Sales Planning and Operations Report: M&S Sales Strategy and Analysis

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This report provides a comprehensive analysis of sales planning and operations within the context of Marks and Spencer (M&S), a prominent clothing retailer. It begins by examining the role of personal selling within M&S's promotional mix, emphasizing its importance in understanding customer needs and building direct communication. The report then explores the influence of buyer behavior and decision-making processes on M&S's sales, highlighting factors such as competitor strategies and social, cultural, personal, and psychological influences. The role of the sales team in the marketing strategy is detailed, covering distributors, brand awareness, objection handling, commitment development, and customer targeting. The report continues by discussing the development of sales strategies aligned with corporate objectives, the importance of recruitment and selection, and the role of motivation, remuneration, and training in sales management. It also addresses organizing sales activities, controlling output, and the use of databases. Finally, the report develops a sales plan for a product or service, investigates opportunities for international selling, and explores the use of exhibitions or trade fairs for sales. The report concludes with a summary of the key findings and recommendations for enhancing M&S's sales performance.
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SALES PLANNING AND
OPERATIONS
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TABLE OF CONTENTS
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Introduction..................................................................................................................................3
1.1 Personal selling and promotional mix...................................................................................3
1.2 Effects of buyer behaviour and decision making process......................................................4
1.3 Role of sales team in marketing strategy...............................................................................5
Conclusion...................................................................................................................................5
TASK 2............................................................................................................................................6
Enclosed in ppt.............................................................................................................................6
TASK 3............................................................................................................................................6
3.1 Developing sales strategies with corporate objectives..........................................................6
3.2 Importance of recruitment and selection...............................................................................6
3.3 Role of motivation, remuneration and training......................................................................7
3.4 Organising sales activity and controlling output...................................................................7
3.5 Use of databases.....................................................................................................................8
Task 4...............................................................................................................................................8
Introduction......................................................................................................................................8
4.1 Develop a sales plan for a product or service........................................................................8
4.2 Investigate opportunities for selling internationally..............................................................9
4.3 Investigate opportunities for using exhibitions or trade fairs..............................................10
Conclusion.....................................................................................................................................10
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REFERENCES..............................................................................................................................11
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INTRODUCTION
Sales planning and operations is a business function that helps in handling distribution
and sales of a product or service that is developed by a company. Marks and Spencer is a
clothing retailer that has British origins. The standards set by this organisation for production of
clothes and retail outlets has inspired businessmen at all the levels. In this report, basic
information regarding sales and operations planning of organisation has been provided. The
importance of sales management and operations will also be demonstrated in this assessment. A
sales plan and certain investigations regarding sales opportunities of a clothing line of M&S are
also depicted in this report.
TASK 1
Introduction
The role of personal selling in the marketing strategy of an organisation has been
depicted ahead. It is important to understand this link so that effective action plans can be
executed for obtaining the enhanced sales and better customer base.
1.1 Personal selling and promotional mix
Promotional mix is a strategic tool that helps in understanding the techniques which are
to be implemented for marketing products and services of company. Marks and Spencer uses
promotional mix with components that are mentioned as follows:
1. Advertising both online and offline
2. Developing public relations
3. Sales promotion
4. Personal selling
One of the most effective methods for achieving promotional mix is personal selling. It
helps in assessing specific needs of customers individually. Communication between
organisation and consumers is direct and smooth when it comes to personal selling. Marketing is
a medium through which benefits and features of products and services of organisation are
delivered to the customers in an innovative way (Cummins, Peltier and Dixon, 2016). Personal
selling has an important support in this strategy.
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Employees are appointed with particular segments of customers so that constructive
dialogue is initiated and better communication of current products would take place. This task
involves a huge amount of capital investment. Being a significant part of the sales operation, this
function cannot be ignored by M&S. Personal selling has an advantage of being scalable and
measurable. This feature enables analysts to develop future predictions or sales forecasts for the
concerned products or services (McClaren, 2013). Other supports which are given to the
promotional mix of product through personal selling is flexibility. Despite of these many
benefits, the inconsistency which occurs with this type of operations leads to failure of sales
strategy.
Personal and impersonal communication both holds much importance as that not only
leads to product selling; but also it ensures to meet the requirements of customers. At the same
time, it can also be said that while carrying out the personal selling activity, organization needs
to specify the objectives of promotional activity as well. In this way, chief emphasis shall also be
laid on push-pull strategies to enhance the market competency and business capabilities. Marks
and Spencer needs to integrate all the promotional activities with organizational practices so as to
enhance the sales ratio.
1.2 Effects of buyer behaviour and decision making process
M&S stands on a very strong position in the international markets when fashion and
clothing industry is considered. There are certain aspects which still can affect its functioning.
