Sales Control - Srinivas Pai

8/10/2019 Sales Control - Srinivas Pai

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Good Morning

Drona Team Members.


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Sales Planning

&Control Process.


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SPCP is a structured and standardized system for:

1. CVBU Channel Partnersto help them achieve:

Increased internal efficiencies of the people and its

system

Lower and Active inventory levels

Higher productivity of working capital

Higher retail and market share

The Objective


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SPCP is a structured and standardized system for

CVBU Sales Officersto help them

Have a window to the retail market being catered by

dealerships, enabling them

To objectively intervene at dealerships as per the need

only and thereby allowing them the flexibility of utilizing

their valuable time and resources, more productively for

Market-expansion and Competition Customer-

Conversion.

The Objective


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Do timely retail predictions, enabling them

Timely revision of action plans with respect to the

target

Better planning of billing to dealers thereby avoiding

specific model shortages and optimizing Dealer

Working Capital .

The Objective


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Do better planning for RSO intakes, enabling

Low and active RSO stocks

Reduced model shortages and RSO to RSO

movements.

The Objective


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In short, SPCP is

A way of working for our Dealerships

And a tool for Tata Motors Sales officers to

monitor, review, control and improve the

performance of Dealerships and logistics.

The Objective


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Area off-take

target

Dealer wise off-

take target

Dealer wise retailtarget setting Confidence?

Key Action Plan

for bridging Gap

Daily/Weekly

Control

Dealer stock:2weeks

Sufficiency

Productivity

Efficiency

VMS

Booklets

IT Package

Market share

TargetCurrent month

forecast

Process Frame :

Pipeline as on 1st day of

Retail month

Gap

Potential of dealer

territory

Target Setting

Retail Process


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Retail Process.

The SPCP incorporates the DMAIC model as elaborated

below:

Step 1: Define/Create pipeline

Step 2: Measure pipeline (Control measures)

Step3: Analyze pipeline(Designing pipeline with respect to target)

Step4: Improve pipeline(Key action plan for all four stages with

respect to target)

Step5: Control pipeline( Monitor and review through prediction &

potential)


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C0/C3 in pipeline : Are those C0s or C3s from the

bucket, who have been contacted.

C1 : A customer who has taken pro forma

invoice/quotation

The Retail ProcessDefine / Create Pipeline

Pipeline & Customer Data

Base

C0 C0 C0 C0 C0 C0

C0 C0 C0 C0 C0 C0

C0 C0 C0 C0 C0 C0

C3 C3

C3C3

C3C3 C3

C3

C0/C3 CO/C3 C1 C1 C1 C1 C2 C2 C2 C3 C3

CO/C3 CO/C3 C1 C1 C1 C1 C2 C2 C2 C3 C3CDB

Bucket


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C2 : A customer who has decided on a model and has

given some financial commitment such as token

advance or L.O.I. from financier.

C3 in pipeline : A customer who has taken delivery of our

vehicle in the current retail month.

The Retail ProcessDefine / Create

PipelinePipeline & Customer DataBase

So, total CDB = C0s in bucket + C3 inbucket+C0/C3 in pipeline+C1+ C2+ C3s in

pipeline


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Market Coverage Plan Sample F006FOO6 has been designed to help a sales person in planning his visits,Keeping track of

customer movement through different stages apart from providing ready reference oa a

customer in terms of his telephone nos., starting category, model he is interested in andthe location he is based at.


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Example; For Pipeline Status on DealerRetail Closing Date (DRCD)

A process aims at establishing the rule of measurement to do

away with gut feeling in deriving a solution.Since Skill, Time

and Loss of conversion between any two consecutive

customer stages are vital parameters, we need to eliminate

any subjectivity and ambiguity in their evaluation and

therefore the following Control Measureshave been

designed.Target-30

The Retail ProcessMeasure Pipeline

C0/C3

100

C1

67

C2

3

C3

30


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Measurement of Skill of

conversion : Four Control

Measures



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Direct Control Measures: These are derived ones and

are used for retail prediction.


