Market Development and Sales Report: Fisher & Paykel in New Zealand

This report examines Fisher & Paykel's territory management strategy in the lower North Island of New Zealand, focusing on sales and market development. It explores various prospecting methods, including cold calling, networking, seminars, and email marketing, and details the information required for effective lead generation. The report emphasizes the importance of goal-setting, outlining specific objectives for Fisher & Paykel related to geographic reach, account management, product offerings, and service quality. A territory analysis is conducted, considering the population, retail landscape, and transportation infrastructure. A leapfrog territory routing plan is recommended. Finally, the report discusses strategies to enhance customer satisfaction, such as providing excellent after-sales service and competitive commission rates, and providing retailers with marketing support.

Running head: MARKET DEVELOPMENT AND SALES
Market Development and Sales
Name of the Student
Name of the University
Author’s Note

1MARKET DEVELOPMENT AND SALES
Executive summary
The aim of this report is to discuss about the territory management strategy of Fisher & Paykel in
lower North Island, New Zealand. Various actions in order to enhance the customer satisfaction
will also be discussed in this report. The discussion identifies that it is important for the company
to set goals in order to focus their activities and motivate their employees to attain success in the
field. Moreover, it facilitates in measure the progress made over time. The goals should be
properly aligned with the activities and interrelated with each other. The report further discusses
some of the effective prospecting which can bring success to the company if followed. A detailed
analysis of the territory is presented and identifies some of the opportunities for the company and
identifies territory routing best suited for the company.

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Contents
Executive summary.........................................................................................................................1
Introduction......................................................................................................................................3
Methods of prospecting...................................................................................................................4
Information required for prospecting...............................................................................................5
Importance of Goal-Setting.............................................................................................................5
Goals for Fisher and Paykel.............................................................................................................6
Territory analysis and Accounts Classification...............................................................................7
Territory Routing Plan.....................................................................................................................8
Steps to ensure the customer satisfaction........................................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

3MARKET DEVELOPMENT AND SALES
Introduction
In the competitive business scenario of New Zealand especially in the sector of electronic
appliances, it is important for the business organizations to have effective and proper sales and
marketing strategy to attract to more number of customers. Thus, in order to cater to more
customers and effectively determining the requirement of the market, it is important for the
business organizations to divide the target market in various territories and effectively
prospecting each territory (Nahm, Ishikawa & Inoue, 2013).
Fisher & Paykel is one of the leading organizations offering electronic appliances in the
market of New Zealand. However, the increase in the competition in the market is prompting
them to opt for more effective prospecting of the targeted territory. Fisher & Paykel was first
incorporated in 1934 for importing electronic items from abroad and selling them to the
customers in New Zealand (Our History - Fisher & Paykel Appliances, 2017). However, in the
later stage, they have started their own manufacturing facilities and are operating in major cities
around the world. Currently, they are having more than 400 patents with them and their product
portfolio is ranging from refrigerators to induction ovens. However, they do not have their
forward integration and thus, they involves various retailers such as Harvey Norman. Through
them, Fisher & Paykel retails their products in the market.
This report will discuss about the territory management strategy of Fisher & Paykel in
lower North Island, New Zealand. This particular territory will be analyzed and evaluated in this
report in order to determine an effective routing plan. Moreover, various methods of prospecting
to the potential client will also be discussed. Various actions in order to enhance the customer
satisfaction will also be discussed in this report.

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Methods of prospecting
Due to the fact that, this territory strategy will target only the retailers, thus, the following
sections will discuss about the various methods of prospecting.
 Cold calling is the most popular mode of prospecting the potential leads. It is effective for
both the end customers and the business clients. In this case, cold calling will help the
sales executives in catering and reaching out to more number of the retailers possible
(McDonald & Wilson, 2016). Thus, with having the most number of leads, the
probability of the closure of sales will also be more.
 Networking is one of the most effective methods of prospecting. This is due to the reason
that, with the help of the network, relationship with the potential clients will get increased
(Taylor, Mulligan & Ishida, 2012). Thus, with the relationship being positive with the
potential clients, the probability of the closing of ales will be more. This will also helps in
generation of the positive word of mouth.
 Seminar is another method for prospecting the potential clients. This is due to the reason
that, with the help of the seminar, all the potential clients such as Harvey Norman can be
attracted (Jolles, 2017). In addition, in the seminar, they will be the given the
demonstration of the products of Fisher & Paykel and the benefits that they will have in
selling them. Initiation of the seminars will help both the sales executives and the
retailers to interact with each other effectively.
 Email marketing is one of the most effective and old method of prospecting. This method
is very helpful and beneficial in the case of the direct marketing for the end customers
(Salehi et al., 2012). However, in this case, email marketing will help the sales executives

