A sales plan can be considered as a web created by the marketers to influence, attract and motivate and increase the will of the potential buyers to purchase a product of an organization. It is a strategy that sets out sales targets and tactics for the business and also identifies the steps a corporation will take to meet the desired targets. The below carried out analysis is focused on the The concept will also help the organization in setting up and choosing sales strategies that are suited to the target market of the business entity.In the present scenario the study is based on L'Oreal which is an established brand image in cosmetics
Personal selling is a promotional method where a salesperson sells a product face to face or door to door to a customer. It is a kind of direct marketing. Personal selling process through some steps that is prospecting, approach, assessments, presentations, follow up. This method is mainly depends on effective interaction between the salesperson and buyers. In prospecting a prospect is a buyer who is benefited by the product , approaching is a next and main step of selling where the salesperson face to face contact with the prospect to buy the product through the effective communication, it is important to a salesperson that he/ she should have a great research and knowledge of the company and the product. Presentation the centre point of the process which is creates the interest of prospect for the product through description and demonstration. Some times description is not enough for marketing, demonstration should be effective and the follow up or closing step is a result of this process where the prospect is turned in to a customer.
Promotional mix is a task of marketing, it is one of the 4 p's, which is focused on the target market, personal selling is a part of promotional mix (Léger, 2006). It includes public relation, advertising, sales promotion and personal selling. Characteristics of a promotional mix includes broadcast advertising or printing, direct marketing, personal selling, public relation, sales promotions etc. If we takes the example of L'Oreal, which is an international leading company of personal care products and cosmetics. L'Oreal has four segment in market for different types of people and different types of need. That are as follow-
Consumer products a personal care products which is familiar to Indian consumers(Maybelline, Garnier, Magic and Colorama)
Actives cosmetics (brands include Vichy, Sonaflore)
Professional products(Matrix, Kerastase)
Luxury products brand (Diesel, YSL, Ralph Lauren )
When we talk about the place factor of L'Oreal in promotional mix , it has development and research centres in six places worldwide and in this era internet is one of the most important platform for buying and selling and L'Oreal provides every product in any segment on online shopping which provides a positive approach on costumers (Jacobs, 2007).
In India Price is a matter of concern for L'Oreal , because it mainly related to consumer division. The L'Oreal products belong to the high qualitative group,So that they decides minimizes the price and increases the sales units. Company has offered discounts and promotional scheme on introductory products, free products as sample with other products etc .
When we take the promotion segment of L'Oreal has a advertising slogan “Because we worth it” and this one line says it all and really attractive and effective for the customer. It is international brand and the advertising of the products at a high level through the well-known models. Some times company has adopted the viral marketing strategy that is “product are marketed through the marketing messages ”.
Marketing orientation is a business which makes product comfortable and accessible. The management is to use in order to make confident that organisation is well organised in production and distribution. It believes on customer which are interested on product itself and they will buy on product quality. Selling orientation which focuses on the requirements of customer needs (Tuomikangas and Kaipia, 2014). Society orientation is the way which organisation operates in benefit of the society as entire. Marketing orientation is a business reproduction that target on delivering the goods to customer needs, requirements. L’Oréal develop their products on the basis of product or market orientation. Market orientations the best method to develop the business as it focus on the benefits, needs and satisfaction of customer. L’Oréal generates the buyer value and customer loyalty and frequently purchasing. L’Oréal develops products and services which plays as competition. L’Oréal shows the market recognition which involves the customer needs in the core of the organisation activities.
Sale is a exchange of goods in terms of money or in any kind form like through cheques. Team is a group of persons who distribute there work according to their capacity to complete the task on time. It is a group of sales persons who allocate their work regarding the sale of the particular product or either a entire range of products in the market (Chen-Ritzo and et.al., 2010). List of Sales team responsibilities which has been played by L'Oreal company in context to marketing and sale of its product are:-
1. Market Strategy- The people of sale team first know about their market strategy that how the products are sold in the market. The need of that product in the market should be analyse so that product can sale easily.
2.Price should be reasonable- the price of the product should be reasonable so that customers can afford to buy it and the design of the product should be attractive for selling the product in the market.
3.Areas restricted- The person should sell their product in the particular area in which he/she is allocated.
4. Good communication skill- The sale person who sales the product should have good communication skills so that buyer can easily purchase the product without any problems in that product.
