Comparative Study of Abb, Tatatelecom and HCL

COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
PROJECT ON SALES MANAGEMENT
A COMPARATIVE STUDY OF SALES FORCE OF ABB, TATA TELECOM & HCL IN MARKETING OF SWITCHING DEVICES IN INDIA
Submitted to :Submitted b :-
PREFACE
The Project was taken up in a broad perspective of comparing the sales force of various (in fact three) companies and thereby understanding the working methodology and functioning of a sales organisation. We have considered certain parameters and guidelines with respect to which we compared TataTelecom, ABB and HCL who have a common product Switching Devices.
The project not only throws light upon the basics of sales management but also gives a nice picture of witching device
market in !ndia by comparing the basic functioning of sales force of above said companies.
ACKN !LE"E#ENT
We would like to e"press immense gratitude to all the employees of #$% &oida' ())' *alkaji and T(T(T+%+$,-' .urgaon who have taken immense pain to entertain our group and spent their precious time to fill up the /uestionnaire and imparting the necessary information' +specially -r. 0.P.-aharane' -r.
1amakanth of #$%' -r. #.*. Pandey of ()) and -r.
hailendra
*umar Pandey and 2ineet 3iwan of T(T( T+%+$,- who have helped us throughout. We would also like to thank our Professor -r. urendra anghwan for guiding and motivating us in a very practical way sometimes as a friend and sometimes as a guide in accomplishing this project.
S$N PS%S
witching 3evice is a generic term and includes various kinds of product' which are basically used for data transmission and telecommunication. These electronic devices are made up of semiconductors and very costly and have only industrial application .To visuali4e them more we can see the product description later on in the project. Though the product we have chosen is too technical and appears as if there would be very less re/uirement of direct selling in marketing of the product. )ut it was &eall' s(&)&ising and inte&esting *o& (s also to +now the im)o&tance o* di&ect selling in the ove&all ma&+eting st&ateg' o* the )&od(ct. We also studied the various other aspects of the sales organisation e.g. the 5uota system' elling objective' Training need identification'
Performance appraisal etc and prepared a very concise report comparing all of them and later on highlighting the commonalities and differences in them
$,-P(&6 P1,7!%+
HCL %NF R#AT% N S$STE#S
#$% !nfo systems %td. (#$% !nsys) is !ndia8s premier information technology company. With its in9depth e"pertise in developing solutions spanning diverse technologies' #$% !nsys aims to propel its course on to the high9growth path of 8Total Technology !ntegration8. %everaging its e"pertise in total technology solutions and services' #$% !nsys offers value9added services in key areas such as (P implementation' software applications' networking consultancy
and management and a range of support services. To capture the two ends of the market spectrum 9 enterprise solutions and P$s 9 #$% !nsys has made significant strategic infrastructural investments in the Professional ,rganisation ( ervices ,rganisation (P ,)' the upport ervices
,) and in its manufacturing plants at &oida and Pondicherry.
The approach is to view hardware as one of the key components of the total solution. The build9up of the services business (both of P , and ,) would
enable #$% !nsys to offer complete solutions and will also raise manufacturing volumes to internationally competitive levels. +stablished in :;;<' #$% !nsys8 P , provides single9window enterprise solutions in key vertical segments of telecommunications' manufacturing' finance = banking' government' utilities and transportation. pearheading
#$% !nsys8 thrust on software e"ports' the P ,8s infrastructure comprises a taskforce of >?? software specialists' four software factories with +!9$--
level < certified processes' and dedicated 8$entres of +"cellence8 for (P and telecom solutions. ignificant (P implementation projects by the P , amsung. P ,8s
include .eneral -otors' #- %ancer' *alyani )rakes' and
projects involve high9level integration projects and functional consulting and implementation services for ERP (+nterprise 1esource Planning). $ontinuously increasing customer e"pectations and applications' its focus on integrated enterprise solutions have strengthened the #$% !nsys ,8s
capabilities in supporting installation types ranging from single to large' multi9 location orders. The ,' comprising a direct support force of over @??
