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Sales and Distribution Management Assignment One

Submitted by:Submitted to:Mrs. Neelam Sheoliha Lecturer (Sales and Distribution Management) New Delhi campus Abhishek Pathak MBA THIRD SEMESTER SECTION 6 Marketing & H.R.


Sales and Distribution Management is a totally new

subject for most of us. Though this is a new subject but most of us are finding it a familiar one as most of us have undergone our summer training and have gain a little bit of knowledge about the business market. Sales Management is regarded as more of a fine art as most of it concerns with dealing with people. It can easily be regarded as subject which is more of practical knowledge than a theoretical one. This assignment deals with the methods which we can apply to make the sales training programme of an organization more effective one. In this assignment we have taken (PIZZA HUT) as the organization of which we are the Sales Manager and we have tried to suggest the pros and the cons of a good sales training programme. As this is our first assignment of the concerned subject hence their can be loopholes in this assignment due lack of adequate knowledge about the subject, we can assure you that any decrepencies will be eradicated when we present our next assignment.

Preface Company Profile Sales boosting Suggestions Office automation Computer based training In house sales training module Training Failures Funfacts Bibliography 06 07 09 11 13 14 01 03

The Company

The legacy of Pizza Hut began in 1958, when two

college students from Wichita, Kansas, Frank and Dan Carney, were approached by a family friend with the idea of opening a pizza parlor. Although the concept was relatively new to many Americans at that time, the brothers quickly saw the potential of this new enterprise. After borrowing $600 from their mother, they purchased some second-hand equipment and rented a small building on a busy intersection in their home- town. The result of their entrepreneurial efforts was the first Pizza Hut restaurant, and the foundation for what would become the largest and most successful pizza restaurant company in the world. Over the past four decades we've built a reputation for excellence that has earned us the respect of consumers and industry experts alike. Our products have been voted Number One in countless consumer surveys nationwide. And our accomplishments as an innovative business leader have been cited by such respected publications as Restaurant Business, Fortune and The Wall Street Journal. Pizza Hut, Inc., a division of Tricon Global Restaurants, Inc., has more than 7,200 units in the U.S. and 3,000 units in more than 86 other countries. What did it take to build a successful business of that magnitude? It took hard work, to be sure. And it took a commitment to quality and a dedication to service and value. But perhaps as much as anything, it took the qualities of entrepreneurship, growth and leadership, which have characterized our business through nearly four decades of success. Pizza Hut franchisees, for example, exemplify the entrepreneurial spirit which launched the system back in 1958. Through their interest and initiative, the Pizza Hut system was able to develop new territories both in the United States and overseas. Tricon is the parent company to two other segment leaders, Taco Bell and KFC. When combined with Pizza Hut, these organizations make up the world's largest restaurant group, with almost twice as many units as McDonald's. When it comes to leadership our proactive approach to product development and marketing provides ample evidence of our abilities. Beginning with the original thin crust pizza first served in 1958, Pizza Hut has made continuing efforts to refine our products, and to develop new products suited to every consumer taste. Today, our five major products, Pan Pizza, Thin 'N Crispy pizza, Hand-Tossed Style pizza, Stuffed Crust Pizza and The Big New Yorker Pizza are loved by millions around the world and have become the standard by which all others are judged.

