Institute of Management Nirma University, Ahmedabad Sales Management
Sales Training at four different companies
Submitted To: Prof . Jayesh Aagja Submitted by Group No. 5
Malhar Patel (121328) Monik Patel (121332) Vivek Patel (121262) Vivek Shah (121361)
10th October 2013
Gimatex Industries Pvt. Ltd. Introduction
Late Shri Raisaheb Rekchandji Mohota migrated from Rajasthan to Hinganghat way back in 1868 in search of opportunities. Late Shri Raisaheb Rekhchandji Mohota, established the textile unit of Raisaheb Rekhchand Mohota Spinning and Weaving Mills Ltd. known as RSR Mohota Mills way back in the year 1898. Continuing on the company growth in 1994, Vibha Synthetics Ltd. was established as one of the sister concerns of the RSR Mohota mills. Later in 2005 after the family restructuring, Vibha Synthetics Ltd acquired Wani unit of RSR Mohota Mills and rechristened itself as Gimatex Industries Pvt Ltd. Today it is managed by the 6th generation of the founder member Late Shri Raisaheb Rekhchandji Mohota. There are two basic types of trainings:
(1) Product training (2) Sales training Product Training:-Objective
To impart technical as well as practical knowledge regarding the product. -This training is obtained by all the sales persons. Duration
It is usually 2 months. Trainer
Trainer is a senior level executive from the sales department. Place
It is organized at company's premises. Methods
Through product presentation, product demonstration and practical use of the product. Evaluation
It is done immediately after the training is done. Sales Training -Objective
To have a consistency in sales process by all the sales persons and to achieve maximum efficiency in sales process. -This training is obtained by all the sales persons. -Duration
-It is usually 1 week. -Trainer
Trainer is a senior level executive from the sales department. -Place
It is organized at foreign location like some resort. -Methods
Through Role plays and presentations. -Evaluation
During the actual delivery of the service.
Amway India Introduction
Amway India is the country’s leading direct selling FMCG-company, which manufactures and sells consumer products. Amway India commenced commercial operations on May 5, 1998 in India. Amway India's turnover in 2012 was 2288 crore. It is having over 5, 50,000 active independent Amway Business Owners. In thirteen years of commercial operation, Amway India has established a nation-wide presence of over 135 offices and 55 city warehouses and 4 regional mother warehouses. The distribution and home delivery network set up with the support of independent logistics partners is spread across over 5500 locations. At present, Amway India offers over 130 products in five categories. All its products are covered by a 100 per cent Money Back Guarantee. Product categories are Personal care category, Home Care category, Nutrition & Wellness category, Cosmetics and Great Value Products. With the exception of Cosmetics range (Artistry) and some products in Nutrition and Wellness category, all Amway India products and bottles are manufactured in India. It sells its products through brick and mortar stores, e tailing and catalogue with help of its independent Amway Business Owners. Types of training
1) Product Training
Objective:- To impart technical as well as practical knowledge regarding the product
All sales person
Duration :- 1 day per 2 categories
Trainer :- Authorized full time trainer
All around the year
Place :- At each Amway offices in all cities
Methods :- Product presentation , demonstration , practical application
Evaluation :- Immediately after the training
2) Soft skills and business practices training
Objective:- Business plan, Team building , verbal and non-verbal communication
Duration :- Seminars organized twice in a year
Trainer :- Successful people from the business who have reached at certain position (e.g.
Diamond and above)
Place :- In one city per state
Methods :- Lectures , Role play, Team building exercises, life stories
Evaluation :- No evaluation
3) Positive mental attitude training
Objective:- To motivate sales people and to give them positive attitude
Duration :- Video and/or audio c.ds, D.V.Ds
Trainer :- Successful people from the business who have reached at certain position (e.g.
Emerald and above)
Place: - In car, home etc.
