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Sales Management- Example

   

Added on  2019-09-24

20 Pages2755 Words188 Views
SALES MANAGEMENTName of the student:Name of the university:Author’s note:

SALES MANAGEMENTTable of ContentsTask 1...............................................................................................................................................3Task 2...............................................................................................................................................5Task 3.............................................................................................................................................11Task 4.............................................................................................................................................14Reference.......................................................................................................................................17Appendix........................................................................................................................................20

SALES MANAGEMENTTask 1 Gross profit marginCompany name Gross profit marginWoolworths (A)0.2%Tesco (A)0.05%Walmart (A)0.3%From the above table it is found that Woolworths and Walmart have earneda decent gross profit margin with their valuable contributions and their hard work.But, for Tesco it has dropped significantly (Kanapickienė & Grundienė,2015).They could not generate enough revenue through their sales which could haveresulted in a good gross profit margin. Tesco have earned $3018m gross profit. Net profit ratioCompany name Net profit ratioWoolworths (B)38.7%Tesco (B)0.9%Walmart (B)3.7%From the above table it can be seen that Woolworths have earned a decentnet profit through their effective sales strategy. They have generated enoughrevenue from their sales which is around $55475m. However, Tesco and Walmart

SALES MANAGEMENThave failed to earn a decent profit due to lack of their lower revenue generationproblem and high cost involvement during sale processes (Goy & Bhatia, 2016). Return on capital employedCompany name Return on capitalemployed Woolworths (C)0.4Tesco (C)0.1Walmart (C)0.2Mark up The main difference in margin and mark up is summed up as the totalmargin of sales which is subtracted from the cost of goods sold. On the other handmark up is something used by the retailers to increase the cost of the product sothat the selling price of the goods is derived easily. Retailers need to focus on thesetting of the price otherwise it may back fire and lead to heavy loss. This mark uppricing is used because it leads to changes in pricing over the margin based pricing.This is because the price on which the marked up price is relied upon varies fromtime to time and could lead to different prices at different stages of the product(Wong & Joshi, 2015). Thus it lacks proper pricing methods which could becharged by the companies to earn a healthy and decent amount of profit. Markedup price will always be higher than the marginal pricing.

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