment delves into the application of operational management principles within the context of direct sales organizations. It analyzes case studies, particularly focusing on Avon as a prominent example, to explore how effective supply chain management, demand forecasting, and sales force optimization contribute to the success of direct sales businesses. The analysis draws upon academic literature and industry best practices to highlight key strategies and challenges faced by direct sales companies in managing their operations.

SALES PLANNING
AND OPERATIONS
Table of Contents

INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
1.1................................................................................................................................................4
1.2................................................................................................................................................4
1.3................................................................................................................................................5
TASK 2............................................................................................................................................6
TASK 3............................................................................................................................................6
3.1................................................................................................................................................6
3.2................................................................................................................................................7
3.3................................................................................................................................................7
3.4................................................................................................................................................8
3.5................................................................................................................................................8
TASK 4............................................................................................................................................9
4.1................................................................................................................................................9
4.2 .............................................................................................................................................10
4.3..............................................................................................................................................10
CONCLUSION .............................................................................................................................10
REFERENCE ................................................................................................................................12

INTRODUCTION
With the help of sales plan, every organization can easily make their successful
operations within the organization. It also leads to employees towards the objectives of the
organization through various activities (Andersson, Flisberg and Wilhelmsson, 2016). In respect
to this, it can be stated that selling is crucial part of every enterprise. Here, present report is based
on Avon which is working more than 130 years in beauty, innovation and optimising products
for women. It is the fifth largest beauty organization in the world (AVON the company for
women, 2016). In this context, present report covers personal selling which support to the
promotion mix of the organization. Furthermore, it covers comparison of buyer behaviour and
decision making process in different situations. Moreover, it also includes sales strategies that
help to attain corporate objectives. In addition to this, report evaluate the role of motivation,
remuneration and training in sales management. At last, report also develop sales plan for
product and services of the enterprise.
TASK 1
1.1
Promotion mix element of Avon is concerned with various activities that are take place to
make communication effective with customers. In addition to this, distribution channel enhance
sales of the cited firm which promote to the organization (Baier, Carballo and Varshney, 2012).
There are various tools and elements exist for promotion of the company. Thus, following are the
components can be considered within the organization: Advertising: Advertisement can be defined as a presentation and promotion of the
products through sponsor. In this context, Avon cannot directly contact by the customers.
It will assist to cited business as they can capture large market area through one method. Sales promotion: Sales promotion defines as short term incentives which stimulate to
customers for buying a product and services of cited firm (Bjørndal, Herrero and
Weintraub, 2012). In this context, Avon uses many sales promotion activities such as
rebate, discounts, refund and lucky draw.
 Personal selling: In personal selling, Avon sell their products direct to customers
through appoint sales agents in the business. It includes face to face interaction among
sellers and buyer. In this, cited firm can distribute their products personal and impersonal

(Chae and Olson, 2013). Thus, they can make better response of customers towards the
products and services of the organization. As compare to other components, personal
selling give support to each and every customer very carefully. As results, it will
effective to introduce new products in the marketplace.
1.2
There are different types of consumer exist in the marketplace and their behaviour also
differs from each other (Christopher and Ryals, 2014). In respect to this, following are the
different types of buying behaviour can be take place:
 Habitual buying behaviour
 Variety seeking buying behaviour
 Dissonance buying behaviour
 Complex buying behaviour
Above buying behaviour are differs from each other so that customers are separate
accordingly (Ingram, LaForge and Williams, 2012). In this context, Avon can identify their
customers and their buying behaviour and take decisions accordingly. In respect to this, customer
decision making is most important factor for the cited firm. Thus, they take following steps to
make decisions of buyer behaviour:
 Problem identification: In the first step, customer identify their problems and
requirements of products (Lee, Pietz and Burel, 2013). For instance, a person want to
purchase beauty soap then she goes to cosmetic shop.
 Search information: In the second step, customers search information regarding selected
product or services. Thus, woman want to buy soap, she will search whether should she
need to purchase.
 Evaluating alternative: In this step customers identify various alternatives that are
available for purchasing products or services (Lootsma, 2013). In case of beauty
products, female prefer Avon products. In this context, organization can promote their
new product as well.
 Purchase the product: After evaluating various alternatives, customers can take buying
decisions and purchase products. As results, female can buy products from cited firm.
 Post purchase evaluation: Post purchase evaluation is the last step to make decisions
regarding products purchasing (Matta, Chahed and Dallery, 2014). In this, customers can