members' is operational at :A: locations across the country and is the largest such human resource of its kind in the !T business. ( majority of the , has
been specially trained in supporting solutions' the company8s key focus area. #$% !nsys8 manufacturing facilities are ! , ;??: 9 B??? = ! , :<??: certified and adhere to stringent /uality standards and global processes. With the largest installed P$ base in the country' three indigenously developed and manufactured P$ brands 9 8!nfiniti8' 8)usybee8 and the 8)eanstalk8 and its robust manufacturing facilities' #$% !nsys aims to further leverage its dominance in the P$ market. #$% !nsys8 8!nfiniti8 line of business computing products is incorporated with leading edge products from world leaders such as !ntel. ( fully integrated and business9ready intranet family of servers and workstations' the 8!nfiniti8 line is targeted at medium and large companies to help them to manage their intranet9related applications. (s customers8 needs mature' the !T industry has witnessed a continual evolution through a progressively finer segmentation of markets. To become a dominant player in providing global !T servicesC #$% !nsys has reorgani4ed and consolidated its hardware and services businesses. Towards this' it has set9up overseas subsidiaries in the 0 ' the 0.*.' (ustralia. The 7rontline division of #$% !nsys markets national and international brands of computer systems (including Toshiba %aptops) and peripherals within the ingapore' -alaysia and
country. With its e"tensive network of @?? resellers across D?? cities' 7rontline 3ivision has actively promoted the penetration of P$s in the home and the small officeEhome office ( ,#,) segments. To provide its users innovative support services and solutions' the 3ivision has established a countrywide network with B?A partners across :?? cities' termed the F upport &etF. 7ocusing on the small and medium enterprises ( -+)' the small officeEhome office ( ,#,)' the home and the 7irst Time 0ser (7T0) segments' the 7rontline 3ivision aims to become a dominant purveyor of !T products by value added services and enhanced solutions to its customers. #$% !nsys8 ,ffice (utomation 3ivision' previously known as #$% ,ffice (utomation' markets and supports Toshiba photocopiers' !n 7ocus multimedia projectors' 3uplo digital duplicators' +ricsson +P()G' Telephone amsung *ey
ystems' and &okia cellular phones. The 3ivision8s vast
distribution and support network spanning over :?? locations and over <?? e"perienced personnel further reinforce its strong operational capabilities. (mong the specific initiatives undertaken by the ,( 3ivision are customer meets held across the country' President $lub meets' tele9audits' and setting up of !21 (!nteractive 2oice 1esponse) #elp3esks. #$% !nsys8 initiatives in setting national and international industry standards in technology' solutions and processes led to the establishment of two uni/ue programme 9 FProgram !nfinitiF in :;;B and F+nterprise B???F in :;;<. FProgram !nfinitiF is a consistent and continuous plan designed to upgrade and moderni4e #$% !nsys8 entire hardware and software capability to world9 class standards. F+nterprise B???F is a uni/ue programme with an aim to provide !T solutions to customers' to place them at the cutting edge of their respective businesses in the new millennium. !n keeping with its objective of
total /uality management' over H? percent of its employees are being trained under the Phil $rosby methodology of 5uality +ducation ystem. !n :;;B' #$% formed a joint venture company' #$% #P' with the international computer giant' #ewlett9Packard (#P)' and precipitated a technological leap by achieving world class manufacturing e"pertise in the country for #P8s 1! $E0&!G based business servers and workstations. !n :;;H' #$% and its joint venture partner' #P' re9organi4ed their joint business activities in !ndia through the buying back of #P8s B> per cent of e/uity in #$% #P by the #$% promoters. 7ollowing the government8s decision to open up the distribution of !nternet services to the private sector' #$% !nsys' under a new initiative called WWW.,W provides a complete range of solutions for the !nternet. These services include setting up of infrastructure for ! Ps' solutions for cybercafes' information kiosks' &et9on9T2' corporate !ntranet and e"tranet (2P&s)' infrastructure for smart cities and a set of management services such as facilities management' network management etc. With an enlarged business focus' #$% !nsys has strengthened its multiple strategic alliances with specialists to include world leaders such as !ntel for P$ and P$ erversC -icrosoft' &ovell and $, for operating systems and (P
software solutionsC Toshiba $orp. for business automation e/uipmentC
(. for specialist +1P solutionsC and ,racle' ybase and !nformi" for 13)platform. !ndeed' a vision to create enterprises of tomorrow.
ABB
The $ompany was incorporated on B<th 3ecember :;<; as #industan +lectric $ompany %imited. !n :;>A' the $ompanyIs name was changed to #industan )rown )overi %imited (#))). Pursuant to the cheme of
(malgamation of (sea %imited with #)) with effect from :st January :;@;' the name was further changed to (sea )rown )overi %imited (())) with effect from :Dth ,ctober :;@;. 7lakt !ndia %imited was amalgamated with ()) with effect from Ath ,ctober :;;A. 3uring :;;<9;A' a joint venture $ompany 9 K()) 3aimler9)en4 Transportation (.I ((dtran4) was established by ()) Lurich and 3aimler9)en4 (.' .ermany' in .ermany. ( subsidiary of (dtran4 was incorporated in !ndia vi4. I()) 3aimler9)en4 Transportation %imited which took over the Transportation )usiness of the $ompany effective :st January :;;>. ()) is a subsidiary of ()) Lurich' which is now an entity focused on T=3' automation and robotics. +arlier' ()) worldwide was into the businesses of power generation (through a joint company' ())9(lstom Power) and distribution and industrial systems. !t has recently announced the sale of its holding in ())9(lstom Power to (lstom for a consideration of +uro :.BAbn. o' ())8s only venture in !ndia would be ()) %td' as it would be getting out of the remaining ventures. Ca)ital, The (uthori4ed hare $apital of the $ompany is 1s.A??' ???'??? and the
paid9up share capital of the $ompany as at the end of the financial year
ended D:st 3ecember :;;; is 1s.<:<' :@D'A>?' consisting of <:'<:@'DA> +/uity hares of the face value of 1s.:? each. Sha&eholding Patte&n, (sea )rown )overi %imited' !ndia' is a partly owned subsidiary of ()) (sea )rown )overi %imited' Lurich' ())L# and 7lMkt ()' A?.;;N of +/uity wit4erland (())L#).