These include buyer behaviour and the decision making process. Consumers are centre for the
growth of company. Henceforth, it becomes essential to develop products in such a way that
demands and needs of purchasers will get fulfilled (Karimi, Papamichail and Holland, 2015).
Buyer behaviour and decisions are greatly influenced by the products and pricing strategies of
competitors. For instance: Tommy Hilfiger is the major competitor of M&S. If customers find
the products and services of Tommy more affordable and interesting as compared to M&S, then
purchases will be made according to this preferable choice.
There are various factors which influence buyer’s behaviour and decisions. Social,
cultural, personal and psychological factors are some of these which directly affect the choices
and purchases that an individual makes. Hence, sales operations have to be planned by
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amalgamating marketing strategies smoothly so that the impact of buyer behaviour and decision
making would prove to be quite positive over the functioning of company (Kuvykaite, Dovaliene
and Navickiene, 2015). Price and attributes of a product are two criteria which influence the
buying behaviour. Hence, M&S needs to focus on creating strategies which will help in
attracting more customers.
There are several factors that changes the decision making aspects of consumers such as
personal, social and psychological and all such forces usually leads to purchase of products. But,
at the same time along with external factors, there are various internal factors as well that leads
to changes in purchase decision making process. Demands of customers usually get influenced
because of decision making unit which includes varied variables that impedes company’s sales
and profitability.
1.3 Role of sales team in marketing strategy
Sales team in M&S plays a significant role in the marketing strategy of company. These
roles have been depicted as follows: Distributors: The technique through which products and services have to be delivered or
communicated to customers is planned and depicted in the marketing strategy. But the
medium through which these have to be distributed is not specific. Sales force or field
reps perform this task. They carry out the execution part of marketing strategy which
involves appropriate distribution of products and services. Brand awareness: Small and medium businessmen that are linked with M&S have to be
well informed about the strategies and products of company. This function of
professional communication and brand awareness among customers and merchants is
carried out by sales executives (Gluck, 2017). Reducing objections: There are different types of objections faced by organisation
whenever a product or service is launched. Salesperson cannot be intimidated by these
objections and he/she has to implement certain tactics for answering and overcoming
these oppositions. Developing commitment: Most important component of smooth organisational
functioning is commitment and integrity. Sales-force plays the role of binder and
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develops commitment of company towards its customers and clients through the best in
class products and services.
Targeting: The potential customers of company have to be targeted and positioned by
sales people according to marketing strategy. It helps in increasing customer share and
also, helps in developing an insight about the effectiveness of marketing strategy.
Sales team of Marks and Spencer is required to focus on competitor’s products as well so
that customers can be associated with company only. This also holds more importance in roles
and responsibilities of sales team. Further, sales team is required to keep records in the database
so that areas of improvements and modifications can be found out. Further, there should be
proper communication among the sales team and customers.
Conclusion
Through this assessment, one can easily understand the importance of sales in developing
an effective marketing strategy. Moreover, the impact of buyer behaviour and decisions on the
functioning of M&S is also depicted. Above all, it is important to have personal selling team in
an organisation so that one-to-one contact with the firm can be made.
TASK 2
Enclosed in ppt.
TASK 3
3.1 Developing sales strategies with corporate objectives
Business organisations develop corporate objectives so that a well-defined path can be
obtained. This further helps in building up other operations and functions of the company. M&S
has a corporate objective of attaining a strong position in the market with best quality products
and services. Sales strategy is a medium through which net profit acquired by the selling of
products and services can be estimated (Gounaris, 2016). Corporate objectives are considered as
the statements which reflect strategic intent of an organisation. The sales strategies can be
developed in line with corporate objectives when following attributes are followed:
Consideration of client or customer demands.
When focus is shifted from profits to customer loyalty.
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Target and short term goals reflecting the market demands.
Aforementioned aspects helps in developing a sales strategy and plan according to the
corporate objectives of M&S. The company can meet the minimum sales requirements only
when the objectives are accurate, appropriate and relevant to the ones defined while developing
corporate strategy.
There must be proper alignment between sales strategies and corporate objectives of
Marks and Spencer as through that only, business value can be enhanced. Thus, in this respect
marketing objectives should be developed through considering corporate objectives of the
business entity. Sales strategy should also focus on forecasting so that Marks and Spencer can
make planning accordingly. At this stage, Marks and Spencer is also required to make different
strategies for selling for overall profitability of the company.
3.2 Importance of recruitment and selection
Human resource is the only thing that drives an organisation. M&S being a retail sector
organisation has to perform recruitment and selection process so that business can be developed
by utilising more skills and knowledge. There is a huge impact of effective recruitment and
selection on the functioning of company. Apart from improvements in competencies, the
company can experience significant increase in speed of achieving goals and objectives.
Responsible and reliable candidates bring in greater developments and profitability (Johnston
and Marshall, 2016).