Methods :- Lectures, life stories
Evaluation :- No evaluation
Arrow Electronics Introduction
It is a Fortune 500 company headquartered in Inverness, Colorado. The company specializes in distribution and value added services relating to electronic components and computer products Arrow Electronics is a global provider of products, services and solutions to industrial and commercial users of electronic components and enterprise computing solutions, with 2012 sales of $20.4 billion. Arrow serves as a supply channel partner for over 100,000 original equipment manufacturers, contract manufacturers and commercial customers through a global network of more than 470 locations in 55 countries. A Fortune 150 company with 16,500 employees worldwide, Arrow brings technology solutions to a breadth of markets, including telecommunications, information systems, transportation, medical, industrial and consumer electronics. Arrow provides specialized services and expertise across the product lifecycle. Arrow does this by connecting customers to the right technology at the right place at the right time and at the right price. Arrow provides extraordinary value to customers and suppliers - the best technology companies in the world - and connects them through the company's industry-leading services. Arrow sales continually growing. Year
1998
1997
1996
1995
1994
Sales
$8,344,659
$7,763,945
$ 6,534,577
$ 5,919,420
$ 4,649,234
Customers:
Arrow ordered electronic products from(Intel, Motorola, Texas instrument) suppliers and Sell (IBM,HP) the components to Original Equipment Manufacturers (OEMs). Who used them in assembly of computer and other electronics, Smaller companies/Start-up companies:- For them it was convenience access to thousands of components
Market offering
• Extensive relationships with customers (OEMs & Buyers) • Handled the supplier’s goods. (this allowed suppliers to reduce their own sales force expense and also they did not need a large inventory for their product) • Access to thousands of products from hundreds of suppliers. Sales force structure
• Sales divided into 4 distinct operating groups based on product type: 1) Commercial Semiconductors 2) Military and aerospace semiconductors 3) Passive and connector products 4) Computer systems, peripherals, and software Sales Force divided into geographic divisions -Each of which had Branch Sales Office. Around 350 competitors within this High-growth Industry. Many sales people left Arrow to work with competitors Departing Arrow sales people took their clients with them. Mainly competed with 20 large regional or national companies. Sales Force Job description
General Manager (GM):Field Sales Representatives (FSRs): Sales and Marketing Representatives (SMRs):Product Managers (PMs):-
Branch Office Structure:
Sales Strategy
• Relationship based selling - Sales strongly tied to individual FSR’s relationship with suppliers -Sales Force of 300 people with no formal sales training -Sales Force used a lot of “T &
E” Typical sales
force • Gender: Men and Women • Age: 30’s and 40’s • Personality: high energy, highly aggressive, strong monetary motivation • Education: high school graduate – Most did not have college degrees Problem with strategy
• Sales Force challenging to retrain • Sales Force “wine & dine” customer s instead of solution selling -creates a lack of customer loyalty. • High Turnover Rate -lack of company loyalty.
• There was a need to change the work culture in the company so Kaufman launched “the first class hiring from college”. Sprout Background
• Arrow needed more salespeople, but wanted to change the make-up of sales force. • Decided to hire kid’s fresh out of college. • The plan was to go on college campuses, interview kids, choose the best ones, make offer, hire, train, and send to the field.
Objective of Sprout training.
• Upgrade professionalism of sales force by hiring kids and molding them into modern salespeople • Teach classic sales skills. • Teach how to manage territory, cold class, overcoming objections, and how to close sale.
First step of sprout Hiring
• Train Arrow managers how to interview college students. • Taught managers to look for self -starters, goal-orientated, leadership skills, and people skills. • Conducted mock interviews with senior students. 2nd step - sprout Training
• Went to company headquarters for weeklong orientation. • Sprout’s sent to warehouses for two weeks. • Six months of on the job training.
• Returned to headquarters for a week of sales skills training Formal training Program
• Needed more formal training program • Rented training facility of Xerox where sprouts would live for 13 weeks of classroom learning• 13 weeks of on the job training • 3 weeks of training before entering field permanently • GMs noticed huge difference in sprouts Sprouts Compensation • New Recruits - $18,500• First year “Sprouts” - $24,000• Second year “Sprouts” - $27,000• Competitors - 30 to 60 percent more - First year “Sprouts” - $30,000 - Second year “Sprouts” - $40,000 to 45,000. Types Of trainings: At Arrow electronics types of training can broadly classified under 3 headings
Product Training :
Because of the technical nature of the product it is very important that each sales people aware about the detail specification, performance standards, ratings, price , competitors produc t. So rigorous training is provided by senior technical manager. Methods: - Product presentation, demonstration, practical application Evaluation: - Immediately after the training
Soft Skill Training :
Since Sales force is the main point of interface to customer they represent the company itself, so it is very necessary to impart professionalism in the interaction, so that it will leave the positive image and sincerity of company.