weden' a :?? percent subsidiary of ())L#' hold
hares in the $ompany. The balance stake is held byO 7!s
BB.:<N' 7!!s D.>DN' -7s B.DB' &on9resident !ndividual ?.?@N' &ationalised )anks ?.:AN' )odies $orporate ?.;DN' 3irectors and their relatives ?.?:N' & 3% (Transit) :.;AN and .eneral Public :H.@N. ()) %td8s business mainly encompasses power T=3 and industrial automation. The T=3 segment is e"pected to be a major beneficiary of new projects of Power .rid $orporation of !ndia %td (P.$!%)' and the proposed privati4ation of the T=3 segment. !ncremental capacities of B@???-W have been targeted by B??B. +very -W of power generating capacity leads to an 1sB?mn demand for T=3 e/uipment. !ndustrial systems are e"pected to stage a recovery with an upturn in the economic cycle and increase in core sector investments ()) has the capability to manufacture a whole range of T=3 e/uipment comprising of transformers' #2 and -2 switchgears' cables' capacitors' sub9stations and management systems and a host of other e/uipment especially #23$ e/uipment. ()) has begun the rollout of the <??*2 Trafostar transformers from its recently commissioned transformer facilities at -aneja in 2adodara.
TataTelecom
etting up business on the !ndian sub9continent in :;@H' today Tata Telecom is an undisputed total business solutions provider. With technical
collaborations and partnerships with (vaya' Tata Telecom is fully e/uipped to offer a gamut of state9of9the9art communication systems. Tata Telecom is a rare organisation in !ndia with proven and comprehensive skills in 1=3' Technical support' -anufacturing' e"pertise. Tata Telecom8s )usiness $ommunications 3ivision ()$3) provides complete communication solutions for )usiness +nterprises. !ts product range includes +P()Gs' *T ' 2oice -ail (!.2.18s)' and ystems' !nteractive 2oice 1esponse = &etworkingP olutions. ystems ales and $ustomer upport areas of
$T!
,ur constant endeavor to understand comple" customer needs has resulted in a range of products and solutions. The range includes Telephony' -obility olutions' -essaging olutions' $onferencing' $all $enter olutions' and
3ata &etworking.#ence'Tata Telecom provides solutions across all segments 9 #omes to hops' mall to %arge offices' 7actories and large !ndustrial units' )anks' $all $entres and D9< tar #otels' #ospitals' -&$s' large !ndian
corporates' departmental stores' etc..The unbeatable product range of Tata Telecom includes the latest in each segment
The technological superiority' comprehensive 1=3' upgraded systems' wide service Dreach' strong customer base and the e/uity associated with the Tata heritage .
A-o(t The P&od(ct . Switching Devices
+P()G of TataTelecom
+-$ of #$%
*ajun -HH? of ())
7ig. witching 3evice products

EPAB/ o* TATA TELEC # is designed specifically to provide the reliability re/uired for the convergence of voice' data and video into a common infrastructure' and features its uni/ue witch (rchitecture 7or +"treme
1esiliency ( (7+1Q) that distributes critical switching' management and processing functions. E#C o* HCL is the foundation for a total networking solution. !t is an e"ceptionally powerful @?R .bps resilient multiservice' multilayer' intranet service center and the first enterprise backbone switch which integrates multilayer switching over :?? -bps' : .bps and (T- over a single' fully9 redundant hub. This support for a broad range of network environments allows enterprises to use any combination of these technologies with no need to adhere to any single technology today The modular' enterprise9class +a0(n #1T12 #(lti*(nction Switch o* ABB is designed specifically to provide the reliability re/uired for the convergence of voice' data and video into a common infrastructure' and features its uni/ue witch (rchitecture 7or +"treme 1esiliency ( (7+1SBD:) that distributes critical switching' management and processing functions. Basis * the St(d'
We developed certain guide lines and decided the following key parameters which we considered as the most important for visuali4ing the functioning of a sales force :. The role of personal selling in overall marketing strategy B. elling objectives and strategies.
D. *ey objections faced by sales personnel <. ,verview of the sales division A. 1esponsibilities of the sales e"ecutives. >. trategies for tracking competitors activities process' election' Training and compensational
H. 1ecruitment
strategies for the sales force @. 7actors taken into account while assigning /uotas ;. Performance appraisal system and methods :?. )asis of formation of sales budget and sales forecasting ::. 1eporting format and fre/uency :B. i4e of the sales force
Theo&etical Pe&s)ective
34 Selling o-0ectives and st&ateg' :. B. 5ualitative (%ong term objective) 5uantitative ( hort term objective)
5(alitative o-0ectives are long term and concern the contributions management e"pects personal selling to make in achieving. These objectives change little over time and generally are carried over from one periods promotional program to ne"t. The basic considerations influencing the setting of /ualitative personal selling objectives are closely related to the key decisions on sale policies and personal9 selling strategies. These decisions
determine the kind and si4e of personal9selling operation that like company has and its role in the total promotional program. (fter the role is defined' /ualitative long9term personal9selling objectives become the major
determinants of the types of /uantitative short9term personal selling objectives. 7or e.g. a. To reach out and obtain new customer. b. To TserviceU e"isting accounts i.e. to maintain contact with present customers' take orders and so forth. c. To keep customers informed on changes in the product line and other aspects of marketing strategy. d. To provide advice and assistance to middleman on various management problems. e. To collect and report market information of interest and use to company management.