C0/C3

100

C1

67

C2

3

C3

30

90.9%33

%

50%

C1 to C3 Conversion factor : C3 / (C1+C2+C3) =30/100

=30%

Or (CF C0-C1) X (CF C1-C2) X (CF C2-

C3)

C0 to C3 Conversion factor: C3 / [C3+C2+C1+(C0/C3)] =

15%

Or (CF C1-C2) X (CF C2-

C3)

15%

30

%

Th R il P


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Step 3 : Analyze / Design Pipeline:After measuring, one

needs to know the required number of customers in different

stages of pipe line, in order to achieve the retail target.The

figure below indicates the flow path of the customers through 4

stages :

The Retail ProcessAnalyse / Design Pipeline

Here, we define :C1*- as the minimum no of C1s required to meet the current months

retail target & C0*/C3* as the minimum no of C0s & C3s required to be contacted for

achieving C1*

C0 C0 C0 C0 C3

C0 C0 C0 C0 C3C0 C0 C0 C0 C3

C3 C3

C3C3 C3C3 C3

C3 C3

C3C3

C3

C3C3

C2C1 C3

(Target

)

C3

C3

C3 CDB Bucket

(C0/C3)

Th R il P


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For a retail target of 50,the following

example illustrates the calculation of

Designed control elements. Let us

take the previous pipeline with its

conversion factors



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C3

0

C2

3

C1

67

C0/C3

53

30%

50%

91% 3 x 0.91 +(C1*) x 0.3 = 50

C1* =158,

The gap =C1*-C1= 158-67= 91

Target = 50

C0*/C3*

=182

0.5

SO, 182- 53 =129 NEW CUSTOMERS (I.e. thecustomers who are not in the pipeline) &

a total of 252 CUSTOMERS (129+53+67+3) need

to be covered during this month.



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*It can be taken from VMS or pink booklets and can be calculated as:

Total Visits by the dealership

Total customer coverage by the dealership

Calculation of Visit/Day requirement:Total CUSTOMER COVERAGE

required by dealership=252 Visits/customer required in a month = 4 (From

past months figures*) So, Total visits required = 252 X 4 = 1008 For 25

working days in a month, Visits/Day required by Dealership= 1008 / 25 =

41. There are 5 sales executives in the Dealership, Avg Visits/day/SE = 41

/ 5 = 9.


Imp.Note:Coverage of all 129 new customers shall be completed in the

first 10/12 working days from DRCD. This is because of the Time of

Conversionrequired for converting customers from C0 to C1 to C2 to C3.


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Step 4: Improve Pipeline

After completing Design stage, we have two informations:

i.Pipe-line status as on 1st day after DRCD(I.e. after filtering)

ii.Designed Pipe-line(Refer DPS-01)

Now the next logical step for DAM is to address the gap between two

pipelines through relevant Sales & Marketing activities using Key Action

Plan Format KAP01. This exercise shall preferably be done along with

Dealer Sales In-charge.

The Retail ProcessImprove Pipeline

Th R t il P


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A B C D E F

3 Tele-marketing 5 27 Mr.P 15.12.01

To focus on FMCG distributers.

segment.60 Tele-calls per day. 3

(C0/C3) to be generated per day

5.12.01

(5th day after DRCD)

By When Strategy

(Monitorable Parameters)

Follow up with concerned financiers for

faster release of DO

4 2 30 Mr.ZDemo of FES 407

5.12.01

(5th day after

DRCD)

Key Action Plan (KAP01) Target :50

C2 =3 3 3 Mr.X

Sl.No What To Do

5

1

By WhomExpected Retail

(C3)Current month

Location x & y.with 25 nos. of

customer coverage at each location.

2 C1=6719

22Mr. Y

55

DAM( Sign.) DSM(Sign.)

7



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1.The format here is essentially a Kaizen format, where each column has a

discrete purpose such as:

What to do(Column B) -List of Sales & marketing activities corresponding to

prompts in DPS01 as well as till the cumulative expected

retail reaches 10% more than the target.

Exp. Retail(Column C) -This is essentially to focus that each activity is a cost to

Dealership or Tata Engg. Or both.One must therefore, try to

assess the effectiveness of the activity

By Whom(Column D) -The person who will ensure the execution on time.Two

names shall be discouraged.

By When(Column E) -Essentially to make sure that all activities,primarily related

to:C0 to C1 : Shall be completed by 10th/ 12thday from DRCD

C1 to C2 : Shall be completed by 18thday from DRCD

C2 to C3 : Shall be completed by 22nd day from DRCD


Th R t il P


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C0/C3 to C1(Prospect knowledge & selection of Prospect skills)

a) Availability of exhaustive Customer Data Base

b) Selection of Quality C0sfor the pipeline.

