INTRODUCTION OF COMPANY

Our Mission

To deliver superior value to our customers,

shareholders, employees and
society at large

Our Vision

In the global markets we enter we will be the significant Industrial Equipment supplier exceeding the
expectations of:

• Done with passion

• Always growing
Our Purpose

• To meet our customers needs for superior quality services.

• To provide a secure and challenging work environment for all our employees.

Our Values

• We are committed to supplying high quality products and superior service to our
customers.
• We believe in the individual, and that shared values and common purpose provide the
basis of teamwork.
• We believe in conducting our business activities with integrity.
• We believe in optimising our profitability in a manner consistent with our values.

Our Goals

• To provide our customers with products and service that are recognized as the best.
• To be a major player in the market.
• To implement employee training and development programmes that provide personal
growth for all our employees and enable them to make a meaningful contribution to the
Company.
• Create an environment that respects, integrates and balances the needs of our employees.

NOTE: This is a well established brand which has a good reputation in the market, though it is entering a
new line of product i.e., of Formal Shirts made of Pure Cotton, and has setup a new sales organization for
it.
 SALES ORGANISATION STRUCTURE

Head-Marketing

Marketing Research Promotional Customer Service

Sales Manager
Manager Manager Manager

Area Sales Manager

Salespeople
 ROLES & RESPOSIBILITIES

SALES PEOPLE :
• To be able to say the right things, in the right style, to the right person, at the right time
but of course one can't always get it right

• To assist area sales manager in development of sales forecasts

• To diagnose the needs of the customer

• To play the role of an intelligence agent

• To be a clever operator of words

• To be a change agent

AREA SALES MANAGER:

• To develop Skills & Career path of d sales people

• To Recommends sales policies to management

• To assess the training needs for the sales people

• To assist management in development of sales forecasts

• To motivate the sales people

• To evaluate the performance of each individual sales person

SALES MANAGER:

• To assign sales territories

• To recruit and select the sales force

• To plan the overall activities of sales team

• To train new and experienced sales people on the basics of attitudes, sales skills and
product knowledge

• To give on the job training to the newly employed sales people

• To motivate the sales force

• To discharge sales people with unsatisfactory performance levels within company policy
and employment law guidelines

• To make the sales force aware about any changes

• To direct the sales force

• To evaluate the performance of each individual sales force

• To analyze the performance of each sales personnel

MARKETING RESEARCH MANAGER

• To plan an achieve an agreed net percent profit on sales

• To study the market trends

• To consult the sales force to assess the market trend

 • To check frequency of consumer contact

• To investigate what areas are off target, the cause of under performance and take
immediate action to get on target.

PROMOTIONAL MANAGER
• To direct promotion programs that combine advertising with purchase incentives to
increase sales

• To supervise staffs of promotion specialists

CUSTOMER SERVICE MANAGER

• To consult the sales force & customers on problems regarding services

• To establish frequency of consumer contact

HEAD MARKETING

• To discharge sales people with unsatisfactory performance levels within company policy
and employment law guidelines
• To Sets standards of work performance and conduct
• To manage the overall performance of staff in the department
• To Analyze, report, give recommendations and develop strategies on how to improve
quality and quantity
• To achieve business and organization goals, visions and objectives
• To involve in employee selection, career development, succession planning and periodic
training
• To work out compensations and rewards
• To be responsible for the growth and increase in the organizations' finances and earnings
• To identify problems, creating choices and providing alternatives courses of actions
 BUDGET

SALARY STRUCTURE
POSITION SALARY No. of people DETAIL TOTAL
Head Marketing 50,000 1 50,000 X 1 50,000
Marketing Research 30,000 1 30,000 X 1 30,000
Manager
Sales Manager 40,000 1 40,000 X 1 40,000
Promotion Manager 30,000 1 30,000 X 1 30,000
Customer Service 30,000 1 30,000 X 1 30,000
Manager
Area Sales Manager 20,000 8 20,000 X 8 1,60,000

Sales Person 10,000 36 10,000 X 36 3,60,000

Marketing Research 12,000 2 12,000 X 2 24,000
Officer
Promotion Officer 12,000 2 12,000 X 2 24,000

TOTAL SALARY (Per Month): 7,48,000

TOTAL SALARY (Per Year): 89,76,000

 COST ALLOCATION

Main Office 25,00,000

Distribution 20,24,000

Salary 89,76,000

Marketing Research department 20,00,000

Customer Service department 5,00,000

Rent 24,00,000

Promotion 1,00,00,000

Total 2,84,00,000

NOTE :

Rent:-

Mega Metropolitan City-

150 sq. ft. X 100 = 15,000(per mall)

15000 X 8= 1,20,000 (8 malls)

Small Metropolitan City-

200 sq. ft. X 50 = 10,000(per mall)

10000 X 8= 80,000 (8 malls)

120000 + 80000= 2,00,000 (per month)

200000 X 12 = 24,00,000 (per year)

COST ANAYSIS & ESTIMATE

 COST PRICE
FORMAL SHIRTS MAN ( Rs. ) WOMAN ( Rs. )
XXL 725 625
XL 750 650
L 775 765
M 800 700
S 850 750

SELLING PRICE
FORMAL SHIRTS MAN ( Rs. ) WOMAN ( Rs. )
XXL 1199 1099
XL 1399 1299
L 1499 1399
M 1599 1499
S 1599 1499

Avg. C.P. for Men’s Formal Shirts: Rs. 780/-

Avg. C.P. for Women’s Formal Shirts: Rs. 680/-

Therefore, Avg. C.P. = Rs. ( 780 + 680 ) / 2 = Rs. 730/-

Avg. S.P. for Men’s Formal Shirts: Rs. 1459/-

Avg. S.P. for Men’s Formal Shirts: Rs. 1359/-

Therefore, Avg. S.P. = Rs. (1459 + 1359 )/ 2 = Rs. 1409/-

NOTE : The above prices have been decided on the basis of Competitive Pricing Method.