5(antitative
-0ectives are short9term objectives and are adjusted from one
promotional period to other. The sales volume objectives9 the rupee or unit sales volume management gets as the target for the promotional period9is the key /uantitative objective. (ll other /uantitative selling objectives derive from or are related to the ales volume objective. 7or e.g. a. To capture and retain a certain market share.
b. To obtain sales volume in ways that contributes to profitability. c. To obtain some number of new accounts of given types. d. To keep personal selling e"penses within set limits. e. To secure targeted percent of certain accounts business. ales related marketing policies are guidelines within which the company seeks to reach both /uantitative and /ualitative personal selling objectives. They provide general guidance on what to sell and whom to sell to shape the fundamental nature of a company and are important determinants both of the kind of sales personnel need and their total number (the two components of personal selling strategy). Pricing policies' too' have an important impact' especially on the kind of sales staff needed9 sales people have to persuade target buyers not only to accept the companyIs products but at the price asked. ales9related marketing policies' like personal selling objectives' vary
with the competitive setting. !t is especially important that they be attained to a companyIs particular situation under conditions of monopolistic or oligopolistic competition' much more so than when there is no direct competition. Personal9 selling strategy involves the implementation of sales policies to achieve personal selling objectives. 7ormulating personal9selling strategy re/uires analysis of competitive posture to determine the kind of salesperson needed and the si4e of sales force. Personal9selling strategy ultimately must be individuali4ed for each customer and prospect' each salesperson' in the final analysis' determines how and when to do what in the contacts with each assigned customer. (lthough management makes the key decisions on personal9selling strategy' each salesperson determines (through the /uality of job performance) the effectiveness of that strategy in achieving the companyIs overall personal9selling objectives.
64Ke'
-0ections Faced B' The Sales Pe&sonnel And The P&o)osed
Sol(tion *ey ,bjections :. Price ,bjection !t is the most common type of objection raised by prospects in which they e"press their inability to purchase at such a higher price. ometimes prospects pretend that the price is higher for them with a view that salesman might decrease the price. #andling objections a. ,ffer substituteO $heap substitutes. b. Justify the priceO )y e"plaining about the /uality' utility and durability of the product. c. 3iscount offers. d. ,ffer installment payment. e. Price factor can be avoidedO and services of products. f. B. how proofsO how catalogued copies of invoices cash bills etc. tart talking about durability' utility
5uality ,bjection !t is relating to design' durability' si4e' colour' packing etc. #andling
To prove superiority of the product by making a comparison of competing products. #e can show laboratory reports' e"perts opinions etc. in suitable cases to meet such objections. D. Payment ,bjection !t is regarding lack of ready cash to pay the full price of product. #andling ,bjection ,ffer credit or pay in installment. <. ervice ,bjection !t is relating to repair' delivery of goods' timely attendance of the worker etc. #andling ,bjection +mphasi4e the service facilities offered by the organi4ation. #e can illustrate the prompt service by e"pertIs servicemen' /uick delivery at doorstep' prompt attendance of workers etc. A. Time to buy objection Prospect may say he doesnIt want to buy now or he is not interested in the product at present. #andling ,bjection +mphasi4e value of time and induce them to purchase now. !n some specific cases he can say that in the near future price is going to rise or the new model will be too costly or the new model will enter the market after a long period and so on.
7.
Res)onsi-ilities o* the sales e8ec(tive and the deg&ee and level o*
coo&dination he has with the P&od(ct 9 B&and manage& 1esponsibilities :. ales Program #e takes initiative in establishing short term and long9term sales goals of the division and in collaboration with other marketing e"ecutives gets sales' profits' growth and other goals. B. ,rganisation ales -anager establishes an effective plan of organi4ation and methods of controlling the activities of members of the sales organi4ation that will provide sufficient time for carrying out the full time of departmental responsibilities. D. ales force management ales -anager identifies promising sources for recruitment of new sales personnel and sets standards for selection of the most promising new personnel from among recruits. #e ensures that sales personnel are properly motivated so as to achieve optimum sales performance. <. !nternal and +"ternal relations #e develops effective working relations with other department heads and the general manager so that significant sales development can be translated into appropriate course of action.
#e maintains relationship with key accounts as well as with sales and other key personnel. A. $ommunications ales manager keeps the vice9president of marketing informed on sales result and future plans of operations. #e also develops a system of communication with other sales personnel that keeps them informed of overall departmental sales' objectives' results' etc. >. $ontrol ales manager consult with production manager so that production rates and inventories are geared as closely as possible to actual sales need. Relation !ith P&od(ct #anage& +"ecutives responsible for product planning and the formulation of product policies make numerous decisions. Periodically' each product in the live needs appraising in terms of its profitability and its ability to fulfill buyerIs wants. When products come up for review' decisions are made on whether each should be retained' changed or improved' or dropped from the line. ,ther decisions are made on adding new products' on changes in product design and other product features. till another product decisions concern
product /uality' services rendered in connection with product sales and packing. Product decisions are often a shared responsibility of marketing' production' research and development and financial e"ecutives provide important inputs for such decisions. Their continuous contact with the market through
subordinates and sales personnel provide them with feedback about product performance and acceptance generally not available from other sources. :4 Rec&(itment P&ocess, Selection, T&aining ;content, *ac(lt', d(&ation<
and com)ensation st&ategies *o& the sales *o&ce4 Rec&(itment !t is the process where the prospective candidates are found and encouraged to apply. The aim is to attract potential salesmen to fill up vacancies. !t is an end less job. The appointment of right person possessing all /ualities of good salesmen is important and it depends on a sound recruitment policy. .ood recruitment policy builds a stable working force and helps in achieving goals in a systematic and planned way. ources of recruitment :. B. !nternal +"ternal
!nternal ources. i) Promotion of employeesO incere and hardworking
employees in organi4ation may be promoted to fill up the vacancies. ii) 7ormer employeeIs re9employment.
