Comprehensive Report on Sales Planning and Operations at Tesco PLC

Verified

Added on  2020/07/22

|16
|5299
|34
Report
AI Summary
This report provides a comprehensive analysis of sales planning and operations, focusing on Tesco PLC. It delves into the role of personal selling within the promotional mix, comparing buyer behavior and the decision-making process, and outlining the roles of the sales team in marketing strategy. The report further examines the development of sales strategies aligned with corporate objectives, emphasizing recruitment, selection procedures, and the organization and control of sales activities. It also explores the use of databases in sales management, the impact of motivation, remuneration, and training, and concludes with a sales plan, opportunities for international selling, and the use of exhibitions. The report highlights the importance of aligning sales strategies with corporate objectives to achieve profitability and customer loyalty.
Document Page
SALES PLANNING AND
OPERATIONS
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Personal selling supports promotion mix..............................................................................1
1.2 Comparing buyer behaviour and decision making process...................................................2
1.3 Roles of sales team within marketing strategy......................................................................3
TASK 2............................................................................................................................................4
Covered in ppt.............................................................................................................................4
TASK 3............................................................................................................................................4
3.1 Development of sales strategies in line with corporate objectives.......................................4
3.2 Importance of recruitment and selection procedures............................................................5
3.4 Organisation of sales activity and control sales output by sales management......................5
3.5 Use of database in effective sales management....................................................................6
TASK 4............................................................................................................................................6
3.3 Role of motivation, remuneration and training in sales management...................................6
TASK 5............................................................................................................................................7
4.1 Sales plan for product or service...........................................................................................7
4.2 Opportunities for selling internationally...............................................................................7
4.3 Opportunities for using exhibitions or trade fairs.................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
Document Page
INTRODUCTION
The integrated business management process by which managers of organisation
continuously focus on all functions of sale is known as sales and operations planning(Careri and
et. al., 2011). The updated forecast which leads to make plans based on sales, inventory,
production, product development and financial planning are included under sales and operational
planning. In today's business world, sales and operational planning plays an important role for
improving the level of competition in business place. Following assignment is based on Tesco
Plc. which is a leading retail grocery store operating its business in the economy of United
Kingdom. This report will help to understand the support of personal selling in promotional mix.
Significant comparison is done in-between the behaviour of buyers and process of decision
making in different situations. Also, the importance of recruitment and selection procedure and
role of training, motivation and remuneration in management of sales will be studied here.
TASK 1
1.1 Personal selling supports promotion mix
Promotional mix: - It is the most significant element of marketing mix of Tesco plc.
Promotion and advertisement are the activities that help organisation to create awareness in
target market for products and services that are offered by them to increase sales and
development of brand image. This supports business to seek attention of potential customers
towards products by providing certain knowledge about its usage, benefits and other information.
The promotional mix of Tesco Plc includes elements which are personal selling, advertising,
sales promotion, public relation and direct marketing.
Personal selling: - It is a significant process where sales representatives of Tesco Plc.
directly contact with their potential customers who are seeking to buy products from the store. It
is the basic model of personal selling. It also refers to the process of convincing potential
customers for buying products through sales presentation, direct selling and telemarketing.
Support of personal selling to promotional mix: -
Personal selling is the most effective and efficient tool under promotional activity which
supports Tesco PLC in increasing the sales for its products and services and this can be changed
according to the need of potential customers and target market of cited organisation. The overall
marketing objectives of business is to ensure that products offered must be sold at determined
price level(Da Silva and et. al., 2012). Personal selling of products is done at the level of
1
Document Page
individuals i.e. person-to-person. Sales representatives of cited business undergoes through direct
communication with their customers and listen to the needs and promotes products directly. This
supports in providing goods as per the wants of users and satisfy them effectively. Personal
selling helps to create healthy relations with customers which supports in developing a positive
brand image of firm. This relation helps to understand the wants of customers and supports in
collecting their feedbacks. This supports in making changes in products and promotional
activities(Da Silva and et. al., 2010). Ultimately, the objectives of promotional mix of Tesco are
significantly supported by personal selling. Personal selling plays an important role in
promotional mix as it is an effective promotional tool adopted by the companies. It helps in
assessing the intention of buyers and understand that whether they are going to make purchase or
not. Hence, the company must adopt this promotional selling techniques in order to derve best to
the organizational goals.
Personal selling supports promotion mix as the way of tool to the business. The strategies
which are made for marketing of the products should be proper and the ways in which marketing
is done should be proper so customers are well aware about the product.
