Data-Driven Decision Making for Sales and Operations Planning

The provided content discusses various approaches to sales and operations planning (SOP) that incorporate production variability and uncertainty. It includes studies on supply chain management, demand forecasting, production planning, and coordination of physical and financial flows. The papers explore different methods for managing uncertainties such as order configuration uncertainty, spot market dynamics, and supply chain disruptions. They also discuss the importance of integrating SOP with other business functions to improve firm performance.

SALES PLANNING AND
OPERATIONS

Table of Contents
INTRODUCTION......................................................................................................................4
TASK 1......................................................................................................................................4
1.1 Personal selling supports promotion mix.........................................................................4
1.2 Impact of buyer behaviour on decision making process of organisation.........................5
1.3 Role of sales team in marketing strategy.........................................................................6
TASK 2......................................................................................................................................7
2.1 Principles of selling process.............................................................................................7
Planning for new product.......................................................................................................7
TASK 3......................................................................................................................................9
3.1 Developing sales strategies..............................................................................................9
3.2 Importance of recruitment and selection procedures.......................................................9
3.3 Role of motivation, remuneration and training in sales management..............................9
3.4 Organising sales activities and controlling sales output................................................10
3.5 Use of databases in effective sales management............................................................10
TASK 4....................................................................................................................................11
4.1 Developing a sales plan..................................................................................................11
4.2 Opportunities for selling internationally........................................................................11
4.3 Opportunities for using trade fairs and exhibitions........................................................12
CONCLUSION........................................................................................................................12
REFERENCES.........................................................................................................................13

INTRODUCTION
Personal selling is a process through which business organisations use to sell their
products and services with the help of sales people so that they can sell the products to
customers face to face. In this type of selling, presentation and other skills of a sales
executive has a lot of importance so that they can convince buyers for purchasing their
product. Thus, it is a type of promotion as well where customers are induced to make buying
decision through sales person’s attitude, skill, knowledge and appearance (Hübner Kuhn and
Sternbeck, 2013). The present report has focussed on sales planning which is an important
activity based on making a strategy for selling a product or service with the help of sales
people and other activities. The report has discussed about significance of sales planning
along with a number of activities that are essential for an ideal sales planning and strategies.
For this purpose, The Body Shop Company has been chosen on which the report will be
based. In addition to this, sales planning for a new product will be done so that a proper
strategy can be understood for sales and operations planning.
TASK 1
1.1 Personal selling supports promotion mix
The personal selling is a sort of activity which strongly supports promotional mix as it
is a way through which firm sell the products with the help of their employees (Chen-Ritzo,
and et.al., 2010). Here, the major motive of organisation is to understand the needs and
demands of customers more closely. Similarly, the promotion is a process which is intended
to induce the volume of sales. The Body shop Company also takes help of personal selling
for promoting products and services. The close link between personal selling and promotion
mix is combined to so that sales of organisation can be enhanced which is as follows:
Advertisements: Through advertisements, the said company makes communication with
customers so that they can be informed about various new and existing products along with
any special offers and schemes. Apart from this, it is a good medium to give customers
information about product’s quality and features (Meyr, Wagner and Rohde, 2015).
Sales promotion: The sales promotion is also related with the act of promoting goods and
services of organisation so that the sales can be boosted. In stated enterprise, the sales

promotion is done through offering various attractive schemes of discount, premiums and
other attractive offers.
Personal selling: The personal selling is a major activity of promoting the products and
services. Through this activity, the Body shop entity use to establish a direct contact with
their customers. Thus, the company makes personal relations so that customers can be
induced to impact their buying decision more positively (Miller, 2012).
Public relations: The public relation is a way to makes sales through maintaining a closer and
better terms with consumers. This helps in retaining existing customers along with increasing
possibility of making potential customers. This is also a way related to personal selling in
which sales executives directly contact the clients of company.
1.2 Impact of buyer behaviour on decision making process of organisation
The customers have different kinds of attitude according to which their buying
decision is impacted. Different customers have a number of choices and demands because of
which it is necessary for organisations to understand those demands and needs. Thus,
decision making of enterprise also depends very much on buying behaviour of consumers
(Olhager, 2013). In this context, The Body Shop makes a market research according to which
they have determined four types of buying behaviour in customers which are :
 Habitual buying behaviour: In this type of buying behaviour, customers have a low
involvement in purchase making.
 Variety seeking behaviour: This type of buyers’ uses to do more switching between
various brands as they seek large varieties for their desired products.
 Dissonance reducing buying behaviour: In this type of buying behaviour, customers
have a high involvement but with a little preference for brands.
 Complex buying behaviour: The buyers belonging to this type of behaviour are highly
involved in purchase of product with a significant preference for brands.
Apart from this, customers follow certain steps for making a decision according to which
the organisation is impacted which is as follows:
 Identifying problem: At first step, the buyer will identify his requirements and the
requirements of the product (Wang, Hsieh and Hsu, 2012). Eg. Customer might need
a face whitening cream.