+"ternal recruitmentO i) ii) (dvertisement +mployment e"changes
iii) iv) v) vi) vii) viii)
1ecommendations $ollege and chool $ompeting 7irms &on9 competing firms elf9offers Wholesalers' retailers and customers.
Selection !t is the process of choosing some out of the total candidates provided by recruitment. The main aim is to find out the most suitable candidate and leave out misfit candidates. -ethods of electing salesman :. 1e/uisition alesman has to send a re/uisition to the personnel department stating the number of candidates re/uired and their job specifications. B. 1ecruitment +ither through employment e"changes or through newspapers advertisements or through any other media. D. (pplication )lanks
!t is a written formal application submitted by the person in search of a job. !t re/uired i) ii) iii) <. Personal datasheet Job description sheet -an specification sheet.
1eferences The candidate is re/uired to give two or three references. The sales manager has to check the references mentioned by the candidates. This he can do by asking the persons stated or reference' to send confidential report about the candidates' sometimes telephone calls or direct face9to9face en/uires can be made to references which reveal the true information about the candidates.
A.
Preliminary !nterviews !t is used to leave out misfit candidates. The panel of e"perts decides the number of candidates to be called for the interview. The candidate is interviewed by a committee to judge his suitability for the job.
>.
Psychological Test To test ability' skill' emotional attitudes' behavioral patterns and aptitudes. There are various types of tests such as intelligence test' personality test' aptitude test' capacity test etc.
H.
Physical e"amination
alesman is re/uired to possess a standard good health. (
candidate suffering from any physical defect or deficiency is out rightly dis/ualified. ( candidate having a poor health becomes burden for organi4ation. @. 7inal interview (ll information regarding /ualification' e"perience' reference' physical test' psychological test etc. helps the selection committee to arrive at a final decision. 3uring final interview candidates are asked some crucial /uestions regarding their willingness to accept the job' their responsibility whether they want to continue or not etc. 7inally' if the selection committee is satisfied about the candidate' he is selected for the appointment. T&aining o* Salesmen :. B. D. <. A. >. H. To improve the performance. To influence people in a better way. Provides e"pert knowledge. 1educes wastage. )rings more income. 1educes control and supervision 3evelop high morale.
-ethod of ales training
:. !nitial Training !t is given to candidates on their admission to the organisation to introduce salesmen to organisation and various sales policies. B. ,n the Job Training alesmen are given opportunity of performing the role of a typical salesman. uch training is made under the supervision of senior salesman. !t enables salesman to know correct method. D. chools and $olleges ome big organi4ations have training centers. admit their trainee mall firms may
alesmen into schools and the colleges'
which impart coaching in salesmanship. <. $orrespondence Training !t is adopted where salesmen are widely scattered and training needed by them is not very important. The training materials with necessary instructions are sent to the trainees by post regularly. !t is just like postal coaching and perhaps the easiest and cheapest method of training salesmen. A. ales meeting and conferences They are held at regular intervals like weekly' monthly or even half yearly.
>.
ales manual
They contain information about the organisation' its history' its policies' particulars of products' advertising etc. H. 2isual Training 2isual Training programmes are imparted with the help of slides' black boards' graphs' models etc. @. 1ole Playing 0nder this method a play is presented on stage so that the trainee salesmen is able to gain enough knowledge. (fter the drama is over' a general discussion can be made and newel recruited salesmen can be given necessary instructions. ;. )rain storming 7ive or seven traineeIs salesmen are grouped under the chairmen ship of an e"perienced salesman. The chairman gives problems to the trainees and the trainees try to find out the solutions to such problems and write the same on the notebook. Rem(ne&ation method :. traight alary -ethod alesmen are paid a certain amount as salary like other employees. alary is paid on the basis of time and not on the
basis of sales. There are three elements in a straight salary method of remuneration. i) ii) alary (llowances
iii) B.
!ncrements traight $ommission -ethod 1emuneration is paid on the basis of amount of sales made. This method isC effort orientedI and is based on volumes of sales made. The salesman is paid commission on the basis of a predetermined N of net sales or profits.
D.
alary and $ommission method The sales force is entitled to a fi"ed salary and commission. The salary element gives the salesman the necessary security and comfort. The commission element is meant to reward hard working and efficient salesman who put such effort to increase the sales volume.
<.
alary' $ommission and bonus method The salary is paid for certain specific duties performed by the salesmen. !n case the salesmen put such effort or sells and a predetermined limit' he is paid commission and E or bonus. !t is meant for the results over and above certain satisfactory level of effort.