The recruitment and selection process has a crucial part that is preparation of job
descriptions and person specifications. These two attributes communicate the entire requirements
of the company to the eligible candidate. Further, the criticality increases when preparation
techniques are efficient enough. The use of proper monitoring and supervision helps in creating
an efficient work pathway for M&S. Since, all these attributes are interlinked with the entire
process, it is important for the company to develop an efficient recruitment and selection process.
Sales management is also comprised of the individuals that work for the company but
have specific skill sets regarding sales planning and implementation. The selection and
recruitment when performed correctly brings in huge benefits for M&S. The reputation of
company shall improve in the eyes of clients and customers. Moreover, the resources applied for
development of these candidates will not be wasted.
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3.3 Role of motivation, remuneration and training
Sales management is considered to be more efficient if following attributes are
considered:
Motivation: The manager of leader who is guiding and leading the sales force has a
responsibility of developing motivation and enthusiasm amongst the team members. Sales
management when instigated with motivation brings in can improve productivity and
profitability. Employees will be more willing to work and put in more efforts to help M&S
achieve its goals and objectives. Target setting and team building exercises shall be introduced
for motivating the individuals. Appraisals and incentives which can be financial or non-financial
based on the capabilities and service quality of the employees are one of the primary methods of
boosting morale and increasing motivation.
Training: Skills and knowledge are the only things which are helpful in utilising every
other resource for the company. M&S can enhance sales management when training is provided
to individuals depending on their current needs and requirements. When knowledge level of
employees is increased, they will find innovative techniques of performing their tasks and other
business operations (Aydin and Kaya, 2016). Training should be provided to employees with
specific products and they must be equipped with knowledge regarding development of sales
manual. These dimensional attributes help in continuous professional development in M&S. The
company must focus these through on the job training.
Remuneration: Majority of employees working in M&S are influenced by remuneration.
The amount paid to employees for providing specific services is considered as remuneration.
Commission, compensation and performance linked incentives are some of the techniques which
can be introduced as a part of sales management for enhancing employee motivation and
productivity (Gounaris, 2016).
3.4 Organising sales activity and controlling output
Sales output is the figure which determines the volume of products that have been sold in
a particular time frame. Sales management has to organise sales activities for M&S and
determine regular outputs so that effective control measures can be adapted. Trade fairs or
exhibitions are considered as the most convenient sales activity for the company. Sales
management organises sales activity in trade fairs by rigorously advertising organisation's brand
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name and products (Importance of Effective Recruitment & Selection, 2017). Particular
representatives are allocated specific duties which are for controlling the sales output.
These representatives are given targets and deadlines which needs to be met for attaining
incentives. These goals help in separating tasks according to their priorities and consequently
there is no confusion created. Major focus of every sales representative is to judge the body
language of prospective customer and then promote the products respectively by targeting on
specific needs and requirements. M&S can have smooth sales operations through this type of
sales management activity.
3.5 Use of databases
M&S is a multinational organisation. This determines that the amount of production and
number of customers are some figures which cannot be calculated or maintained manually.
Computerised systems have been initiated for bringing in more ease and convenience in
maintaining huge volumes of records and data. Database is one such computerised system. Cloud
computing and Big Data are also one of the most popular data management software which are
efficient in handling large volumes of information efficiently (The Advantages of a Sales
Database, 2017).
Sales management can be aided if M&S uses databases for maintaining information
related to transactions or customers, etc. Moreover, inventory control is another significant
feature which is gained by company when databases are implemented. Apart from these
advantages, the company can witness improvements in scheduling and profitability when using
databases.
TASK 4
INTRODUCTION
The present section of the research study has been emphasizing on a sales plan that is
useful in promoting a specific product and service. Thus, in this respect several promotional and
marketing strategies are being discussed through which the business will enter in the market
place. In addition to this, discussion has also been included regarding selling the products
internationally through exhibitions and trade fairs.
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4.1 Develop a sales plan for a product or service
In order to promote M&S Apple Juice, it is essential for the business entity to focus on
suitable sales plan (Cheung and Prendergast, 2006). This is not only useful in generating
awareness among customers; but also it helps the business entity to capture larger market share
in retail sector. The plan includes the following things:
Mission
Mission statement of the company has been developed for the purpose of specifying what the
company wishes to achieve through bringing this new product at market place. Thus, according
to the mission of the company, M&S Apple Juice is also introduced for the purpose of meeting
changing needs of customers.
Aim
The main of bringing M&S Apple Juice at the market place is to enhance the sales and
profitability aspects of the business especially in grocery department.
Objectives
To focus on quality aspects so that business success ratio can be enhanced
To enhance the profitability factor of M&S through development of new products To amend the customer base ratio
Strategies
It is essential for Marks and Spencer to emphasize on new product development strategy so that
new products can be suitably developed through adding several new elements in the existing
product line (Chen and Huddleston, 2000). At the same, chief emphasis should be given on
promotional strategies so that M&S Apple Juice can be promoted among the customers in the
best possible manner. This is also crucial in terms of enhancing customer base. This is also
essential in terms of enhancing brand image of the company.