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to communicate with the potential clients effectively and without the intervention of any
intermediaries. Initiation of the email marketing will help the sales executives to
communicate the features of the retailing of the products of the Fisher & Paykel without
having the appointment of them.
Information required for prospecting
In prospecting the target territory effectively, various methods are already being
discussed in the above sections. However, there are various information are required in order to
effectively prospecting the potential leads. One of the important information will be the
demographic details of the targeted territory (Kelsey, 2015). It will help in having the details
about the customer profile in the territory. Accordingly, the prospects will be targeted and
communicated. They will be given the demonstration of the benefits that they will gain from
selling the products of Fisher & Paykel.
Important information that will be required is the preference and business pattern of the
retailers. For instance, if the retailers in the targeted territory source the appliances more on
credit then the prospects should be approached accordingly. On the other hand, if the retailers are
sourcing a particular brand more, then the reason should be determined and prospecting
accordingly.
Importance of Goal-Setting
Goals are the objectives the organization sets identifying expected outcome over a period
of time to guide the employees and keep them on track. It is important for a company like Fisher

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and Paykel to set goals for their business to business operation (Huhtala et al., 2013). Five
important benefits of goal setting for the selected organization are identified in the following:
 The goals will help the organization to focus on the desired outcome.
 It will come handy in measuring progress made by the company over period.
 It will help the company to keep their employees on track and restrict them from
distracting.
 Helps managing time and completing the task on schedule
 It also works as a motivating factor for the employees and also the management.
Goals for Fisher and Paykel
The company can adopt four different goals while operating in the lower segment of the
North Island of New Zealand. The goals suggested for the company are:
Geographic-based Goal – The Company will reach most interior places in the North Island of
New Zealand
Account-based Goal – The Company will increase brand loyalty by sticking to Harvey Norman
and operating through them in the lowers part of the North Island
Product-based Goal – The Company will provide the complete range of household products
and electronic appliances.
Service-based Goal – The Company will provide one year free services to all their products.
These four goals of the company can be related to each other as they are directly linked
with customer loyalty. Following these goals will help the company to increase the customer

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loyalty in both business to business and business to customer approach and one will affect the
other. The high quality service to the customers will satisfy their need and attract them towards
the products (Miner, 2015). Moreover, the company seeks to provide complete range of products
that will enable the customers to find almost every household product in the single retail store.
Further, the company is planning to reach the customers only via Harvey Norman. Hence, all the
goals set for the company will help increasing the customer loyalty and customer satisfaction
(Shinkle, 2012).
Territory analysis and Accounts Classification
The total population of complete North Island of New Zealand is 3,677,200. It is about
70% of the total population of the country. The lower part of the island is composed with
Wellington and half of Manawatu-Wanganui. The accumulated population of the regions is
approximately 754,000. Hence, this is a great opportunity for the company to flush push product
line in the market. The company is dealing with the household products and electronic
appliances, which minimizes the risk of failure as every household will be requiring the products
offered by the company (Stats.govt.nz., 2017).
The Harvey Norman the retail company recommended for Fisher and Paykel to operate in
the proposed territory are one of the strongest in the given area. Moreover, their customer loyalty
is greater compared to the rest of the retail stores operating in the market. Hence, it can
potentially enhance the customer loyalty for the organization and help in pushing the product in
the market. However, the number of outlets in operation in the territory is fewer in number with
the count of four. It makes the selection a bit risky for the company as it seeks to stick with the
particular retailer for addressing the customer market. Moreover, these retail stores are dispersed