:4
Pe&*o&mance a))&aisal s'stem and method The purpose of a performance review is not only to help the employee understand what is e"pected and how she or he is doing relative to these e"pectations' but also to increase productivity and company loyalty. Performance reviews done
properly also reduce the chances that an employee terminated for performance problems could successfully sue the company. even steps can help you discuss performance with an employeeO :. %isten to your employeeIs self9appraisal before offering an evaluation. Then give a balanced picture of an employeeIs strengths and weaknesses from a written document that has been carefully prepared. B. (naly4e what you arte going to say. 6ou want to be tactful and sensitive remember' your job is to motivate' not destroy. D. 3iscuss differences and offer specific suggestion on how to capitali4e on strong points and improve weaknesses work with the salesperson to develop realistic goals. <. !f a disagreement occurs listen closely and ask for specific facts. 3onIt become defensive. tate your position directly
and clearly. 3onIt allow an emotional situation to get out of control. A. 1eview should never contain surprises. !f you constantly reinforce and give feedback on a regular basis' no one will be surprised. The appraisal is a chance to fine tune. >. 3onIt become therapistV !f any personal problems surface during the discussion that need more professional help' listen with empathy' then help them find appropriate help.
H.
3onIt tie salaries or bonuses directly to the review personIs performance' but also on the financial conditions of the company' the economy and what the competition is doing. !f you incorporate money with a review' the employee may have e"pectations that you are unable to meet. +nsure your employee understands that compensation decisions include review results along with many other factors and that the review alone is not the basis for salary and bonus action.
7ollowing up Three uggestions :. Written 1ecords ,nce the performance appraisal discussion has been concluded a manager should immediately make a written record ofO a. b. c. The overall appraisal for the previous periodC Plans that both parties agreed toC (ny personal commitments re/uiring specific action.
( copy of this summary should be given to employee. B. 1eflection 7ollowing each review is a good time to review your performance is leading the discussion. areO a. b. What was done wellW What was done poorlyW ome good /uestions
c. d. e.
What will be done differently ne"t timeW What was learned about the employeeW What was learned about self and jobW
D. 7ollow through ( third element of follow up is to insure that agreements are kept and plans followed. !f this is not done' the entire appraisal loses its impact and the employee assumes no one cares very much about performance. This phase of the follow up is the initial phase of the ne"t appraisal. 14Basis *o& *o&mation o* sales -(dgets and sales
*o&ecasting4 ales budget is a blueprint for making profitable sales. !t details out how much of what is to be sold during the operating period and by whom' to what customers are classes of trade. 3efined in simplest terms' a sales budget consists of estimates of an operating periods probable rupee and unit sales and the selling e"penses invested in obtaining these sales. ales budget is a projection of what a given sales program
should mean in terms of sales volume and net profits. )oth the sales9 volume and selling e"penses portions of the sales budget have their roots in setting of personal selling objectives which results in the two key decisions on personal selling strategyO
:. The kind of sales personnel B. The si4e of the sales force. The sales forecast is the general source for the sales volume portion of sales budget. The sales volume objective' derived from the sales forecast' is broken down into precise details as to the /uantities of products that are to be sold' the sales personnel or sales districts that are to sell them' the customers that are to buy them and the /uantities that are to be sold during different time segments in the operating period. ,nce these breakdowns have been' them estimates are made of the selling e"penses that will be incurred in implementing this sales program. The sales budget then uses the sales volume objective. $onse/uently' the e"tent of involvement of top e"ecutive in the early phases of budgeting depends upon the degree to which the e"ecutives participate in the forecasting program. 7ormat of ales )udget roductE1egion &orth +ast ( ) $ @? >? <A -id West ;? >? DA H? A? BA @? HA D? DB? B<A :DA West outh Total
=4
Re)o&ting Fo&mat and *&e>(enc', +very firm has its own ways to communicate between sales representative and sales officeC the choice of method is the responsibility of management. !t is however very much in the interest of salesman that such communication should be really ade/uate and a vital part of his work is to ensure that it is maintained. ales reports are necessary for the following four main reasonsO a. To provide information regarding salesman b. To provide information on the conditions prevailing in market. c. To provide a permanent case history for each account. d. To maintain communication between salesman and sales office.
!f you intend to perform any task to the best of your ability' you must approach it in the right frame of mind. The human mind tends to function at its best when following the well9trodden path of habit. The wise salesman' therefore' sets aside a specific time of day to write his reports. #e allows himself perhaps an hour or an hour and a half each evening for this purpose. -any salesmen prefer to allow themselves an hour or so in which to have a meal and KunwindI before they settle down to write their reports.
ince sales representation may be regarded as a profession' one cannot e"pect to work a nine9to9five stint and then finish for the day. The salesman is' of course' entitled to his leisure and providing he organi4es himself properly' he can have and enjoy it. The work he does' however' is not dull routine. To write lucidly' one must first marshal oneIs fact. !t helps if you have a logical mind. !f you have not' efforts must be made to adopt a logical approach to the information you wish to impart. The matter to be reported should be sub divided and set out under sub headings. entence should be as short as
possible. The long unwieldy sentence demands for greater concentration on the part of the reader than a short one. Paragraphs' too' should be kept short and consist of no more than two or three sentences. 3o not assume that the reader is immediately familiar with the detail of the situation. +nsure that each report contains a brief reference to the e"isting situation before the new information is provided. 3ifferentiate clearly between what has been stated to you by the customer as facts and what is only your own interpretation of the facts. !f a customer has given you information' which he has asked you to treat as confidential' state this in the report. The Fo&mat The *i&st )a&ag&a)h of your report should state the purpose of the visit. -any salesmen overlook than fact that their calls should have a specific purpose. +very visit should have a purpose and the report should state that purpose. The management is entitled to know the motivation' which caused you to visit the customer.
