SALES ORGANIZATIONAL PLAN
An organization's sales plan is an important part of its business operations and strategies. This plan works as the blueprint for the company and helps it reach its targets with the means and resources available. It must always be borne in mind that no matter how large a firm really is, its success will always be dependent on proper utilization and correct distribution of its limited resources. And we must also remember that no matter how big the sales force is, resources will always be limited and thus their economical use is recommended. For example a firm that has a very large sales force may fail to make as impressive an impact because of its scattered resources, however a firm half its size may penetrate the market more successfully because of effective use of resources. For this reason, a simple but effective sales plan is important and that is what we recommend for Kudler Fine Foods. According to Tony Parinello in Entrepreneur.com: "A sales plan should be short, simple, and to the point...It's basically a strategic and tactical plan for acquiring new business, increasing existing business, and making or exceeding sales quotas." He further adds: "Typically...a sales quota would include 75% new business and 25% add-on business from existing customers." (Electrical Apparatus)
Thus sales plan need not be all about acquiring new business; it has to focus on the existing businesses as well. But since Kudler Fine Foods is introducing a new product in the market, it will definitely need to concentrate as much on new business as maintaining old contacts. Before the sales plan is written down, it is important for Kudler's sales staff to identify their target market. This will save time since they will be spending more energy and time in acquiring business from this section of the market. A concerted effort in any area pays off. And this is exactly what the team has to understand. Focus on the target market while spreading your wings to other potential markets.
Identification of target market is based on many things including the image and pricing of the product. If the new product is relatively expensive, it is more likely to be consumed by higher income groups but that is not a hard and fast rule a lot depends on the type of product that is being introduced and also on the price of similar goods available in the market. Thus Kudler sales staff needs to remember the following few points before the plan is made:
Who forms the target market?
Are there similar products available in the marker?
What is the price and quality of rival products?
Is the product appropriately priced considering the availability of rival products?
If only higher income groups would be attracted is there a way we can penetrate other sections of consumers as well?
Fix a Sales Quota:
This is the most important part of the sales plan. According to Parinello, this part "sets the tempo" of the plan and it is here that the sales force would set weekly, daily or quarterly even annual targets. Kudler is a large food chain and thus it already has a strong consumer base. However it is still jittery about its new product since it is the first fresh food item being introduced by the firm. The firm needs to take into account the perishable nature of the product along with the fact that it is the kind of item that can be consumed on a daily basis. This means that unlike less perishable goods or goods with longer shelf life, this product has the potential to sell faster since salads are consumed daily by health conscious people. Kudler sales staff thus needs to set targets accordingly.
The next important part is the territory management. What geographical areas would be targeted and what sales goals should be fixed for each area. For example, as we discussed earlier, Kudler will be more popular in higher income groups thus suburban areas in large towns is the ideal market for its new salad line. The firm needs to have higher sales targets in these areas compared to lower income groups where the product may sell but not…