New cosmetic products rang of L'Oreal
L'Oreal is a leading brand company and it has mainly four segment in the cosmetics market for different kinds of people with different choices (Márcio Tavares Thomé and et.al., 2012). That is consumer products, active cosmetics, professional products range, luxury products range .Now L'Oreal comes with the new range of products 'Elvive' fibrology Air with effective slogan '#RISEUP' ,this is a hair care range. Elvive provides all the solution related with hair care like shampoo, dry shampoo,conditioners and serums. The other range for different segment are Re-Create, Nutrifier, Infinium, sculpt, C.C cream. When we talk about the skin care range L'Oreal is here with a great solution for rejuvenation that is Revitalift 'filler renew' and Extraordinary facial oil essential. Facial oil is a new product range inspired by old traditions.
Sale strategies-Sale strategy are those strategies that how the company will sell their products according to there plans in the market which automatically increase their sales in the future by which certain objectives can be achieved by Lo'real. Some of the types of sales strategies are as follows:
- identify the targets- the company first have to find out the targets regarding their sales that how much sale to be done in a day, week etc.. so it is easily for the company to sell their products.
- Understand your buyers- the company should sell only those products which are in the highly demand and can satisfy the customer needs (Sheldon, 2006).
Corporative objectives impact on sales strategies is that it impact on the targets of the L'oreal company because company have to set their goals according to the organisation capacity. But on the other side it is helpful for the companies to make sale strategy to complete the task in time.
Selection and Recruitment- selection is that process in numbered of applications are received from the applicants and from that some of the applications are selected on the basis of job profile. On the other hand recruitment is process to identify the employees on the basis of selected applications whose post have arrived for the organisation.
The significance of applying recruitment and selection in hire a new member to join the sale team of L'orel company is that selection of member is done according to the need of the company profile job. The company will not select those member who are not doing their work timely which are allocated to them. When the organisation select the right person for the job, then train them well and treat them with appropriately because these people are not only for to give good result but also for a longer stay in organisation to achieve the organisational goal on time (Gupta and Kohli, 2006). On the other hand recruitment process is necessary to recruit those members properly for which they are selected which will give the benefit to the company in a longer time period. In a sale team it is necessary to select those people who are willing to that work and trained them properly to sale the products in the market with strong power communication skills.
Role of effective motivation, remuneration and training on sales management
Motivation plays important role in a organisation and for the sales management motivation works as a booster to the employees because it impacts both mentally and physically. An employee who is highly motivated and have a willingness to achieve the goals could increased the productivity, revenue. Whether remuneration is to motivate the employees through rewards and compensation for the work. There are tow types of remuneration price rate or time rate. And training it is essential for the sales and marketing segment. To provide upgrade information to their salespersons, trained them according to the market trends is important.
Like any other organisations L'Oreal depends upon these functions as it is a leading company of beauty essentials so the marketing and sales department should be effective and highly upgraded with the sales and marketing techniques (Feng, D’Amours and Beauregard, 2008), they must have a knowledge of new sales techniques if any and for this motivation and remuneration provide boost up to them.
L'oreal company will plan the following activities to organise the sales activities and measures to control sales output:
- Planning and Organising the work with in a time period- The company will first make the plans and organise them with in a time period. The plans regarding the how to sale the product in the market, what strategies should be follow, whether this product will satisfy the customer needs or not etc.. now organise these plans in the different department clearly. So the employees do their there work in a particular point of time.
- To divide the work- the work should be divided on time to the employee according to their capacity.
- It does not consume time, not very expensive- while organising the sales activities it does not time consuming and expensive (Grimson and Pyke, 2007).
- Sale activities should be done in a allocation of budgeted resources.
To control the measures of sales output can be done through the comparison between the last year sale and current year sales output. If in the last year there were very expensive cost while measuring the sales output then it should be control and in limits of the funds. The work which are divided to their employees should not face any kind of difficulties.
Sales planning and management is managed and maintained by making effective use of database of the company in order to attain effective results for the organization. The database helps in analysing and estimating the demand in an appropriate manner (Ross, 2015). L'Oreal group has a wide range of consumers within the market. To manage and maintain the sales operations, the sales manager focuses on effectively recording the demand estimation and generating effective results accordingly. Database is a vast collection of important information related to consumers, sales and demand analysis. It will help the business in creating an effective and well developed impact on sales planning and analysis (Oliva and Watson, 2011). Database will help the company in attaining effective past data of the organization. The company may use the same for adopting trend analysis strategy for the business and develop high growth measures within the market. In addition strategy of ECRM may be used by the company for promoting and developing foundation sales base for the business. In addition to this well developed software such as electronic consumer relationship management etc. helped in managing the valuable information and developing effective marketing measures as well. Furthermore, database helped the company in analysing the target consumers for the business and targeting the same for enhancing market sales and developing brand image as well.