 Information searching. In the second step, the customer searches for information
about his required product. Such as consumer would search all the cosmetic
companies and look into what they have to offer.
 Evaluation of alternatives: There are various options a customer has as many
companies with similar products are available in market. Thus customer will try and
evaluate the best suited option for him.
 Purchase of products: After making the evaluation, a customer will make the decision
to purchase the product. He may buy the cream from a good organisation.
 Evaluation after purchase: The customer provides feedback based on the satisfaction
of the purchased product and may provide opinions which may be useful for the
betterment of the product (Wang, and et,al., 2010).
Thus, the mentioned organisation make a study on customer’s and their buying behaviour
so as to design the sakes activity which can successfully establish them in market.
1.3 Role of sales team in marketing strategy
The sales team has a most effective and significant role in Body shop company as
they represent the entire organisation and its products. They play a vital role in enhancing
sales of firm by inducing buyers for making purchase. For this purpose, company recruits
skilled sales persons who are good at presenting themselves and products of organisation so
that buying decision of customers can be impacted to a large extent. In addition to this they
have good communication and speaking skills through which they highlight features of
products in an effective manner that results in making purchase of product successfully.
Further, they have the ability to convert a potential buyer of product into actual buyer to
increase sales of firm (Oliva and Watson, 2011).
In addition to this, the sales team makes better customer relation as they are the
closest person to consumers. Thus, they communicate with the customers and make efforts to
know the demand and need of consumers. This need and demand is communicated by the
sales team to marketing and production department. Thus, it helps cited organisation to
develop its products according to customers’ needs. Further, sales team act as a link between
customers and organisation. The customers of body shop has a trust level as its sales team
keep in touch with them addressing their grievances as well as take care of their needs
(Heizer and Barry, 2013).
Summary

The personal selling is an important task in sales planning and operations as it helps in
boosting sales of company through maintaining direct contact with customers. In addition to
this, the said firm takes various decisions keeping in mind customer’s demands and their
buying behaviour.
TASK 2
2.1 Principles of selling process
The selling process is based on some specific principles where companies have to
make strategies for planning about sales. As per the basic principles of selling some rules are
followed for it which are as follows:
 More listening than talking: The basic principle for selling a product is to listen
customers more than talking about organisation and products (Márcio and et.al.,
2012). The firm can make its products and services better and increase the sales
volume by listening customers about what they want. Thus it will help enterprise to
design their products better according to their needs.
 Relationship building: The sales are more of a process that is related with building
relations with customers. With the help of better and positive relationship with
customers, an organisation can achieve great success and large number of client base.
It can be done with the help of attending customers whenever they need not when
company needs them (Oliva and Watson, 2011).
 Caring: The customers always like to prefer those organisations which are ready to
help them in all the ways. Thus selling principle should not be based on proving their
products better but to show caring and helping attitude ready to serve customers.
 Selling perspective: The selling perspective must follow perception of customers.
Thus, it must be designed as per what customers want and think not what firm wants.
This attitude of organisation helps in attainment of better customer relation and more
brand loyal consumers (Heizer and Barry, 2013).
Planning for new product
As per the present scenario, The Body Shop Company is launching a new sunscreen
which will be offered for a both men and women. This product will be launched b a proper
planning through setting target market, ascertaining marketing strategy etc. as per the budget.

Product: The new Sunscreen which is based on herbal ingredients and rich in vitamin E. The
product contains all ingredients that are rich in caring for skin as well as protecting the skin
from harmful UV rays. The product is made with a formula of milk that gives enough
moisturiser for skin so that it can protect from any damage through UVA and UVB.
The said product is rich in organic ingredients that give good texture to skin with least
antioxidant property as it is made with bio fermentation that fights from free radicals..
Further, the use of product is also very easy which can be applied on skin directly and locks
moisture for 48 hours. It also works as a lotion which gives skin a soft feel along with a
protective layer from damage through sun rays. It has been planned that this range of
sunscreen will be available in different ranges of SPF and various ranges of prices.
Target market: The target market for said product is wide as it is useful for every person who
are more exposed to sun. Thus mainly, this product will be targeted for men and women of
age group from 16 to 50 years age group. Apart from this, as per demographic segmentation,
people who are office going or college students can be targeted more as they have more
possibilities of exposing their skin in sun.
Marketing strategy: The marketing of this product will be done at a greater level as it has a
large target market. As per the target market, the majority of customers will be educated and
modern. Thus, marketing can be done through online advertisements, social networking sites
etc. further, the company has made a plan to make distribution of this product through its
physical outlets as well as from online shopping sites along with its official websites. The
marketing department has planned to avail the product along with a serum for face which can
help in controlling the sticky and oily look of face after applying sunscreen.
Pricing: The price of product must be set at competitive rates which should be able to gain
competitive position. The organisation has made a plan to launch the product with high price
at initial levels. Thus it is adopting skimming pricing strategy as it is most suitable option for
mentioned enterprise. As the brand is quite popular in UK, it can easily set up its product in
market with a high price. Once the company will gain enough profits and cost for the product,
its price can be set at lower cost.
Budget: The budget for all the above procedure has been set with the help of finance
department so that a right allocation of funds can be made. In this planning various top level

managers must make decisions in group efforts so that an exact planning can be done with
less chance of getting losses.

