PROJECT ON SALES AND DISTRIBUTION

MANAGEMENT

PHASE – I

SUBMITTED TO:
DR. LATHA K.
ASSOCIATE PROFESSOR
SAINTGITS INSTITUTE OF MANAGEMENT

SUBMITTED BY:
RIBIN VARUGHESE RAJAN
MBA (2018-20)
Introduction
On this day in 1937, the government of Germany–then under the control of Adolf
Hitler of the National Socialist (Nazi) Party–forms a new state-owned automobile
company, then known as Gesellschaft zur Vorbereitung des Deutschen Volkswagens
mbH. Later that year, it was renamed simply Volkswagenwerk, or “The People’s Car
Company.”

Originally operated by the German Labor Front, a Nazi organization, Volkswagen was
headquartered in Wolfsburg, Germany. In addition to his ambitious campaign to build
a network of autobahns and limited access highways across Germany, Hitler’s pet
project was the development and mass production of an affordable yet still speedy
vehicle that could sell for less than 1,000 Reich marks (about $140 at the time). To
provide the design for this “people’s car,” Hitler called in the Austrian automotive
engineer Ferdinand Porsche. In 1938, at a Nazi rally, the Fuhrer declared: “It is for the
broad masses that this car has been built. Its purpose is to answer their transportation
needs, and it is intended to give them joy.” However, soon after the KdF (Kraft-durch-
Freude)-Wagen (“Strength-Through-Joy” car) was displayed for the first time at the
Berlin Motor Show in 1939, World War II began, and Volkswagen halted production.
After the war ended, with the factory in ruins, the Allies would make Volkswagen the
focus of their attempts to resuscitate the German auto industry.

Volkswagen sales in the United States were initially slower than in other parts of the
world, due to the car’s historic Nazi connections as well as its small size and unusual
rounded shape. In 1959, the advertising agency Doyle Dane Bernbach launched a
landmark campaign, dubbing the car the “Beetle” and spinning its diminutive size as a
distinct advantage to consumers. Over the next several years, VW became the top-
selling auto import in the United States. In 1960, the German government sold 60
percent of Volkswagen’s stock to the public, effectively denationalizing it. Twelve
years later, the Beetle surpassed the longstanding worldwide production record of 15
million vehicles, set by Ford Motor Company’s legendary Model T between 1908 and
1927.
With the Beetle’s design relatively unchanged since 1935, sales grew sluggish in the
early 1970s. VW bounced back with the introduction of sportier models such as the
Rabbit and later, the Golf. In 1998, the company began selling the highly touted “New
Beetle” while still continuing production of its predecessor. After nearly 70 years and
more than 21 million units produced, the last original Beetle rolled off the line
in Puebla, Mexico, on July 30, 2003.

Shaping mobility – for generations to come.

Volkswagen has always made individual and affordable mobility possible for millions of
people. Under the new vision "Shaping mobility - for generations to come.” we are providing
answers to the challenges of today and tomorrow with our sharpened TOGETHER
2025+ Group strategy. Our goal is to make mobility sustainable for us and for future
generations. Our promise: With electric drive, digital networking and autonomous driving, we
make the automobile clean, quiet, intelligent and safe. At the same time, our core product
becomes even more emotional and offers a completely new driving experience. It is also
becoming part of the solution when it comes to climate and environmental protection. In this
way, the car can continue to be a cornerstone of contemporary, individual and affordable
mobility in the future.