We are working together to run great restaurants in order to be the best at making and serving the best pizza in America. That means we're willing and able to go to any lengths to make our customer's experience with Pizza Hut an enjoyable one. And it means we strive to present the finest products the industry has to offer, and to provide those products wherever and whenever people want them. Yes, we've come a long way since that opening night back in 1958 when pizzas were given away to generate interest in the fledgling business. And through the strength of our heritage, our culture and our people, we look forward to even more success in the years ahead. For ten of the last twelve years, Pizza Hut was named Best Pizza Chain in America in the "Choice in Chains" national consumer survey published annually by Restaurants & Institutions Magazine. In 1997 Consumer Reports named Pizza Hut the best pizza chain in America and in 2000 and 2003, The Dallas Business Journal named Pizza Hut "The Best Company to Work For" in Dallas/Fort Worth. Restaurants & Institutions' "2001 Choice in Chains" survey called Pizza Hut the number one national pizza chain in America. Our products have been voted number one in countless consumer surveys nationwide. Restaurant Business, Fortune, USA Today and The Wall Street Journal have cited our accomplishments as innovative business leaders. Pizza Hut is the family pizza place. As a matter of fact, we are rooted in family -- literally. Two brothers, mom and $600 turned into the recipe for the world's largest pizza company in 1958, when a family friend with the idea of opening a pizza parlor approached the two college-age brothers in Kansas. The concept was relatively new at the time and the brothers quickly saw the potential of this new enterprise. Borrowing $600 from their mother, they purchased second-hand equipment and rented a small building on a busy intersection in Wichita, Kansas. The result of their efforts was the first Pizza Hut and the foundation for what would become the largest and most successful pizza restaurant in the world. Look how far weve come. Pizza Hut franchisees exemplify the entrepreneurial spirit which launched our system back in 1958. Through interest and initiative, the Pizza Hut system was able to develop new territories both in the United States and overseas.

Today, franchisees and joint venture partnerships account for more than half of the Pizza Hut system's total units. Our development on the international front is a good indication of the growth that has characterized our system. Following the opening of the first international restaurant in Canada in 1968, Pizza Hut restaurants quickly appeared in Mexico, South America, Australia, Europe, the Far East and Africa. Today, Pizza Hut operates in 84 countries and territories throughout the world.

Sales boosting Suggestions

Automation For The Existing Organization The Pizza Hut branch of which we are sales manager only makes limited use of Information Technology. We feel however, that there are several ways in which Pizza Hut could expand their use of technology to benefit them, particularly with regard to basic house-keeping functions such as accounting applications, stock control and managerial decision making, all this will certainly boost its sales. The first suggestion that we would make would be to implement a Budgetary Control Subsystem to complement the basic spreadsheet and database applications that are already in place. Within organizations there is often too much emphasis placed on costs and this leads to the detriment of other production factors such as quality, performance and 'downtime'. We feel that the Branch Manager in Pizza Hut would benefit greatly from a system designed to: 1. Produce Published Accounts - which would assist with Stock Valuation. 2. Control resources and expenditure - which would eliminate wastage of both money and resources. 3. Set prices and make decisions on the best value brands of ingredientswhich would ensure competitive advantage. All the data required to run such a system would be collected at EPOS(Electronic Point Of Sale) Terminals. As well as the obvious advantage of less paperwork, a system such as this would leave the manager at liberty to carry out other duties, such as ensuring quality control, human resource management and customer care. Our second suggestion is to do with support for managerial decision making, involving both strategic decisions such as whether to start a price war with another pizza chain, whether to use a delivery company rather than companyowned vehicles or when to introduce a new product line and operational decisions such as what staff are required to do what job, whether the branch has enough cash to meet day - to - day needs or how to react to a material price increase. We feel that each branch would benefit from the implementation of a Management Information System (MIS) to assist with the above decisions as well as to provide routine summary reports on the firm's performance, to monitor the

business, to assess the impact of advertising and promotional activity and to predict future performance. Some examples of what information could be analysed by such a system would be:

How many pizzas were sold in each hour of the business. Which were the most popular toppings. How many workers were employed and the hours worked. How much stock, and of what type, is in hand. New employee applications. How much money was deposited in the bank at the end of the day.

The above data can then be stored within the system and sent at a cheaper rate at night to a central processing unit (i.e. Regional Head Office) to be analyzed. Finally, we feel the need to impress upon the managers of Pizza Hut the advantages of Electronic Mail. This is a relatively simple and cost effective system, which allows external as well as internal communication. The benefits of E-Mail are that it is quicker to use than the conventional mailing system, it facilitates communication between different branches allowing them to keep up to date with recent developments and it is better than the telephone system because the recipient can deal with messages whenever he/she chooses.