TASK 3
3.1 Developing sales strategies
A sales strategy is determined as a plan that helps in positioning the brand or product
of a company so as to gain competitive edge in the market. Sales strategy formulation is the
process in which most appropriate course of action is selected by an organisation so that
objectives can be achieved. It is imperative that the sales strategies are developed in
accordance with the organisational objectives. The main purpose for developing sales
strategies is getting customer’s attraction and ensuring their loyalty (Wang and Hsu, 2010).
The Body Shop Company has formulated sales strategies in order to widen its customer base
and ensuring that the objectives of the company are accomplished. These strategies are linked
with the goals of the company as they help in ensuring that the objectives of the cited
organisation are attained in a proper manner. The long term objectives of the Body Shop
Company are based on the sales strategies of the organisation and it focuses on
accomplishment of the long term objectives of the cited firm. This helps in ensuring that the
growth of the company is enhanced and also ensure sustainability of business in turbulent
market conditions. Moreover, the sales strategies of the cited organisation are developed so
that more customers get attracted and sales are increased. This helps in enhancing trust and
loyalty of customers which lead in establishing long term relationship with them. Thus, it is
essential that the sales strategies are developed in line with other functions of the cited
organisation which ensures that the objectives of Body Shop Company are accomplished
effectively.
3.2 Importance of recruitment and selection procedures
The process of analysing the needs of the organization for employing people is
recruitment. Selecting a distinct few from such group of people is selection. The Body Shop
Company need people for effective and efficient operation of sales department so there is a
need to employ people through recruitment and selection. The recruitment and selection
process is needed to be done in an efficient manner so there is need to first analyse the
various skills or features required for the sales team and then sales staff is recruited and
selected (Olhager, 2010). As the performance of the cited organization depends upon the
performance of the employees, the recruitment and selection procedure of the cited firm is a
crucial aspect for proper functioning of the organization. Also the employees of an
organization are its most valuable assets. The cited company is offering skin care and
cosmetic products to the customers. It wish to expand its area of operations for which it is
planning to develop a new and more effective marketing plan. This would aid in widening its
customer base in target market so new customers are attracted. Thus, for the attainment of
organisational objectives, it is must that the people are recruited and selected with due care
and skills who would carry out the operations effectively and efficiently to ensure the success
of the company.

3.3 Role of motivation, remuneration and training in sales management
Motivation plays one of the most vital role in improving the performance of the
employees by providing them various incentives. Motivational theories should be taken in
account for motivating the employees (Feng and Pang, 2010). Body Shop Company are using
motivational theories in order to motivate their employees by providing them various
monetary and non monetary incentives. One of the most important aspects of management is
sales management as it helps in raising improving the sales of an organisation. The manager
of the cited organisation is using various motivational incentives for the sales team.
Remuneration is an important incentive for the employees that is provided to them which
helps in raising their satisfaction level. The Body Shop company is providing healthy returns
to their employees in order to provide them satisfaction and hence resulting in achieving the
main goal that is by fulfilling the needs of the employees . Remuneration not only helps in
providing satisfaction but also creates a level of zeal among the employees and hence
ultimately helps the organistaion in compeletion of objective . As various activities are to be
performed by sales team so it is the duty of the company to provide various training and
induction programme for the sales team. The Body Shop company should ensure that proper
training and induction is provided to the employees. It is conducting various induction
programme like on the job training programme with the objective to provide training to the
sales team.
3.4 Organising sales activities and controlling sales output
The most vital function of sales management is organising the activities of sales and
controlling sales output. The sales management of the Body Shop Company adopts a number
of techniques and strategies for effective execution of sales activities and establishing control
over sales output (Monk and Wagner, 2012). The selection of these activities is based on
various factors such as the size of the organisation, sales volume and location of the
company. Budgets are being prepared by the managers of the Body Shop Company. The
managers of the cited organisation focuses on analysing the needs and demands of the
customers. This helps the company to produce such goods that meet the requirements and
needs of the customers. Establishing strong and long term relationship with the customers is
one of the main aims of managers of the cited organisation. For understanding the conditions
of the market, it is essential for manager to evaluate the opportunities in the market. The
strategies are developed after analysing all these aspects. It is important for the Body Shop
Company to ensure that the activities of sales are organised which help in meeting the
demands of customers. Moreover, it is vital that the sales output are controlled so as to
maintain proper balance between sales and demand. This enables the company to assure that
there is neither excess production nor shortage of products in the market.
3.5 Use of databases in effective sales management
The main purpose for using databases by an organisation is to enable it to manage the
sales of the company effectively. A sales management database has been developed by the
Body Shop Company that help in storing the data and information related to the sales of the
company (Chen and Fan, 2012). It is important that the information are managed in a proper
manner for effective management and operations of sales so that the sales of the cited