Four target dimensions

1. Excited customers
Our corporate brands are moving – with affordable city cars, functional light
commercial vehicles or exclusive sports cars. This is part of our DNA. With our strong
brands we want to offer mobility that gives people individual freedom and social
participation, today and in the future. With our digital ecosystem, we bring our
customers’ world into their vehicles. We want to inspire new customers and keep them
loyal to us – because only loyal customers recommend us further.
2. Excellent employer
For sustainable success, we need competent and committed employees. We want to
promote their satisfaction and motivation through equal opportunities, an attractive and
modern working environment and a sustainable work organization. This is based on an
open, positive and cooperative culture, a high degree of diversity in the workforce and
exemplary and inspiring leadership. These elements help us to retain employees at
 Volkswagen and attract the best global talents to enthusiastically work together on fully
connected, sustainable mobility.
3. Role for the environment, safety and integrity
We find ourselves at a turning point: Climate change is one of humankind’s central
challenges. Stopping global warming is an obligation for all of us. As the largest
automobile manufacturer, Volkswagen assumes responsibility and leads the way. In
order to protect the environment and implement the political guidelines, we are
consistently focusing on electro mobility. By 2050, at the latest, the entire Volkswagen
Group will be a CO₂-neutral company. Our highest principles include integrity, the
observance of rules and laws, the safety of our customers as well as the open dealing
with errors in order to remedy and avoid them in the future. We actively assume our
responsibility for society: We conduct our business in a socially responsible manner,
based on clear values.
4. Competitive profitability
In order to be successful in the new world of mobility, Volkswagen will become more
transparent and agile, more efficient and more profitable. With our TOGETHER 2025⁺
strategy, we are building on our existing strengths - and at the same time vigorously
addressing our deficits. Our goal is to exploit the full potential and synergies of our
large, global Group with significantly greater focus and speed. Our aim is to set
standards in our industry in terms of efficiency, productivity and profitability. And we
aim to achieve market capitalization that adequately reflects the strength and future
orientation of the Group and its brands.
General information.
Our employees are the people who deliver tailor-made cars to our customers and provide them
with first-class service after the sale. We listen to our customers’ wishes - from the very first
time we talk about a possible vehicle purchase to the delivery of their dream car. And, of course,
we are available after the sale to answer all questions and listen to all suggestions.
Product marketing
At the start of the product-development process, we conduct analysis through product
marketing about various market and customer requirements. Working with development and
other speciality departments, we assist with the new products throughout the entire creation
process. We define product characteristics, design equipment and price components, and
specify and refine them in the development process until market introduction.
Marketing communication
In the area of marketing communication, we develop the global 360° marketing concepts for
the Volkswagen brand and its products. The work involves digital, social and analogue
communications, motor shows and events as well as branded entertainment. We shape the
Volkswagen brand – for and together with our international market organisations.
Sales management
Sales controlling plays a key role in global sales planning. We work closely here with teams
from the sales regions and the Board of Management divisions finance, production and human
resources. In addition to long- and short-term volume planning, our responsibilities include the
strategic price planning of vehicle projects and support of the entire vehicle-ordering process
between the customer and automaker via system worlds. The organisation of employee
development in sales by the Sales Academy and the management of company-wide process
optimisation are other aspects of our work.
Sales religions

Our dealership partners are supported by the areas of Sales Germany, Sales Europe, Sales
International and the regions of China, South America and North America. The contact partners
are active in markets throughout the world: from Australia to Canada and from Russia to Brazil.
Our areas of responsibility are quite diverse, characterized by different market conditions and
the impact of local languages and cultures. We do such things as define the strategic direction
of the brand, the product spectrum and the sales targets of the market. We put them into action
with the help of the departments assigned this responsibility – either in Wolfsburg or together
with local colleagues. The home market of Volkswagen Passenger Cars is supported by Sales
and Marketing Germany. The market is divided into seven regions, a step that ensures that our
local dealers get the best-possible support. The range of our jobs extends from traditional
vehicle sales, the sales organisation and support of digital topics, to the planning and
implementation of specific marketing measures in the dealership network. We have just one
goal for everything we do: creating satisfied customers.
After sales

Our team in After Sales and the Dealer Network handles all jobs and processes that
occur at the dealership partner after the sale of a vehicle. Worldwide. The key focal
point is helping the dealership partner provide comprehensive support to the customer.
This involves such jobs as ensuring service quality and providing fast delivery of
original parts. The team's responsibilities also extend to analysing and increasing
customer satisfaction as well as ensuring the satisfaction of dealership partners.

