SALES AND Glen Palmer 15BM60056

Thomas John 15BM60061

DISTRIBUTION Ruchi Patel 15BM6008
Abhijeet Mohanty

MGMT. 15BM60054
Anindya Saha

CASES
15BM60062
A.G. REFRIGERATORS CASE SOLUTION

LTD
CASE AND PROBLEM
STATEMENTS
Companys sales forecast for the year 2006-07 is
8,80,000 units of refrigerators.
Information required for the sales budget:
Market segments
Product type
Sizes
Question 1: What do you suggest to improve the
accuracy of the sales forecast and to get the break-up
of the sales forecast into product types and sizes, and
market segments
Question 2: Should the companys sales budget be
lower, higher, or equal to the sales forecast and why?
SUGGESTIONS TO IMPROVE
ACCURACY
It is advisable to not to depend on one method,
but to go for a combination of qualitative and
quantitative methods.

Quantitative: As per the GM (Sales), the moving

average method was good for short term
forecasting. However, the demand of refrigerators
is highly influenced by the seasons (peak in
summer season). Thus, it would be advisable to
choose exponential smoothening with an
adjustment
Qualitative: for
By seasonality. This will improve
following a bottom-up approach,
accuracy without
we can utilize the increasing
experiencecosts.
of the existing
salesforce to arrive at fairly accurate forecast
using the salesforce composite method
SALES BUDGET VS FORECAST,
WHICH SHOULD BE HIGHER?
Sales budget is the estimate of expected sales
volume in units or revenues from the companys
products and services and the selling expenses. It
goes into complete details of expected sales of
each product item.
A sales forecast is estimated units or rupees sales
for a specific future time period based on an
assumed marketing environment and a proposed
marketing plan
Sales budgets are generally set slightly
lower than the sales forecast, in order to
avoid excessive risk.
R K CONSULTANTS:
SELLING CASE SOLUTION

CONSULTANCY
SERVICES
 THE SELLING PROCESS

Presentation
Pre approach /
Prospecting & &
Pre-call Approach
Qualifying Demonstrati
planning
on

Trail close /
Follow-up & Overcoming
Closing the
Service Objections
sale
PRE-CALL PLANNING

Collection of data
Technical tie-up with German company
Manufacture and market hydraulic valves,
pumps, and other accessories in India
Distribution through dealers
Dealers to design, assemble, sale and
service hydraulic power packs
Fixing up appointment
APPROACH

Meeting the
managers of 2-M Research on
and their German market potential
counterparts to in Metros and
understand their major cities
needs

Addressing the
Research on the queries regarding
Competitors getting dealers in
India
PRESENTATION METHOD:
CONSULTATIVE SELLING
Need Analysis:
Build a rapport
Understand the needs and benefits expected
Introduction:
A complete and brief introduction about what is RK consultancy is
and what all services they provide etc.
Convincing:
Mention about their success stories (use of testimonials)
Show preparedness with the data collected and analysed
Discuss various options and suggest the best option available
Competitive Edge:
Show point of differentiation from the competitors

Well Prepared:
Anticipate possible queries and be prepared with relevant
answers
NEGOTIATION AND CLOSING
Use Minor Points close approach by
discussing:
Scope of the project
Required deliverables
Tentative timeline
Choice from available options
Terms of project
Pricing alternatives
Style of negotiation: Win-win
Should be used to come on consensus in
case of disagreement about various factors
like price, delivery schedule, scope of
project, etc.
 PI FOODS LTD.
Problems:
1. Shortage of supplies to some of the distributors
2. Non-receipts of companys products by C and D class retail
outlets
3. Irregular/declining visits of distributors salespersons

Questions:
4. If you were the area sales manager what would be your
suggested plan of action to resolve the problems?
5. Do you agree with Ramesh that issues involved were
important and should be resolved on priority? Give reasons.
QUESTION #1
If I were the area sales manager, my suggested plan of action
would be
Allocate different salespeople into different
groups A, B, C, D classes.
The team should be very well assigned so that the reach of the
product is ensured.
Proper communication channel between
company and distributor.
A distributor agreement to specify the details of their sales which
will help the ASM address the problems better. And use of
technology will also help in better sales forecasting.
Better performance evaluation
Policies on performance evaluation and control over salesperson
could be established. We can link incentives to sales quota based
on volumes.
Address time constraint
QUESTION #2
Yes, the issues involved were important
and should be resolved on priority.

Reasons

Affected companies sales and leadership

position in the market
Lowered the satisfaction levels of the retailers
Dissatisfied customers
Advantage for competitors
Less market penetration
Area sales managers are unware of the
problem
No proper compensation, motivational
programmes and performance standards
THANK YOU