Suggestions For Computer Based Training

We would suggest as the Sales Manager, to consider using Computer Based Training for a number of reasons. Overall the use of C.B.T. improves company performance by standardising training within all the branches in the region with regard to consistent quality and immediate, individualized feedback. The main benefits for the sales trainees themselves are that they can work at their own pace and that any problems or difficulties can be identified immediately. Benefits for training facilitators include reduced training time and costs, the ability to meet large scale ad hoc training needs and the ability to keep detailed records of a trainee's progress. The main advantage of Computer Based Training is that training can be decentralised. In other words, using new technologies such as:

Interactive video Multimedia systems Video/Computer conferencing

means that the trainer and trainee do not have to be at the same location.

Fibre Optic Cable(video conferencing) - This presents a two-way link of vision and sound. This means that trainees can watch at different locations and interrupt to ask questions throughout the session. In the case of Pizza Hut, trainees in the Northern India branches could watch master pizza makers at work at the south Indian outlet. Satellite Communication - This may eventually replace seminars and conferences at expensive hotels. It has the double advantage of saving on travel time as well as allowing trainees to remain on the premises. Interactive Training Systems - These systems which include text, voice and pictures are currently being developed. Software packages such as these do away with the need for trainers completely, and allow trainees to learn at their own pace, repeat and revise sections where necessary and test themselves at the end. Computer Based Training software can be Generic or off-the-shelf, which teaches transferable skills or Bespoke which is developed by the company itself to suit their own specific training needs. The following are some examples of Interactive Training Systems software that we suggest would be suitable for use by Pizza Hut.

Sales Training: This covers subjects such as product knowledge and safety precautions.This type of software should ideally be developed by the company to suit its specific needs with regard to product knowledge. Interpersonal Skills: An example of Generic software would be a package called'Customer Care Counts' which aims to improve communication skills in general as well as helping to improve staff/customer relations. Walkabout Guides: These are icon based packages which allow computer familiarisation for employees at shop floor level as well as allowing managers to explore the use of new information systems.

Choosing the in house approach has many benefits. We can decide exactly what we want our people to learn. Our research and experience indicates that the more people are involved in the design of their training, the more committed to they become to making use of what they learn from it. Conducting an in house training programme makes it easier for you to integrate it with other training requirements because you can choose the timing and venue to suite your needs. You have the option of spreading training days over a number of weeks or months. This means the participants can apply what they learn to their real sales situations between training days. Reviewing results reinforces the value and helps participants adopt new habits and practices. Setting exercises for completion during the periods between training days, extends the learning time and increases effect that training has on sales. Links with your established reporting formats and practises can be maintained because we will adapt the planning tools and processes taught in the course to integrate with your established documents and methods. Because all participants are from the same company, we can work on real sales situations during the training. This helps participants make practical use of their time in the classroom by immediately applying learning to sales in progress. Participants improve their understanding of their current sales opportunities and identify actions to move their campaigns forward. Managers or in house coaches can sit in or participate 8

in the training so that it is easier for them to conduct follow up review sessions. Alternatively, because participants can be easily gathered together, SalesSense can conduct follow sessions to accelerate implementation.

In House Sales Training Modules

Understand Excellence How top sales people out perform their peers. Pipe Line Management Sell more immediately without learning new skills. Business to Business Understand the difference and avoid being trapped by one contact. Quantified Qualification Avoid working on sales that will never happen and always know what to do next. Profit Prospecting Selling profit instead of products. Upgrade non Verbal Communication Learn to use innate ability more effectively. Adapt for Personality Recognize personality traits and adjust you communication style to suit. Persuasion Understanding what people find persuasive. Attentive Listening The secret of being listened to. The Power of Questions How to help people persuade themselves. Guiding a Sales Meeting Using only passive questioning and listening techniques. Planning to Succeed How to make planning work. Defeating Competitors How to anticipate each competitors actions and formulate a winning strategy.

Negotiation Secrets Increase customer satisfaction and your profit. Gaining Commitment How to be first past the post. Learning Needs Analysis Our comprehensive in house delivery programme will include up to a day meeting with managers and participants. From the needs analysis results, we customise the training to reflect your unique sales environment. Follow up Workshops and Coaching To help accelerate adoption and application of new skills, habits and practices, SalesSense in-house programmes include a one-day or two half-day follow up workshop sessions. Follow up coaching and workshop sessions are available as an option following delivery of standard modules or courses.