organisation can be enhanced. The database of the company stores relevant information
regarding the customers and market conditions which enables the management to make
decisions in relation management of sales of the Body Shop Company (Manna, Marco and
Meier, 2011). The database assist the cited firm in collection of information related to
conditions prevalent in the market and customers so that these factors are taken into
consideration in decision making. The databases provides timely and relevant information
and data to the appropriate level of management that help in meeting the needs and demands
of the customers. Thus, it ensures customer satisfaction and maintaining customer
relationship so that their loyalty is achieved. Further, it assists in estimation of annual
turnover of the company and helps in taking such decisions that are required for enhancing
sales and profits of the Body Shop Company. Therefore, using database by the cited
organisation is a great tool for ensuring effective sales management.
TASK 4
4.1 Developing a sales plan
The Body Shop Company is engaged in providing a wide range of cosmetics and
beauty care products in UK. One of the major products of the cited organisation is beauty
cream for women. There is a requirement to develop a sales plan for this product offered by
the company so that the targets and goals can be achieved (Apte, 2010). Ascertaining the
promotion mix is the first and foremost step in forming a plan for sales whereby an
appropriate strategy for sales is developed for the business. Promotion mix encompasses
various tools of marketing that helps to enhance the performance of the organisation. The
cited organisation can use social media as a forum where the promotion of beauty cream can
be done effectively. The company needs to focus on marketing plan so the market conditions
can be analysed. For effective execution of various tasks and activities, they need to be
segregated in a proper manner and assigned to the members of the sales team. Another major
step is analysing the needs and expectations of the customers which is done by conducting
surveys. In the last phase, results are evaluated so that the performance of the business can be
measured and it is ensured that the outcomes are within the budgets developed by the cited
organisation.
4.2 Opportunities for selling internationally
Globalisation can be determined as a process where the organisations carry out its
operations on an international scale (Moon and Alle, 2015). In the evolving marketplace,
globalisation has become an important tool for the organisation to expand the area of
operations of a business. The trend of going international in the global market is increasing at
a rapid pace which ensures sustainability and growth of the business. Globalisation helps the
Body Shop Company to expand its area of operation and it enhances its profitability and
enable it to survive in turbulent market conditions. It provides opportunities for growth and
expansion of the business and enables it to face fierce competition in the market. The cited
organisation is engaged in business of offering beauty care and cosmetic products in the
market and for widening the base of its customers, it is important to go global. This would
enhance the customer base of the company and is a great tool for promotion of its products on

a global scale (Wang and Hsu, 2010). There are numerous benefits that would be availed by
the Body Shop Company including attracting more customers, reduction in the costs,
promotion of the products at global level, combating fierce competition, expanding area of
operations and also the resources are available at cheaper rates. Thus, globalisation can be
used by the cited firm for expanding its area of operations across the globe and sells its
products in the international market.
4.3 Opportunities for using trade fairs and exhibitions
Trade fairs and exhibitions can be used by the Body Shop Company for promoting the
beauty care and cosmetic products of the cited organisation. Trade fairs and exhibitions are
the places that get attention of many people and they gather at these places. So, the cited firm
can plan for conducting such trade fairs and exhibitions where huge crowd can be informed
about the products of the company. This would help in promotion of the products and build
the brand image of the Body Shop Company. Moreover, this would help in gaining a
competitive edge in the market as the name and products of the company are displayed in
front of the society. One of the main aims of the company of establishing strong customer
relationship can be achieved as it help in direct interaction with customers and taking their
feedbacks regarding the products offered by the company (Calfa, Agarwal and Grossmann,
2015). Moreover, it aids in analysing the customer behaviour and ensuring that products meet
the expectations of the customers. These have become an effective tool in the marketing
strategy to widen the base of the customers by spreading information about the products of
the business in the society.
CONCLUSION
It can be summed from this study that sales are the most essential function of an
organisation that ensures success of the company. Marketing and sales strategies are
important for enhancing the performance of the business. Moreover, it can be articulated that
personal selling is an important concept of promotion mix. Further, it is analysed that for
attainment of organisational objectives it is imperative that effective sales strategies should be
developed and implemented in the enterprise. In the evolving competitive market,
globalisation is plays a cardinal role in expanding the areas of operations and widening the
customer base.

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