Sales management strategies

 Identify goals and objectives of the sales team. Be clear on your sales targets. Make
sure the targets are realistic and achievable. Also assign a fixed timeline to achieve the
targets.
 Know your product well. Understand what benefits end-users would get from your
brand. The marketers must interact with customers to find out more about their
expectations from the product as well as the organization. One would not be able to
convince the customers unless and until he himself is clear with the benefits of the
products.
 Identify your target market. Selling techniques and strategies can’t be same for all
individuals. Each audience has different needs, interests and requirements.
 Hire the right individual for the sales team. Remember the sales professionals have
a major role in the success and failure of organizations. Recruit individuals who are
aggressive, out of the box thinkers and nurture the dream of making it big in the
corporate world. Make the sales representatives very clear about their roles and
responsibilities in the team. Develop a lucrative incentive plan for them. Incentives and
monetary benefits go a long way in motivating the sales team.
 Don’t lie to your customers. It is important to maintain transparency.
Communicate what all your product actually offers. It is unethical to make false
promises. Only commit to what you actually can deliver to customers.
 Know what your competitors are offering. It is essential to do a SWOT analysis of
your organization to know its strengths, weaknesses, threats and opportunities. A
marketer must know how his product is better than his competitors.
  Sales representatives must do their homework before going for a sales call. One
should never go unprepared. Remember the customer can ask you anything and you
have to be ready with your answers. The management must promote training sessions
at the workplace to upgrade the skills of the sales professionals and expect them to
deliver their level best.
 Devise strategies as per the target audience. Know your market well. The individuals
must be able to relate to your products. The strategies must be formulated in the
presence of all. Each one should have a say in the same. Let everyone come out with
his suggestions. Be ready with alternate plans if one plan fails.
 The management must conduct frequent meetings with the sales team to review
their performances. Keep a track on their daily activities. The sales team must prepare
Daily Sales Reports (DSR) for the superiors to know what they are up to.
 One must assess his own performance. Recall your interactions with the clients and
analyze where you went wrong and where things could have been a little better.
 Treat your customers well for higher customer satisfaction and retention. Don’t
oversell. Once you are through with your sales presentation, don’t be after your client’s
life. Give him time to think and decide.
 The sales pitch must be impressive for the desired impact.

Sales operation

Sales Operation activities help the sales professionals to meet the sales targets in a
systematic and the best possible way.Sales Operation activities help to devise relevant
strategies and plans (both long term as well as short term) to achieve the sales goals.In
simpler words sales operation activities help in generating revenues for the organization
through meticulous planning, better budgeting and adopting a methodical approach.

Let us go through the various steps in sales operation:

1. Sales representatives should prepare their own database. Make sure you have a
long list of potential customers. Mere sitting at office doesn’t help in sales. Go out in
the field, meet people and gather as much information as you can. Put canopies at
strategic locations. Networking helps in sales.
2. The next step is to segregate the data according to age, sex, income and so on.
Classify the data under various sub heads like working/non-working, middle
 class/upper class, employed/unemployed etc. Such classifications help you to
understand the customers better and identify your target audience.
3. Sales strategies ought to be different for every segment. The needs and interests of
a female would be different as compared to a male. Similar products would not excite
a youngster and an individual who is 50 years old. Create relevant strategies for
different segments as per their needs, interests and demands. The promotional plans
must excite the customers and attract them towards the organization.
4. Speak to the customers and seek for appointment. Fix up a time as per their
convenience. One should never call a customer more than twice in a single day. It
irritates him and he tends to avoid you in future. Give him time to think and decide.
Avoid being pushy. One can also send a soft reminder through email to the customer.
5. Once you get an appointment, make sure you reach the venue on time. Don’t
expect the customer to wait for you. Remember the customer can ask you anything
related to the product. Make sure you know everything about the product and its
offerings.
6. Understand the needs and expectations of the customers. Try to make him
understand how your product would benefit him? Make him realize how your product
is better than the competitor’s. Don’t oversell.
7. Attend sales deal with an open mind. Don’t be too rigid on price and other terms
and conditions. Give the best deal to the customers for them to come back again to
your organization.
8. Sign a written agreement with the buyer. The agreement should have the
description of the product, model no, date of purchase, warranty details and other
necessary terms and conditions. Some organizations also give bills to the customers.
Bills are required when the customer comes for an exchange.
9. Make sure products are delivered in good and working condition to the
customers. It is the duty of the sales representatives to assist the customers in
installing, using or maintaining the products.
10. Make sure you are in touch with the clients even after the deal for higher customer
satisfaction, higher customer retention and eventually higher revenues.