1.2 Comparing buyer behaviour and decision making process
Buyer’s behaviour: - The behaviour of customers is stated as their mind set to purchase
the products and services offered by organisation. The buying behaviour of each customer is
different from others. Effective assessment of customers buying behaviour is done by
organisation that provides assistance to frame strategies and implement it so that sales of the
product can be increased.
Decision making process: - It is a process through which customer goes through while he
thinks to make purchase of any product or service. The process of decision making involves five
stages i.e. recognition of need, information search, evaluation of alternative, decision of purchase
and post-purchase behaviours. These five steps of decision making are briefly being described as
follows: -1. Recognition of needs: - It is the first stage to decision making process regarding purchase
of any products or services offered by an organisation. At this stage, potential customer
recognises his need in relation to buying.
2
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
2. Information search: - It is the second stage of decision making. Once customers have
identified their need, they search and collect information from different sources as per the
same.3. Evaluation of alternative: - There are different organisations in business world who
provide same or similar kind of products in the market. Under this stage, customers try to
evaluate all the alternatives available in the market by various companies. This evaluation
is based on identified needs(Fleischmann, Meyr and Wagner, 2015). For example,
consumers will evaluate grocery goods supplied by Tesco and its competitors in the same
market which are Asda and Sainsbury.4. Decision of purchase: - It is the second last stage where customers make decision
whether they have to buy product or not. It is done after evaluating the alternatives
available in market.
Post-Purchase behaviours: - This is the last step in decision making where customers take
decision after making the use of purchased products. Under this, customers make decision
whether they want to make the purchase of used products again or not(Halpin, 2014).
So, it is important for Tesco Plc to assess the buying behaviours of his target customers
and process of decision making. This help to formulated strategies for business which supports in
functioning as per needs of consumer and helps in satisfying them.
The purchase of the products by the customer purely depends on the elasticity of demand.
If the demand is elastic that is large number of substitutes are available in the market which gives
the responsibility to the customers and purchases are made based on their taste and preferences.
If the demand is inelastic and it is a necessity for the customer, such as, medicines then there are
high chances that the promotion made by the company will covert large number of sales leads.
The buyers' behaviour depends on the needs and wants of the current market trends. Nowadays
new type of technologies are been invented and new methods are being used so the decision
making process of the buyers also changes according to the time thus the buyers are more
influenced nowadays on quality of product so good quality should be provided to the buyers
with changing demand of the market .
1.3 Roles of sales team within marketing strategy
The success of business organisation depends upon the sales team. These teams have
effective contributions in increasing the sales level of products offered. Marketing strategy of an
3
Document Page
firm includes certain activities and function which support organisations products to reach within
its potential customers. For the following reasons Tesco Plc have formulated marketing mix
which describes significant elements of marketing process. This elements are product, price,
place, promotion, process, people and physical evidence. The cited business have made
recruitment of effective sales team which focuses on increasing sale of products.
The main role of sales team of Tesco Plc is to increase the sales volume of the products
offered by cited organisation this directly increases profitability. These team also plays
significant role in building good relations with its customers. They have important role in
communicating with consumers directly for listening their issues, solving them and conceiving
them to make purchase of offered goods by describing its benefits. The sales representative team
have great role in providing lot of information about brand, its products and services to new
customers(Heizer and Barry, 2013). This supports organisation to develop reputation and
increase trust of customers towards Tesco Plc. Other important activities to be performed by
sales team in marketing strategy includes:
Completing the targets being made for sales
Measuring and improving the sales results for the company
Increase brand awareness of the products.
Helps in assessing prudent targets for sales personnel
Making the management aware about the current scenario of the market and acdceptance
of people regarding the products.
If the team members of the sales department is good in promoting the products then the sales will
be at a greater speed . The main aim of the sales department is to increase more and more sales
and hence profit also increases. If the product is newly established in the market then the selling
price should be low so that more and more customers are been attracted towards our product and
the sales increases. If the sales increases then the profit also increases and the overall
development of the company takes place.
4
Document Page
TASK 2
Covered in ppt
TASK 3
3.1 Development of sales strategies in line with corporate objectives
The planned approaches to achieve organisations sales target with the help of policy
formation, sales presentations, etc. there are some objectives of sales strategies which are stated
as follows:1. To increase customers loyalty.2. To step-down the sales cycle(Islam, 2013).3. Determining best approaches in order to face competitors.4. To increase product and market growth.5. To enhance product differentiation and increase competitive advantage.
Corporate objectives: -
The statement which describes purpose of organisation and supports in providing path for
its activities is known as corporate objectives. It defines the aims of business which they wants to
achieve it.
Sales strategy: -
It states the strategy which focuses on achieving the sales target of organisation for a
determined time period. It mainly aims at increasing the sales of products offered by business.