To enhance the market share of the company by delivering high quality products and services to its buyers and fulfilling all expectations of its stakeholders (Kaplan and Norton, 2008).
- Establishment of 30 new franchise outlets in India.
- Increase overall sales of the company by 15%.
- Increase demand and brand awareness of the company in Indian subcontinent.
- Developing international sales and marketing team.
- Extensive market and competitive analysis.
- Develop full range of products and services to meet new market requirements.
- Develop aggressive promotion and sales strategy for enhancing brand awareness in new market.
- Establish consumer relationship base for Indian market and other neighbouring countries.
- Adopt undifferentiated marketing strategy.
- Target on young and middle aged people.
Key determinants of performance:
- Analysing area wise sales on monthly basis.
- Analyse the number of stores established.
Evaluate customer demand on quarterly basis.
Following are the different opportunities available to L'Oreal group to sell the products and services in international market:-
Emerging market- It can be assessed that in the current era of globalization, people are constantly focusing upon improving their standard of living. Hence, it is essential for firm to focus upon entering into Indian market and thus government has provided an opportunity to carry out free trade.
Free trade- However, there are various developing countries which are offering free trade at international level and thus it helps in improving the economy of country. Hence, it is an opportunity for L'Oreal group to expand and grow its business so that high profits can be attained.
International marketing- Main focus of international marketing is that it helps in making strategic decisions so that firm can easily enter into foreign market and thus enhance its market share (Fleischmann, Meyr and Wagner, 2015). Therefore, expanding the L'Oreal group business in Indian market helps them to identify potential customers and thus provide them quality goods in order to enhance the sales and profitability.
Market entry: This is a challenging issue for the business unit as it helps in analysing well developed means of establishing business in new markets. Measures such as direct exporting, franchising, strategic alliance, joint venture, partnership, etc. are the common measures. L'Oreals group will adopt licensing or the same as it will be cost effective and will help the business in attaining business objectives.
Branding: Standardization and adaption are the two common means of branding which companies can use to enhance its product sales. The potential of Indian market is high and the opportunities for the business growth are wide. Thus, Curry’s will use mixed approach for product branding. The marketing mix of business will reflect product as standardised while place, price and promotion will be adopted according to the Indian market (Slack, Chambers and Johnston, 2010).
Distribution: Different distribution strategies will be adopted and developed. For attaining raw material and logistics, business will develop effective logistics and will open the business outlet in populated and growing cities of country. The domestic supply chain will be developed on the traditional basis to attain high business objectives.
Following are the different trade shows organized regarding home appliances and electronics segment to products the product globally-
- Exhibition- In such type of strategy which helps L'Oreals group to promote their brand during the exhibition and thus attract potential customers in order to enhance their market share. It provides an effective platform for firm to introduce their innovative products to visitors within exhibition i.e. both consumers as well as suppliers and thus develop relationship with them in order to achieve desired outcomes (Jacobs, Chase and Chase,2010).
Exhibitions and trade-fairs are the effective measures to target potential buyers and expand business opportunities in the market. L'Oreal group specialises in cosmetics segments. Exhibitions and trade fairs will provide the company an effective and high opportunity for growth and development of the business. It will help L'Oreals group in attracting wide consumers in India.
The sales plan for L'Oreal group exhibition and trade fair will be
L'OREAL TRADE FAIR AND COSMETIC EXPO.
Date: December, 07, 2016.
Location: Mumbai, Hyderabad, Delhi (High market demand and platform for sales)
Cost of participation: INR 10000.
Product categories: Cosmetics and beauty products.
Motive of exhibition: Introduce products to target consumers and enhance demand and sales of products
Expected outcome: Analysis of market potential and promotion
From the above carried out analysis an effective marketing and sales planning drive high growth prospect for L'Oreals. Unique business strategies are designed by L'Oreals in order to attract maximum buyers for the products and services offered. Further the significance of recruitment and selection procedures for the organization is evaluated and also the motivational theories used by the management and role remuneration is explained.
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