use other services which have been made by Avon after sales. It will assist to make high
satisfaction level of the customers towards the company products.
1.3
In order to considered sales team, Avon members play very important role in the
businesses (Mitroo, 2015). In respect to this, it will assist to generate high income revenue from
the various operations. Following elements can be considered to make effective transactions
within the enterprise:
Significance
In Avon generating more income is considered to build trust and loyalty towards the
operation of enterprise. In this, various sales people engage their services at all stages. Thus, new
customers need to make interaction and opportunities to create brand of the products and services
(Mwendwa, 2016). Sales team also helpful to work through engaging customers in term of
promotions, discounts and communications.
Types
Avon can determine two types of sales team which help to generate high revenue from
the business transactions. In this, they can determine sales team representatives who are work in
generating sales (Nuss, Sahamie and Stindt, 2015). In addition to this, organization can also
determine self-starters who need little supervision. Beside this, sales telemarketers can make
effective time on the telephone who are making appointment of with organization manager.
Benefits
Sales team help to competing to enhance sales of the organization. In respect to this,
Avon can make loyalty towards the operations so that they can increase revenue from the
workplace (Santa-Eulalia, D'Amours and Frayret, 2012). Further, sales team can use social media
so that they can know about their potential customers easily. Hence, they will promote their sales
easily.
TASK 2
Covered in ppt.
TASK 3
3.1
Sales strategies make sure systematic fundamental aspects through business can achieve
sales targets. In respect to this, Avon form policy formation, order generation, prospect

identification and sales presentation, etc. Thus, following objectives can be considered in the
sales strategies: Enhance customers loyalty: With the help of sales strategies, Avon can enhance
customers loyalty easily (Scott, McIntosh-Scott and Stokes, 2013). In this context,
enterprise can make sure good quality is offer to customers. Cited firm is dealing in
beauty products so that they ensure good raw-material are used to develop the products. Help to promote the product in marketplace: Sales strategies also helpful to enhance
products quality in term of promoting. In respect to this, organization can easily develop
their products in various parts of the country (Smith and Tan, 2013).
 Find the best approach for face the competitors: In order to develop the product, Avon
can use many techniques through they can promote their products. In this aspect, there
are various strategies can be considered by the enterprise such as pricing strategies,
promotional tools and many more things.
From the above explanation, it can be stated that corporate objectives are the internal part
of the company progress which help to give direction for accomplish organizational goals
(Volling, Matzke and Spengler, 2013). In addition to this, Avon has different markets through
they can enhance corporate objectives. STP criteria is better for the chosen enterprise.
3.2
Recruitment and selection procedures are essential components in Avon because success
of the enterprise depends on these aspects. It will assist to select right candidate for the
enterprise. Further, recruitment means build structure through business can easily select ideal
person for the business. Beside this, selection considered appointing most appropriate member
within the organization (Andersson, Flisberg and Wilhelmsson, 2016).
Avon is beauty products organization which operate their functions in various parts of the
company. The company selling various beauty brand products such as shampoo, cream, oil and
many more things. In addition to this, the business growing very fast so that it gives the highest
results within the business. As results, organization can achieve the highest results within the
enterprise. With the help of selection process, company can enhance their sales representatives
who create more sales within the organization. Selection process is also aid in hiring highly
skilled members within the enterprise (Baier, Carballo and Varshney, 2012). Further, it selects

those members who have high experience of knowledge regarding company products and
services.
3.3
Motivation, remuneration and training are the important elements which help to getting
maximum output from the business operations. It means to encourage employees towards the
business objectives. It will also lead to workers of Avon to make their participation effectively
and efficiently for achieve desired outcome. Further, remuneration give monetary benefits to the
customers which is work in term of incentives and bonus (Bjørndal, Herrero and Weintraub,
2012). Thus, employees get in term of exchange their participation. Apart from this, training is
the process through business can develop capabilities and ability of employees towards the
business objectives. In this context, employees work effective and efficiently after gain training
programmes.
In Avon more than 1000 people are working together who are make their participation in
different manner. In this context, they are also differs in term of age, sex, experience and
qualifications etc. (Scott, McIntosh-Scott and Stokes, 2013). Thus, continue motivation is
essential for the organization to motivate their workers towards the operations of the company.
Cited firm can use Maslow's need hierarchy model to motivate their employees towards the
business objectives. In this term, they can determine different employees distinctive need which
would be helpful to develop plan according to organization work. In this context, employees
standards can be determine as basic level need, social need, security need, esteem needs and self
actualization needs. According to different pay scale employees motivate towards the business
operations (Chae and Olson, 2013).
3.4
Sales management is the important aspect which influence to the business to organizing
sales activities. In respect to this, it will helpful to Avon as they can monitor and control the
output of enterprise. In the first step, sales management determine targets and goals for
upcoming time period. Thus, business make their activities according to goals which they have
decided. In this, they considered directions which also require to sales activities and boundaries
for development of the company (Smith and Tan, 2013). In this context, organization can easily
eliminate wastage of the resources from the workplace. Further, in the second step, sales
management consist, sales activities which would be assign to various team members to achieve