The main corporate objective of Tesco Plc is to increase the profitability with increases in
its customers for products offered. The sale strategy help in increasing the relations with
customers, increase brand loyalty and supports in gaining competitive benefits. Ultimately this
overall activities of sales strategies helps cited business in achieving its corporate objectives of
increasing customers and profitability for the products offered.
The alignment of sales strategy with organisation corporate objectives checks that
business and its sales team must focus on common aim. Sales strategy of business must include
common objective i.e. growth, increase in profitability and revenues. All these are achieved by
effective implementation of framed strategies(Jacobs and et. al., 2011). For example, it will
increase sales of product which will directly fulfil objectives of revenue and profitability.
5
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
The sales of the product should be such that more and more customers are being attracted
towards the product . Sales should be made in a way that discount offers should be allotted to the
customers at the festive season so that they are highly attracted towards the product and more
profit is been included and the overall growth of the company takes place. Sale price should be
such that all the people should purchase . The price should be nominal so that more number of
customers are been attracted and more sales increases and hence profit increases.
3.2 Importance of recruitment and selection procedures
In today's business world success of an organisation completely depends upon its work
force i.e. employees. For this firm have great requirement of good recruitment and selection
procedure which must be effectively planned, organised and conducted by which they can attain
organisation objectives(Keal and Hebert, 2010).
Recruitment procedures: - In a procedure where business can select the individual a per
the number of employees needed.
Selection procedures: - It is the procedure where the best suitable employee is chosen
and appointed for performing the activities of organisation effectively within the time frame.
Tesco Plc follows effective strategies in order to select best candidate for enterprise. It is done by
conducting interviews, written examination and viva.
Importance of recruitment and selection procedures for Tesco Plc: -
Tesco Plc follow effective tool for selecting good employee for organisation. Recruitment and
selection procedures are important to get appropriate employee to achieve business goals and
objective. It is important for organisation to develop effective procedure which will help in
getting capable candidate. It is also important to enhance competitiveness of cited company.
Recruitment and selection procedures is important because:
It helps in recruiting right kind of talent to the organization so that all the objectives can
be achieved.
It also results in assessing the competency of the candidate and evaluate the knowledge
level for the job post for which the person will be recruited.
It helps in increasing turnover of the entity.
It checks the reliability of the candidate through interview and background check.
Recruitment and selection procedure is important in the following ways:
6
Document Page
Before hiring the employee the recruitment procedures takes place because before hiring
anyone in the organisation searching of appropriate candidate is been done to appoint
well and qualified employee.
After recruitment selection process is being done . Various selection test is being done
and then the employee is being hired.
3.4 Organisation of sales activity and control sales output by sales management
Sales management system within Tesco plc involves implementation of sales team and
strategies in order to check organisation of sales activities and control sales output. The activities
related the selling of products is organised by the sales team of cited organisation. It includes all
the activities of marketing and promotion carried out by firm in order to attract customers
towards its products offered and to develop brand image of business. This system within a
company manage the use of several marketing plans for implementing marketing strategy of the
organisation.
Sales team of business determines the intermediaries of market, promoters, retailers, sales
personnels and advertising agencies who carry out activities of sale for the particular product of
organisation. The sales output is controlled with the help controlling sales activities through sales
management system. The total level of sales done within a period of time is stated by sales
output(Kjellsdotter Ivert and Jonsson, 2010).
Some of the sales activities includes taking feedbacks from customers and allowing them
to review products offered by cited business. It also involves conduct of meetings with sales
managers. Some activities include the following:
Taking feedback from senior managers and team leaders.
Assessing the performance of each personnel and organizing training sessions
accordingly.
Providing monetary and non monetary benefits as per the achievement of each sales
personnel.
Motivating the employees to perform their best.
If the amount of sales is up to the amount of production ten the sales may be controlled. The
amount of product should be limited according to the needs of the customers so the sales ratio
should be according to the production done. If the performance of the production increases then
the sales will increase and thus the overall profit of the company increases. The amount of
7
Document Page
production should be increased according to the needs opf the customers and the sales price
should be nominal so that the customers buy that product easily and it leads to more profit.
3.5 Use of database in effective sales management
The sale team of organisation can record information about sales done, its customers and
activities related to sales with the use of data base in management of sales. The sales strategies
can be reviewed with the help of these informations and supports in identifying weaknesses of
implemented strategy(Lindahl, Sundin and Sakao, 2014). This identification assist organisation
in making alteration in strategies in order to improve level of sales, its activities and control
them. The use of sales management helps Tesco Plc to track its sale of products at any time and
provide accurate information. This supports sale team of cited organisation to plan different
activities of sales and organise it to increase the level of sales. All the information stored in
database supports sales team of Tesco plc to get accurate sales reports.