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covering a larger geographic area. It enables the company to address a larger population of the
target market.
The transport system on the other hand is compatible to support the transaction of goods
from factory to the stores. The stores around the territory is well connected with the nation high
way makes it easy for the company to deliver the products more efficiently (nzta.govt.nz, 2017).
There are a number of retail stores operating in the market. It makes the competition high
in the market. However, the number of retailers operating with these particular products is less.
Hence, it gives the company a competitive advantages collaborating with the particular client for
operating in lower North Island. In addition, it will also increase the customer loyalty for the
company (Hall & Rusher, 2013).
Territory Routing Plan
The territory routing plan for the organization will follow the leapfrog routing pattern.
The salesperson in following this pattern attends the clusters in a particular area or territory and
jumps directly to the next territory. This pattern is useful for the locations where the accounts or
clients are distributed over a large geographic area, but are apart from one another. The
salesperson has to travel this dispersed area in a straight line. It will prove beneficial pattern for
Fisher and Paykel as their client Harvey Norman is dispersed in the lower part of the North
Island of New Zealand. A total of approximately four stores are located in the lower part of the
island that are scattered over a wide geographical location. Hence, the salesperson working in the
territory will have to jump from one place to another for attending all the stores located in the
territory (Hervert-Escobar, López-Ramos & Esquivel-Flores, 2016). Moreover, the transport
facility necessary for this type of routing in this case is road transport where the salesperson will

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be using light motor vehicle for attending the stores. It is due to the gap between the locations of
the stores.
Steps to ensure the customer satisfaction
 The first step will be to provide the effective after sales service to the customers. This is
due to the reason that, in the case of the electronic appliances, after sales service
determines the satisfaction level of the customers (Kurata & Nam, 2013). Thus, if the
retailer and partners are being given the proper training about the service of their
products, then they will more likely to refer this product to the customers.
 Rate of commission is another criterion to be maintained. Retailers sell the products on
the basis of certain commission from the manufacturers. Thus, commission given or
offered to the retailers should be at par to the market price. Moreover, offering higher rate
of commission to the retailers than the market price will further increase the rate of
satisfaction of the clients.
 Providing products on credit along with initiation of proper and timely follow ups will
help to enhance the level of satisfaction of the customers. This is due to the reason that,
the majority of the business dealing in the current time is being done in credit. Thus, if
the credit is being provided to the retailers properly, then the customers will more likely
to opt for their products. In addition, the satisfaction level of the customers will be also
being increased.
 Providence of training to the retailers will help them equipped to handle the customer
queries and to provide effective service to the customers. Thus, the training can be
provided effectively, and then it will have positive impact on the customers.

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Conclusion
The above discussion identifies that it is important for the company to set goals in order
to focus their activities and motivate their employees to attain success in the field. Moreover, it
facilitates in measure the progress made over time. The goals should be properly aligned with the
activities and interrelated with each other. The report further discusses some of the effective
prospecting which can bring success to the company if followed. A detailed analysis of the
territory is presented and identifies some of the opportunities for the company and identifies
territory routing best suited for the company. The last part of the report is comprised with the
actions proposed for the company to satisfy the customers’ need. Proper implementation of the
above discussion will enable the company to attain competitive success in the given market

11MARKET DEVELOPMENT AND SALES
References
Hall, C. M., & Rusher, K. (2013). Risky lifestyles? Entrepreneurial characteristics of the New
Zealand bed and breakfast sector. Small in Firms Tourism, Michael, HC and K. Rusher
(Eds.). Elsevier Publishing Company, Amsterdam, Netherlands, 83-98.
Hervert-Escobar, L., López-Ramos, F., & Esquivel-Flores, O. A. (2016). Integrated Approach to
Assignment, Scheduling and Routing Problems in a Sales Territory Business
Plan. Procedia Computer Science, 80, 1887-1896.
Huhtala, M., Feldt, T., Hyvönen, K., & Mauno, S. (2013). Ethical organisational culture as a
context for managers’ personal work goals. Journal of Business Ethics, 114(2), 265-282.
Jolles, R. L. (2017). How to Run Seminars and Workshops: Presentation Skills for Consultants,
Trainers, Teachers, and Salespeople. John Wiley & Sons.
Kelsey, J. (2015). The New Zealand experiment: A world model for structural adjustment?.
Bridget Williams Books.
Kurata, H., & Nam, S. H. (2013). After-sales service competition in a supply chain: Does
uncertainty affect the conflict between profit maximization and customer
satisfaction?. International journal of production economics, 144(1), 268-280.
McDonald, M., & Wilson, H. (2016). Marketing Plans: How to prepare them, how to profit from
them. John Wiley & Sons.
Miner, J. B. (2015). Organizational behavior 1: Essential theories of motivation and leadership.