desired outcomes. In addition to this, company also make their sales management to make
schedule for all the activities to completing in specific time frame.
After determining second step, third step occur in which sales management monitors to
the whole process to operate correctly or not within the environment (Santa-Eulalia, D'Amours
and Frayret, 2012). At the last step, sales management consist control on the output through push
or pull strategy. Push strategy determine require output by estimation on various data. In addition
to this, pull strategy determine the output by current market demand of the products or market
orders.
3.5
Database is used to make effective sales management techniques for many times. In
present time, it is very important for the business. In this context, it is beneficial for Avon in the
following elements: Identifying the market trends: With the help of database, Avon can easily identify market
trends (Nuss, Sahamie and Stindt, 2015). In this aspect, business can lead with current
market scenario and use strategies for development of the organization. As results,
business can lead with various activities which help them to enhance market share. Support to sales management: Database is also effective system which help to support the
sales management of Avon by making various targets in the enterprise (Volling, Matzke
and Spengler, 2013). In respect to this, cited firm can easily analysis customers
preferences through market research. In this context, management of the organization
will effectively lead to the various tasks of the enterprise.
 Identifying effectiveness of marketing strategies: With the help of marketing strategies,
organization can easily lead with fundamental aspects of the business. In this context,
cited firm can identify effectiveness to monitor the enterprise performance within the
organizational activities (Scott, McIntosh-Scott and Stokes, 2013).
TASK 4
4.1
In order to develop sales plan for Avon, they can offer various products and services
within the enterprise. In respect to this, business serve body care, hair and beauty products to the
customers. Thus, they can sell products and services in various parts of the nation. Company use,
different functions in sales plan and operations. They generally determine preparation of sales

targets, market research and promotional activities, etc.(Volling, Matzke and Spengler, 2013). In
this, they can serve first segment criteria from the marketplace in which target group can be
selected by the company. Ion respect to this, organization determine their target on women of 15
to 50 yr age. They launch herbal lotion in different part of the country for targeting female
candidates. In this way, they can keep high market share through business will achieve more
growth for their organization.
In addition to this, market research is required for collection of information from different
customers about their expectations and satisfaction level (Scott, McIntosh-Scott and Stokes,
2013). For enhance sales of the enterprise business will lead to make effective results from the
various operations. In this context, Avon also formulate ethical and social responsibilities for the
customers to enhance sales of the organization. As results, organization easily maintain their
good relations with customers and employees as well.
4.2
Avon is the largest beauty products selling organization which deliver different kind of
products and services to customers. In this context, they have various opportunities through
business can lead with different aspect of the enterprise (Smith and Tan, 2013). In addition to
this, they can determine various opportunities through serving effective products and services
within the marketplace. In order to carry their opportunities, it can be stated that they can expand
market in international boundary and developing country. With the help of market research
organization can capture various part of the market. In this context, cited firm can make
themselves as multinational company.
From the research found that in developed countries have high demand of herbal
products. As results, chosen enterprise can easily lead with new products which can be develop
in new marketplace (Santa-Eulalia, D'Amours and Frayret, 2012). Beside this, Avon can expand
their business in developing country as well due too much demand of health care products.
4.3
In the trade fairs, different types of products can be arranged and displayed by businesses.
Various customers come and see the products and collect information regarding necessary
products. It will assist to improve quality of the products through fulfilment customers
requirements. In order to carry Avon operations, business can arrange exhibitions and trade fairs.
This is because, main objective of the organization is enhanced their sales in different areas.

Most products of the company make attractive so that customers can easily attracted (Bjørndal,
Herrero and Weintraub, 2012). In respect to this, cited firm design new product that is herbal
lotion is very attractive. In this context, international expansion has been analysed for
development of the products so that company will achieve their targets easily. In addition to this,
company can arrange their trade show to develop their product to target female candidates.
CONCLUSION
From the above report it can be concluded that sales planing and operation consist
important aspect within the enterprise. In respect to this, report analysis effective fundamental
system which help to achieve desired outcomes in the organization. In this report covered,
promotion mix elements through organization can achieve desired results. In this includes
personal selling and advertisement which can be use by the cited organization. In this, personal
selling is the best method for development of the organization products and services.
Furthermore, report included buying behaviour of customers through they can take decisions
whether should by or not the products. In addition to this, report summarized sales plan for
launch the new product in different part of marketplace. In this, report covered successful
operations regarding planning and operations of the company. At last, it explained that business
can motivate their employees towards the firm operations. In this aspect, business can use
monetary and non-monetary methods.

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Online
AVON the company for women, 2016. [Online] Available through:
<http://www.avoncompany.com/>. [Accessed on 23rd November 2016].