A.G.

Refrigerators Ltd
Case and Problem Statements

Companys sales forecast for the year 2006-07 is

8,80,000 units of refrigerators.
Information required for the sales budget:
Market segments
Product type
Sizes
Question 1: What do you suggest to improve
the accuracy of the sales forecast and to get the
break-up of the sales forecast into product types
and sizes, and market segments
Question 2: Should the companys sales
budget be lower, higher, or equal to the sales
forecast and why?
Suggestions to Improve Accuracy

It is advisable to not to depend on one method, but to

go for a combination of qualitative and quantitative
methods.
Quantitative: As per the GM (Sales), the moving
average method was good for short term forecasting.
However, the demand of refrigerators is highly
influenced by the seasons (peak in summer season).
Thus, it would be advisable to choose exponential
smoothening with an adjustment for seasonality. This
will improve accuracy without increasing costs.
Qualitative: By following a bottom-up approach, we can
utilize the experience of the existing salesforce to
arrive at fairly accurate forecast using the salesforce
composite method
Sales budget vs Forecast, which should
be higher?
Sales budget is the estimate of expected sales
volume in units or revenues from the companys
products and services and the selling expenses.
It goes into complete details of expected sales of
each product item.
A sales forecast is estimated units or rupees
sales for a specific future time period based on
an assumed marketing environment and a
proposed marketing plan
Sales budgets are generally set slightly lower
than the sales forecast, in order to avoid
excessive risk.
 R K Consultants:
Selling Consultancy
Services
 The Selling Process

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

Trail close /
Follow-up & Overcoming
Closing the
Service Objections
sale
Pre-call planning

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

Meeting the managers of 2-M and their German

counterparts to understand their needs
Research on market potential in Metros and major cities
Research on the Competitors
Addressing the queries regarding getting dealers in
India
Presentation Method: Consultative
Selling
Need Analysis:
Build a rapport
Understand the needs and benefits expected
Introduction:
A complete and brief introduction about what is RK consultancy is
and what all services they provide etc.
Convincing:
Mention about their success stories (use of testimonials)
Show preparedness with the data collected and analysed
Discuss various options and suggest the best option available
Competitive Edge:
Show point of differentiation from the competitors
Well Prepared:
Anticipate possible queries and be prepared with relevant answers
Negotiation and Closing

Use Minor Points close approach by discussing:

Scope of the project
Required deliverables
Tentative timeline
Choice from available options
Terms of project
Pricing alternatives

Style of negotiation: Win-win

Should be used to come on consensus in case of
disagreement about various factors like price, delivery
schedule, scope of project, etc.