Training Failures - Why?

After working with numerous organizations and industries, i have seen some common factors among successful training organizations and companies where training doesn't make an impact. Here is why companies fail at training: 1. No needs assessment: A doctor who prescribes medicine without seeing a patient is guilty of malpractice. Yet, so many companies hire vendors to provide training without first analyzing the needs of the organization, department, or the individual. This is a waste of training money. Do not proceed to training until you assess the needs.

2. Training is always the answer: Have a problem? Quick! Find a training program. One of the biggest myths is that training can fix everything. Managers must first assess if the problem is a training issue or an organizational problem. Let's say you have a problem with customer service. Reps are not servicing the customers in a timely manner. You decide to train them in telephone skills. Right before the training you discover there are not enough phone lines to handle the recent influx of inquiries. This is not a training issue. It's an organizational issue. Revamp the telecommunications system.

3. Training is reactive: Training must support the business objectives if it is to have impact. True learning organizations build training into the strategic plan. What is the company mission and where are the skill gaps? Training must be integrated, holistic, and part of long term planning if it is to make a difference. Training is an investment in the business-not an expense.

4. Training is a one-shot deal: Some companies believe that you can send someone to a two-day program and they will be changed like magic. Sorry. There are no magic wands. Think of when you first learned to drive. There was the readiness stage (written test). This is equivalent to pre-work. Then you took as many lessons as you needed to learn how to drive the car. This is training implementation. Finally, you received your license. But you weren't a driver.


You needed someone to go out with you until you refined your skills. This is coaching. Then one day, you could drive effortlessly. This is called mastery. Why would employees learn differently? Training must be reinforced. According to training research, learning that is not reinforced within the first four to six weeks' drops by 80 percent! Don't be pennywise and pound-foolish. To maximize training benefits, provide ongoing coaching or follow-up. 5. Failure to measure results: Most organizations spend thousands on training employees never to know if what they did worked. How well are employees using the skills? How is it improving their work? What is the impact on the department and company? In other words, was the training worth it?

6. Management does not participate: Successful learning organizations support training at the most senior levels. Without support, morale decreases and training has little or no impact. Support is evidenced in several ways. Employees are required to complete several hours of training per year. Training is built into the performance appraisal and is reinforced back on the job by the manager. If you want to increase company sales and productivity, provide training that is supported by your top executive, preferably International certifications


Pizza Hut serves more than 1.7 million pizzas every day, to approximately 4 million customers worldwide. Pizza Hut is the world's largest pizza restaurant chain, with nearly 12,000 restaurants, delivery-carry out units and kiosks in more than 86 countries. It employs more than 240,000 people worldwide. Pizza Hut uses 2.5 percent of all the milk (over 3.2 billion pounds) produced in the U.S. every year for cheese. That cheese production requires a herd of 250,000 dairy cows producing at full capacity 365 days a year. Pizza Hut uses more than 360 million pounds of REAL cheese per year; of that, 335 million pounds is mozzarella cheese. Stuffed Crust Pizza used approximately 50% of the 35 million pounds of string cheese produced in the U.S. in 1995. The highest volume Pizza Hut restaurant in the world is in Paris, followed by stores located in Moscow, Hong Kong and the U.K. Outside the U.S., the country with the most Pizza Hut units is Australia, followed by Canada and the U.K. In 1991, Pizza Hut made one of its most historic deliveries - - to Russian President Boris Yeltsin and his supporters, who prevailed over an attempted political coup. When food supplies dwindled in the Russian Parliament Building, Yeltsin called Pizza Hut delivery. Pizza Hut uses more than 700 million pounds of pepperoni per year. If you lay those pepperoni slices side by side, they would create a paths that would stretch around the world twice and go to the moon! There are 4.2 billion pizza purchases made every year, which equates to 11.5 million purchases every day. Half of these purchases are done on Friday and Saturday. A national survey commissioned by Pizza Hut revealed that 18-29 year-old males preferred pizza to ice cream, cookies and candy when indulging their palates and nearly one-third of those surveyed rank pizzas as their favorite indulgence food over cookie, cake and candy.


Books:Sales management by- Vaswar Das Gupta