The following would help:

Customer segmentation across territory. Knowledge of customer buying behavior. Knowledge of environment, e.g. Upcoming industry,opinionleaders,freight rates etc..

c) Quality of C0 coverage through a well designed market

Coverage plan.

d) Meeting customers, understanding their application needs&

suggesting viable product type.

e) Ensuring re-buys & spread good word of mouth through customer

retention skills, such as : During and after sales

Care, concern & importance to the customer Performance follow-up of the product

The Retail ProcessImprove PipelineTips for conversion factor improvement:

h R l P


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C1 to C2 (Product knowledge & selling skills)

a) Availability of Sales kit and driving experience of vehicles.

b) Qualifying C1s in terms of C1A & C1B(A: buy in this month,B:

buy in next month)

c) Pitching right product.

d) Technical clarifications in terms of

Identified customersapplication needs

5 good points of our product & 5 negative points of

comparable competitor product.

e) Discussing comparative economics: operating & life cycle

f) Offering financing options.

g)Selling value added services,e.g.AMC.


The Retail Process


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C2 to C3(Deal closing skills)

a) Negotiating release of delivery note with financiers

b) Managing DWC and vehicle inventory.Following marketing activities can be included in KAP-01

Mailers

Telemarketing-

Paper Advertisement

Road Show

Referral coupons

Free Service

Campaign

Tie up with mechanics

Segment wise market

coverage

Local media

advertisements

Stickers on serviced

vehicles.

Tie up with spare parts distributors.

Vehicle Demo.

Loan Mela.

Exchange Mela

Testimonials from satisfied customers.

Tie up with body builders

Various financial schemes:

Between dealers & financiers

Between TML Dealers &financiersCustomer meet.

Financier Meet.


The Retail Process


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Step 5: Control Pipeline

After having planned KAP01, the aggregated results of its

execution in terms of retail, need to be reviewed weekly in order

to make necessary corrections, if required, in KAP01.

This is done by checking the potential of the retail pipe line and

predicting the retail.

Prediction = Potential with TOC (Time of Conversion),as we

work on monthly basis.

The Retail ProcessControl Pipeline

Th R t il P


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Also Since conversion factors are function of time, fixed Dealer Retail

Closing Date is prerequisite for accurate prediction.

Two Control Measures:

a) C1*-C1= 0 by about 14thday after DRCD

b) C2 X (CF,C2 to C3)+C3= Target by 25thday after DRCD

Imp Note: These give us two additional monitoring points

during the retail month.

The Retail Process


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Prediction acts as a feedback signal allowing us to modulate

inputs as per the requirement well in time.In other words,it

makes the system closedloopas shown below:


Out Put

(Retail)

Pipe Flow

KAP01 Execution

DPS-01 Follow-up

VMS Follow-up

In PutsSystem

Prediction

Feedback

1. CC/Tgt

2. Loss%

3. C0-C1, CF

4. (C1*-C1) Gap

5. C1-C2, CF

6. C2 X (CF, C2-

C3)+C3=Tgt

7. C2-C3,CF

Key

A

c

t

I

on

Pla

n


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1. Retail Prediction: Using conversion ratios, monthly retail can be

predicted on any given day as explained.2. Managing stocks & logistics:

3. Tool for performance comparison using control measures

Dealership CEO can compare the performance of different

branches (or Dealer Sales Managers) under him for corrective

intervention.

Dealer sales Manager can do the same for the sales executives

under him.

Area Managers can do the same to his TSMs.

Regional Manager can do the same to his AMs.

Important Applications:


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SHQ RM AM/RSM TSMDealer Sales

Manager

Dealer Sales

Executive

Presently through E-mail/Fax

Finally through CRM packageBooklets

Pink

Booklet

Blue

Booklet

Yellow

Booklet

Information flow and monitoring Tools:

1. Booklets: Booklets are designed for planning market coverage, monitoring customer progress in

different stages(pipe flow),recording results of sales activities conducted & performance review

through control measures.

These booklets have been standardized for uniformity in use(refer annexure)

Pink : For Sales Executive

Blue : For Dealer Sales In-charge

Yellow: For TSM

VMS


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Thank You

Sales Control - Srinivas Pai

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