The second )a&ag&a)h should deal with the main subject of your visit. ucceeding paragraphs under suitable sub headings. hould deal with any
other items discussed. ,pinions and comment on the part of other should generally be kept to the end and entered under a suitable title such as K1emarkI. 7inally' the actions re/uired to be taken should be shown at the end of the report. This should state what is to be done by management or sales office personnel and also what is to be done by the representative himself. +ach action item should be numbered. ?4 Si@e o* sales *o&ce !t is difficult to determine the e"act number of sales persons that a particular company should have. Three basic approaches in
appro"imating this number areO :. Work load method The basic assumption is that all sales personnel should shoulder e/ual work load involved in covering the companyIs entire market' then divides by the workload that an individual shall handle' thus determining the total sales people re/uired. teps involved in this approach a. $lassify customers' both present and prospective into sales9volume9potential categories. b. 3ecide on the length of time per sales call fre/uencies on each class.
c.
$alculate the total workload involved in covering the entire market.
d.
3etermine the total work time available per salesperson
e.
3ivide
the
total
work
time
available
per
salesperson by task. f. $alculate the total number of sales people needed. This approach is attractive to practicing sales e"ecutives. %arge firms like !)- and (tandT have used this approach. B. ales potential method !t is based on the assumption that performance of the set of activities contained in the salespersons job description represents one sales personnel unit' not necessarily of any particular salesperson. With this assumption management can estimate the number of rupees of sales volume that each salesperson should produce. 3ividing this amount' into forecasted sales volume9the companyIs sales volume objective9and allows for sales force turnover results is an estimate of the number of salesperson needed. These relationships are summari4ed in e/uation &X EP (:R T) Where
&X number of sales personnel units X forecasted sales volume PX +stimated sales productivity of one sales personnel unit. TX allowance for rate of sales force turnover. D. <. !ncremental method $onceptually it is the best approach to determine sales force si4e. !t is based on one main propositionC net profit will increase when additional sales personnel are added if the incremental sales revenues e"ceed the
incremental cost incurred. Thus' to apply this method' one needs two important items of information a. b. !ncremental revenue !ncremental cost (lthough this method is the most conceptually correct' it is also the most difficult to apply in the real world.
The $omparative 3ata Presentation

-ost of the aspects we could find the difference and The commonalities among the organisation have been highlighted by different font
AAR%ABLES
TATA TELEC #
ABB
HCL
:. 1elative !mportance .iven To Personal elling #!.# -+3!0-9%,W 2+16 #!.#
1easonO They customi4e their witching devices
1easonO They
1easonO donIt They have an
customi4e much aggressive as the product marketing strategy goes as a part and want to clinch of large turnkey the cost. deal at any
based on the project. re/uirement = understand the customer more. 2. Selling
AAR%ABLES
TATA TELEC #
ABB
HCL
Objective
Selling objectives of Tata telecom are:
Selling objectives of #$$ are
Selling
objectives
of '() are
a) Emphasize overall benefit customers. of
a) Emphasize on high %uality of or&
a)
'igh
mar&et
share
This b) Emphasize benefit
as
very
clearly understood from their top do n and %uotas* etc. challenging budgeting
b) To reach out obtain and ne
overall
of customer.
customer.
c)
To
&eep
personal selling c) service! e"isting accounts i.e. to maintain ith c) To secure To! e"penses set limits. . ithin b) To obtain sales volume in ays
that contributes to profitability.
contact present
AAR%ABLES
TATA TELEC #
customers* ta&e orders
ABB
HCL
targeted percent of certain business accounts
and so forth.
d) To &eep customers informed changes the on in
product
line and other aspects mar&eting strategy. of
D. *ey ,bjections 7aced )y ales People
-ost of the 3o
not
face Tough to meet the
problems are much problems targets faced providing after services. in because of the high /uality
sales standards
AAR%ABLES
TATA TELEC #
ome of the problems areO 9 1elating repair 3elivery of goods Timely attendance of the worker to
ABB
HCL
olutionO &othing
olutionO &o steps taken as as such.
olutionO <H authori4ed service center all country on average Two centers over and an
apparent such
are within the reach of B
AAR%ABLES
TATA TELEC #
kames.
ABB
HCL
<.
ales 3ivision
ector Wise
1evenue based
.eographical 1egion wise
That
is
for That is amount to of profit you are the obtaining from
e"ample target
hotel industry' the customer or railways' or hospitals etc.
1easonO The person becomes e"perienced in the field. +. Trac&ing (ompetitor,s Trac& (ompetitors sales
1easonO %ess number of customer 1easonO customer is
and #igh
due importance interaction is given. essential.
They
also
They
maintain
consider mar&et
competitor analysis
AAR%ABLES
TATA TELEC #
actively from -Orders on -$usiness magazines - .ournals.
ABB
HCL
behavior e"tract information
and
report.
from customer.