4.2 Investigate opportunities for selling internationally
Marks and Spencer has been focusing on international business activities as well so that
brand image of the organization can be enhanced (Calfa and et.al,. 2015). At the same time,
Marks and Spencer has many opportunities to sell the products in global market which can also
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assist in building the customer base. However, on the other hand the brand value of products of
Marks and Spencer could be enhanced through operating the business in developed market place.
The business might be facing competition from other entities; but then due to innovative
product (M&S Apple Juice), the value of product can be increased. This can also have a greater
impact on business sustainability and profitability facets. At the same time, Marks and Spencer
has to ensure that focus is laid on environmental factors which changes business decisions in
many ways (Channon and Jalland, 2016).
4.3 Investigate opportunities for using exhibitions or trade fairs
Trade fairs and exhibitions play important role in promoting the product and service in
numerous market place and it is also useful in terms of enhancing the ratio of customers. Thus, in
this respect Marks and Spencer can also participate in trade fairs and exhibitions as that will
allow the business to capture the interest of different customers on greater extent (Bozarth and
Handfield, 2015). Alongside, Marks and Spencer should also focus on preparing a sales budget
as on that basis, all the activities of promotion needs to be carried on.
Apart from this, it is also crucial for Marks and Spencer to promote the business through
adding several new attributes in beverages. This can aid the organization to focus more on
enticing large number of end users towards Apple Juice. Thus, accordingly it can be said that
participating in trade fairs and exhibitions could assist Marks and Spencer to generate awareness
among customers regarding the new product which is brought to the market place by considering
the changing needs of end users (Bilginer and Erhun, 2015).
CONCLUSION
Summing up the entire research study, it can be said that prior entering into international
market place, it is essential for Marks and Spencer to identify the market scenario so that the
level of competition can be analysed. This is also useful in terms of framing appropriate business
strategies for meeting diverse needs of customers.
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REFERENCES
Aydin, S. and Kaya, N., 2016. Authentic Leadership In Sales Management: The Effects On
Salespeople’s Task Related Outcomes. Business and Economic Research. 6(2). pp.133-
155.
Bilginer, Ö. and Erhun, F., 2015. Production and sales planning in capacitated new product
introductions. Production and Operations Management. 24(1). pp.42-53.
Bozarth, C.C. and Handfield, R.B., 2015. Introduction to operations and supply chain
management. Prentice Hall.
Calfa, B.A. and et.al., 2015. Data-Driven Simulation and Optimization Approaches To
Incorporate Production Variability in Sales and Operations Planning. Industrial &
Engineering Chemistry Research. 54(29). pp.7261-7272.
Channon, D.F. and Jalland, M., 2016. Multinational strategic planning. Springer.
Chen, S. and Huddleston, P., 2000. A comparison of four strategies to promote fair trade
products International Journal of Retail & Distribution Management. 37(4). pp.336 –
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Cheung, W. L. and Prendergast, G., 2006. Buyers' perceptions of pirated products in India.
Marketing Intelligence & Planning. 24 (5).
Cummins, S., Peltier, J. W. and Dixon, A., 2016. Omni-channel research framework in the
context of personal selling and sales management: A review and research extensions.
Journal of Research in Interactive Marketing. 10(1). pp.2-16.
Gluck, S., 2017. Role of the Sales Force. [Online]. Available
Through:<http://smallbusiness.chron.com/role-sales-force-763.html>. [Accessed on 1st
March, 2017].
Gounaris, S., 2016. Sales Management.
Importance of Effective Recruitment & Selection. 2017. [Online]. Available
Through:<http://smallbusiness.chron.com/importance-effective-recruitment-selection-
55782.html>. [Accessed on 1st March, 2017].
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Johnston, M. W. and Marshall, G. W., 2016. Sales force management: Leadership, innovation,
technology. Routledge.
Karimi, S., Papamichail, K. N. and Holland, C. P., 2015. The effect of prior knowledge and
decision-making style on the online purchase decision-making process: A typology of
consumer shopping behaviour. Decision Support Systems. 77. pp.137-147.
Kuvykaite, R., Dovaliene, A. and Navickiene, L., 2015. Impact of package elements on
consumer’s purchase decision. Economics and Management. (14). pp.441-447.
McClaren, N., 2013. The personal selling and sales management ethics research: Managerial
implications and research directions from a comprehensive review of the empirical
literature. Journal of business ethics. 112(1). pp.101-125.
The Advantages of a Sales Database. 2017. [Online]. Available
Through:<http://smallbusiness.chron.com/advantages-sales-database-53408.html>.
[Accessed on 1st March, 2017].
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