TASK 4
3.3 Role of motivation, remuneration and training in sales management
The sales management is the procedure where Tesco Plc manages all activities directly related
to sales team and checks that strategies framed in respect of sales must be implemented
effectively. The main objectives of sales management is to achieve determined sales targets of
cited organisation which the support of strategies framed. For managing sales team and their
activities Tesco Plc uses different tools such as motivation, remuneration and training. The role
of these tools are described as follows: -
Motivation: - The main role of motivation is to influence sales team of organisation to
work effectively and enhance their level of performance which helps in achieving business goals
significantly within the time frame. The team can be motivated by two different ways i.e. by
providing monetary benefits and non monetary benefits. It plays vital role in increasing the sales
volume of products offered by cited company and enhances profitability(Mula and et. al., 2010).
Remuneration: - It is defined as value paid by organisation to its sales team for their
work performed. It plays important role in influencing team for enhancing their performance
level to accomplish objectives of organisation. Tesco Plc provides increased salary to their
employees as per the performance which plays significant role in increasing morale of
employees and enhances their interest toward effective working.
8
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
Training: - It is an important process by which supports current sales team of Tesco Plc
to increase their capabilities and skills for working effectively in order to achieve sales targets of
business(Müller and Stark, 2010). The various training methods are used by cited organisation to
enhance employees skills effectively. This supports sales team to implement framed strategies
effectively to achieve goals.
TASK 5
4.1 Sales plan for product or service
Effective sales plan are helpful in developing and achieving its targeting customers for
Tesco. It is helpful in planning of aims and objectives for organisations. Effectiveness and
efficiencies of firms are also increased which results in growth of cited firms. Conflicts are
reduced as plans are followed by employees and increases in profit ratios. Company had to sell
its retail products in an effectiveness way so as to enhance quality of products. Proper balance of
all material so that consumers are satisfied with the type of products they are selling in market
place. Cited company had to lay focuses on those products which are mostly demanded by
customers and thus they are helpful in increasing revenues for firms. Main aims of company
should be achieved which are related with satisfying differential needs of customers. One of the
major thing which management of an organisation keep in mind is that they have to take care
about their customers and their interest for products. In this context, they have to use appropriate
appliances which enable an organisation to provide quality services. Tesco provides various
number of products to their users hence it is a retail company and for this management have to
provide proper insurance for their products in which quality plays a vital role. In this context,
they have to provide them high quality goods and services to final users.
Sales Plan for Tesco
Objectives of the plan: To enhance the customer base by 10% and increase sales by 15% so that
profits for the company can be escalated.
Sales tactics:
To increase the investment in promotional activities by 20%
To increase presence on social media
To plan monthly, weekly and fortnight targets of sales for the sales personnels.
To increase the awareness of products by personal selling
9
Document Page
Obtain referrals from new customers.
Use different communication tools such as, Facebook, LinkedIn etc.
The sales plan should be such that the promotion of the product should be made with
advertisement through television , newspaper so that more and more people are aware
and it leads to more sales and hence the overall profit increases and hence sales sould
increase and the advertisement through online sources should also be made to promote
our product in the market and to gain maximum profit .
4.2 portunities for selling internationally
In today's competitive business market all the organisation looks forward for gaining
certain benefits over their competitors in business place. One of the significant way to achieve
advantages is to operate business in international business market(Nazar and Saleem, 2011). By
operating business in other countries it allows to gain many opportunities apart from this they
may face many challenges. Tesco Plc is established retailer for the sale of grocery products
which includes food and non food items. This allows cited company to build effective brand
image and increase its loyalty among customers with repetition of sales. This factors allows
organisation to increase the sales of its products in all the market either it is international or
domestic market(Olhager, 2013).
The international market where Tesco do not operates its business have significant
opportunities for organisation because of its strong brand image. The operation of cited business
may lead fall or shut down of other firms. Some of the opportunities is listed as follows: -
1. Supports in market expansion.
2. Helps to earn foreign currency.
3. Build new relations with other countries.
4. Increases brand image in new international market.
5. Increase in sales of products and service.
Collaborating with the existing companies in international boundaries and making
ventures is the method through which Tesco can expand. Further, it can also give franchisee to
other companies and run it in its own name. These are the easiest and convenient ways through
which Tesco can expand. Further, partnership is another option available for tesco to enhance its
presence in other geographical boundaries.
10
chevron_up_icon
1 out of 16
circle_padding
hide_on_mobile
zoom_out_icon
[object Object]