SALES FORECASTING
METHODOLOGY: Executive Opinion Poll

SALES ESTIMATE ( Per Month )

MALL 1 (UNITS) MALL 2 (UNITS)

CITY

DELHI 45 45

MUMBAI 45 45

KOLKATTA 45 45

CHENNAI 45 45

BENGALOORU 30 30

HYDRABAD 30 30

PUNE 30 30

JAIPUR 30 30

AHEMDABAD ( Retail Outlet ) 40 ---

Total units of sales projection in all cities: 640 units p.m.

Hence, total no. of units projected for the whole year: 7680 units

BREAK – EVEN ANALYSIS

FORMULA : FIXED COST / ( S.P. – V.C. )

Fixed Cost : Rs. 24,00,000 + Rs. 20,00,000 = Rs. 44,00,000

S.P. ( Per Unit ) = Rs. 1409/-

V.C. ( Per Unit ) = Rs. 730/-

Hence,

We need to find, the number of units to be sold to achieve the break even of the current year’s
investment.

Break Even Point ( units ) = Rs. [44,00,000 / (1409 – 730)]

= 6841 units

Therefore,

To achieve the Break Even Point, we need to sell 6841 unit of formal shirts in the current year.

NOTE: The method of calculation used is the one, in which, to achieve the Break Even Point, we find the
number of units to be sold.

SALES PROMOTION

• DISCOUNTS
 During promotional campaigns, we will offer our products at discounted rates. Consumers like to
make use of such occasions to buy larger quantities of such products. Customers perceive
discounts as rewards and often then buy in larger quantities.

• COUPONS

We can disseminate coupons in many ways. They may direct deliver by mailing, dropping door
to door, or delivering to a central location such as a shopping mall. They may distribute them
through the media—magazines, newspapers, Sunday supplements, or freestanding inserts (FSI)
in newspapers.

• SPECIAL EVENT

Special event can also be designed as it tends to attract the audience, the impact of the sales
promotion will be quite high. Special events are acts of news development.

For example, a concert can be sponsored which will definitely grab people’s attention which will
be large in number or a small campaign can be arranged in order to attract the attention of people
which will help the organisation increase its sales.

• COMBO PACK

Combo pack can also be one of the good option for sales promotion since it is profitable to
customers. For example, a shirt costing 599 if bought 2 will be sold in 999 which a customer will
be interested in buying.

INCENTIVES
• CASH BONUS

Naturally enough, money is the best reward for most salespeople.

• MERCHANDISE

Merchandise rewards can range anywhere from small branded key chains to high-end electronics.

• EXPERIENCE

Experiential rewards provide program participants with an experience. This form of reward gives
organizations the ability to offer their employees and customers interesting experiences as
incentives.

Examples might include a seaplane flight and lunch, a two hour horse ride on the beach, a day of
sailing for two, a chance to meet a star athlete, or the use of a party planner for an occasion of the
recipient’s choice.

Experiential rewards allow participants to share their experiences with others and reinforce the
reward and the behavior that led to the giving of the reward.

• RECOGNITION

Taking the time to recognize a leading performer with a plaque, cake or special lunch doesn't
require much in terms of expense.
COMPENSATION & INCENTIVE
PLAN

If the Sales Team

Achieves 20% more Rs. 10,000 as bonus
Specify Monthly
than the specified to the team.
Target
target.

Only the team A sponsored trip for

members would be the whole team. If the whole team is
taken to the trip & able to achieve it,
not the member of OR continuously for 6
their family as well. months.
Rs. 20,000
At each City an area sales manager has been appointed, and under each area sales manager there
are 4 sales people which make a team of 5 at each city. For the teams in Mega metros if they are
able to achieve a combined target of 90 & its 20 % surplus then they would be awarded a bonus
sum of Rs 10,000/- to the whole team i.e., Rs 2000 to all sales people in the team and Rs 3000 to
the Area sales manager. But if they are able to achieve this target successfully for consecutive 6
months then the whole team would be offered a trip to a place fully sponsored or Rs. 20,000.

SALES PERSON’S TARGETS ( Per Month )

DELHI 23

MUMBAI 23

KOLKATTA 23

CHENNAI 23

BENGALOORU 15

HYDRABAD 15

PUNE 15

JAIPUR 15

AHEMDABAD ( Retail Outlet ) 10

Every sales person also has some individual Bonus Earning Opportunities with them, since, the
sales person with the best performance in 1 month, gets the recognition as the best sales person of
that month and if any of the sales person is able to maintain such a performance on a consistent
basis for 4 months Continuously, such a sales person would get a bonus of Rs. 10,000/-
DISTRIBUTION
 Our production centre is at Ahemdabad i.e., it also has our Retail Outlet situated within the same
city. PLUME follows the direct distribution channel and for transferring the production to its
warehouse centres in each city via, 3 routes:

• Route 1 : For transferring the production to Kolkata.

• Route 2 : For transferring the production to Jaipur & Delhi.

• Route 3 : For transferring the production to bangalooru, Chennai, Hyderabad, Pune & Mumbai.

Why to use the direct distribution instead of any other method ?

Since our line of production does not need any channels in between as the production is going to
be sold in shops like lifestyle & shopper stop, in which a small floor area would taken on rent for
display of our Shirts to the customers. It also is a better method , as it saves the margin cost
which an agent or a whole seller or a retailer or any middleman, would have taken. It would also
help our researchers to collect data for trend analysis & demand from its customers & also about
the taste & preferences that our customers prefer.