Objective:- Business plan, Team building , verbal and non-verbal communication
Duration :- Seminars organized twice in a year
Trainer :- External Trainer
Methods :- Lectures , Role play, Team building exercises, life stories.
Attitude Building Training :
Apart from the product knowledge and sound soft skill, what really matters to the sales people is the right attitude to approach the client. Hence in this particular training sales force is imparted with some basic tips to approach the customer, How to do cold calling and when to probe ? , how to probe ? , when to close ? Video and/or audio c.ds, D.V.Ds
Trainer :- Professional trainer from outside organization.
Place: - In car, home etc.
Methods :- Lectures, life stories, Video and/or audio c.ds, D.V.Ds
Evaluation :- No evaluation
Merck India Introduction
Merck in India has headquarters in Mumbai. It has mainly four divisions with overall sales of Rs. 6580.7 million (Jan- Dec 2012) Merck Serono - Transforming lives through medical science
Merck Serono is the largest division of Merck. It markets innovative prescription drugs of chemical and biotechnological origin. Merck Serono focuses on highly specialized therapeutic areas such as Neurodegenerative Diseases, Oncology, Fertility, Endocrinology and Rheumatology. Consumer Health - Reach for a better life!
The Consumer Health division offers high-quality over-the-counter products to enhance the quality of life of consumers all over the world. Our brands are available in many countries in Europe, North and South America, Asia and Africa Performance Materials – Experience Innovation
Merck’s Performance Materials division offers highly innovative materials, advanced technologies, and high-tech chemicals to clients in the consumer electronics, lighting, printing, plastics, and cosmetics industries. Our market leader products include liquid crystals for LCD displays, new lighting technologies, and functional and effect pigments. Merck Millipore - Advancing Life Science Together
Our Merck Millipore division offers solutions that enable scientists to conduct life science research easily, efficiently and economically. With a range of more than 40,000 products, Merck Millipore is one of the top three suppliers of tools to the life science industry. The division comprises three business units: Bioscience, Lab Solutions and Process Solutions. Merck Performance Materials division has 20 sales people, a National sales Manager and a Business Head. The marketing team is different. The 20 people include the managers as well as sales representatives.
The main training give to the ales team includes:
Induction training
Product training
Sales process training
Training on soft skill development
Product training:
Objective:- To impart technical as well as practical knowledge regarding the product
All sales person
Duration :- 1 day per product category
Trainer :- Senior Technical Manager
Takes place in initial days
Place :- Centralized training in a lab in Mumbai
Methods :- Product presentation , demonstration , practical application
Evaluation :- Immediately after the training and regularly twice a year
Training is conducted as and when new product is launched
Sales Training:
Objective :- To have a consistent sales
organization 80 % success in sales is achieved before visiting the customer
Making exhaustive database
Cold calling
FAB
process throughout the
All sales people
Duration :- Once during introduction and regular follow ups are conducted
Trainer :- Outside training specialist
Where :- Out of office
Methods :- Discussion and role play
Evaluation :- During the training and on the job
Training on soft skill development:
Objective:- Team building , verbal and non-verbal communication
All mid level sales employees
Duration :- 5 days a year
Trainer :- Outside training specialist
Place :- Out of office
Methods :- Lectures , Role play, Team building exercises
There is a training programmer called “Dronacharya “for senior level sales employees at SP JAIN institute of management Duration: - 1 year (MDP Program)
“Eklavya” for mid-level sales employees Duration:- 6 months at Wellingkar institute of management
Comparative Analysis:
It can be understood from the comparative study of above four companies that sales training is quite different for different companies in different industry. Some companies lay more stress on product training while some on sales training. Some companies also rely on soft skill development. Training is also imparted differently in different companies. Some have in-house training and some have third party or expert trainers. Sales training depends on the products of the company, like tangible products or in-tangible products and services. Sales training plays an important part in each organisation as based on it the future strategy and marketing plans are developed.