/. The ay they use competitors information
-0ricing strategy
To defend
To be more competitive in mar&et. the
(ompetitors information is very for useful pricing
#$$
Sales
manager feels if you have to the
defend
strategy .The basic reason behind is to be )1 that is to get the
competitor then you must &no him
tender passed first
criteria is to %uote lo est
AAR%ABLES
TATA TELEC #
price 2they
ABB
HCL
call it )1).
understand ne
To
strategic
To ma&e strategic plans.
trends.
They
too
ma&e use of competitor,s information for pricing
strategy and other strategic planning H. 1ecruitment Policy They prefer 9 -)( They prefer 9).+. 9). Tech. 9-)( They prefer ).+. ).Tech
AAR%ABLES
TATA TELEC #
ABB
HCL
@. 5uota ystem
$ombination 5uotaO 9
1upee
sales $ombination 5uotaO
volume /uotaO
They
use 9
They
use sales /uota. their ales /uota They use this to control the sales (lso net
combination /uota control sales performance
rupee to volume
the (s
by
opinion volume
performance they follow
of both selling communicates and selling activities. non9 managementIs e"pectation )y to as
profit margin /uota sometimes as they emphasi4e more on net profit out of a transaction
T how
adopting this much for what type of /uota periodU. system monitor revenue they both ( advantage 1upee key of sales
AAR%ABLES
TATA TELEC #
ABB
HCL
generation as volume /uota is well the as that it is easily to
the no of units relatable sold out ince the other performance data selling e"penses' is through computing ratios percentages. such
performance against combination /uota
as
measured as N' it is also known Point as ystem
or
5uota. !t is a combination of sales
volume goals and goals. ;. Training &eed identification 0sually training imparted whenever )oss is report gives of a The groups head his identify the needs on of each person activity
observation
the weakness of reporting to them
AAR%ABLES
TATA TELEC #
there
ABB
HCL
is individual on
i.e. pass it on to the #1 his for further action.
introduction of based new technology. $ompany
dissatisfaction. !n ()) the boss keep track of
feels that in the sales force todayIs competing world technology keeps and he whenever feels that is
training
needed he refer on it to the training
changing and department. whenever such change occurs training imparted employees. :?. Performance (ppraisal ystem 9H?N on tendersEorder s won. 9B?N based based 7i" up a 3o not fi" any is to a
performance standard compare that.
performance and standard and follow
with P-
(Performance
-anagement ystem)
AAR%ABLES
TATA TELEC #
on tenders
ABB
HCL
<?
N !n this system the Top management
participated 9:?N on based new
based on &umber of new
customers.
customer . D?
identifies up some *1(s 1esult i.e. area are *ey s. the
N These
&umber of customer
areas in which the organisation has to emphasi4e more
complaint and these are the . D? N area where less
effort will give you more benefit. Then as per these *1(s each individual
based on winning the tenders
employee has to fi" up their own $ ! i.e. $ritical !ndicator achievement uccess .The of
these $ ! will be the stick yard of the performance of the
AAR%ABLES
TATA TELEC #
ABB
HCL
employee.
Pe&ce)tion "a) -etween the management and Sales *o&ce While interacting with the sales personnel and the manager we could find out the differences between their opinions as well the way manager perceive the things' his approach and way of behavior is remarkably different than his sales people. We would like to state following few things regarding this :. Pe&*o&mance A))&aisal s'stem, The major and most usual complaint we came across is about the performance appraisal. Though all of them have devised a matured performance appraisal system based on /uantitative
techni/ues what sales people say that they are actually nowhere. What actually matters is T #ow you tackle your bossU B. T&ac+ing Com)etito&O Though the manager gives lot of importance to competitors information we could hardly find that seriousness at sales man side D. T&aining, (nother area of anomaly is training need identification. Though management is satisfied about the training imparted to sales people what they say is training is like an unpredictable weather and comes and goes. They are not really aware how relevant and useful are they e"cept few of them.
Recommendation
34
Rede*ining )e&*o&mance a))&aisal s'stem, F&om &es(lt o&iented )lat*o&m to e**o&t o&iented )lat*o&m
Though most of the successful organisation practices -), (-anagement by ,bjective) and considered as highly result oriented but what we personally felt that this affect organi4ational culture as well demotivate sales people. ince sales activity are highly /uantifiable and traceable sales people must not be measured on the basis of end result alone. The methodology can be thought upon and our idea is in nascent stage. 64 T&aining m(st -e made a contin(o(s )&ocess Though most of the corporate trainer screams in their speeches training must be made a continuous process again we found the same thing .We felt People either donIt learn or learn it in a hard way .!t is of prime responsibility of management to ensure /uality training to the sales personnel.
%!-!T(T!,&
:) We could not get the sales report format as it was confidential B) We could not get detail information about the si4e of sales force. D) !t was very difficult to get access in the company and we had to wait for a very long period of time. <) We could not get the /uestioner filled in front of us so for that we had to move many times in the company which took a lot of time and effort. A) The three companies are situated at distant places from each other i.e. in &,!3(' .01.(,& and in *(%*(J!' which again was a big limitation. >) -ost of the sales force was in the field so it was very difficult to track them.
(nne"ure
:. 7illed up /uestionnaire

Comparative Study of Abb, Tatatelecom and HCL

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COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL

PROJECT ON SALES MANAGEMENT