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8/28/2017Hazem EL Mahdi 1
Sales Management Agenda
• What is Sales Management ?
• Functions of Sales Manager.
• Relation with other Dept.
• Sales operation /strategy / analysis
• KPI’s
• Sales commission structure
• Sales planning
• Forecasting & Sales Budget
• KA management.
• Category Management Strategies
• Customer Business planning
8/28/2017Hazem EL Mahdi 2
How We Learn
• 10% of what we read
• 20% of what we hear
• 30% of what we see
• 50% of what we both see and hear
• 70% of what is discussed with each other
• 80% of what we experience personally
• 95% of what we teach to someone else
8/28/2017Hazem EL Mahdi 3
-William Glaser
Sales Management Definition
• The process of planning, directing
and controlling of personal selling
.
• Including : recruiting , selecting ,
equipping , assigning , supervision
and motivating the personal sales
force
8/28/2017Hazem EL Mahdi 4
The functions of sales management
8/28/2017Hazem EL Mahdi 5
The functions
of Sales
management
Planning
Organizing
Leading
Controlling
Planning Funnel
Time spent on planning pays off on the long run…
Planning
Execution
‘Arguing’ &
Rethinking
8/28/2017Hazem EL Mahdi 6
TimeSpent………….
OBJETIVES of Sales Management
8/28/2017Hazem EL Mahdi 7
Sales
Manager
Continuing
Growth
Contribution
to Profits
SalesVolume
Making Sales Management
Effective
• Vision
• Market Focus
• Clear Guidance
• A good team / team work
• Spending time with the team
• Motivation
• Good communication
• Sales excellence
• Innovation
• Leadership
8/28/2017Hazem EL Mahdi 8
Functions of Sales Manager.
Administrative
Functions
Sales
planning
Sales
Administration
Policy &
strategies
Sales
Forecasting
Sales
organization
Coordination in
ADV & promotions
Communication
Budget Control
8/28/2017Hazem EL Mahdi 9
Importance of Sales Management
Making Revenue
Achieving organization targets / Goals
Linking between organization and customers
Success sales Dept. moving company from loss to profit
Motivating Sales team to achieving company goals
8/28/2017Hazem EL Mahdi 10
What would
you like to be ?
Manager Or
Leader
8/28/2017Hazem EL Mahdi 11
10 Management tips for Great Larders
8/28/2017Hazem EL Mahdi 12
Share information
Say thanks
Empower through
delegation
Adjust your style
Set small milestones
Have fun
Remove difficulties
Give feedback
Raise your hand
Focus your
time 80 / 20
Relation with other Dept.
8/28/2017Hazem EL Mahdi 13
Sales
Finance
Marketing
Logistic and
supply chain
Production
Success
8/28/2017Hazem EL Mahdi 14
Sales
management
Sales
operations
Sales
strategy
Sales
Analysis
8/28/2017Hazem EL Mahdi 15
Sales operations
8/28/2017Hazem EL Mahdi 16
Sales operations:
✓ Building the team
The sales team is the backbone of the company – Why ?
• They are the direct connection between the product and the customer.
• All in all, the sales team should feel like they are a part of the company and be equipped
to move it forward, rather than viewed as money-making machines.
• You can set your team up for success by giving them high yet realistic targets, which
you’ll be able to track to measure future success
• You must therefore:
➢ Set targets
➢ Assign territories
➢ Establish goals and quotas
Sales strategy
8/28/2017Hazem EL Mahdi 17
Once you have a team and know your targets, you might be wondering: How do
you actually carry out the sales?
Every business has a sales cycle – a series of tasks that helps a company’s product
reach its users – and having a sales pipeline, or sales funnel, will make that easier to
manoeuvre.
A sales pipeline is a visual sequence of activities to achieve with each prospect, from the
initial lead to the closing of the deal.
A pipeline is a salesperson’s right-hand man, as it helps them stay organized and take
control of their work. After all, there are some things you cannot control – results.That’s
where managing activities comes into play. If a salesperson can see their progress, or
their activities, they will be motivated to do more work and achieve more.
“There are some things you cannot control – results.That’s where managing activities
comes into play.”
Sales Analysis
8/28/2017Hazem EL Mahdi 18
Reporting :Reporting is what allows you to understand how your current efforts
affectyour company’s success and gives you insight into what you can do
to increase your efforts, whether it’s hiring more salespeople, or whether the
salespeople should be making more calls or doing more demos.
Report using sales metrics, or quantifiable indicators, that tell you how each aspect of
your sales operations is performing and whether you are achieving your targets.
With the standard sales funnel, you should be able to measure these four metrics:
✓ Number of deals in your funnel
✓ Average size of a deal in your funnel
✓ Close ratio, or average percentage of deals that get won
✓ Sales velocity, or average deal lifetime before it is won
Collecting data will allow you to find your ideal customer quicker, and reach and serve
them faster.
The AIDA Sales Funnel
Awareness
Interest
Decisio
n
Action
MKT
Activities
Irresistible
offer / develop
relation
Payment methods
Sell / money / repeat
8/28/2017Hazem EL Mahdi 19
8/28/2017Hazem EL Mahdi 20
KPI’s( Key performance indicator)
• A key performance indicator (KPI’s) is a business metric
for evaluating factors that are essential to the success of
an organization.
• The purpose of using key performance indicators is to
focus attention on the tasks and processes that
management has determined are most important for
making progress towards declared goals and targets
8/28/2017Hazem EL Mahdi 21
How to design
1. KPI’s should be clearly linked to the strategy ,i.e. the things
that matter the most .
2. KPI’s have to provide the answers to our most important
questions .
3. KPI’s should be primarily designed to empower employees
and provide them with relevant information to learn.
4. Do not create too many KPI ,
5. KPI should change to suit each stage ( depending on your
goals ).
8/28/2017Hazem EL Mahdi 22
CreateDefine operational
objectives monthly ,
quarterly ,6 months ,
yearly
Identify key results
Identify tasks list
Identify methods to
measure the results
Create construction
KPI’s
8/28/2017Hazem EL Mahdi 23
Abbreviations or Slang with similar
meaning
• KCA - Key Competency Area
• KFA - Key FocusArea
• KEA - Key Environmental Area
• KBA - Key Biodiversity Area
• KRA - Key Resource Area
• KPA - Key Performance Area
• KPA - Key Personnel Area
• KTA - KeyTechnical Area
• KMA - Key Market Area
• KLA - Key LearningArea
• IIKRA - Industry Issues Key ResultArea
• KDA - Key Development Area
• KLA - Key LinkageArea
• KPA - Key Practice Area
• KPA - Key ProductionArea
• KRA - Key Research Area
• KPA - Key Practice Area/Key Process Area
• KRM - Key Result Measures
• KSA- Key Storage Area
• KRA - Key ResponsibilityArea
8/28/2017Hazem EL Mahdi 24
KPI’S samples
• salesTarget achievement 90 %
• Collection achievement 80%
• New customers 10
• Company objectives
• Communication and feedback
• Team work concept
• etc.
8/28/2017Hazem EL Mahdi 25
Sales Commission
8/28/2017Hazem EL Mahdi 26
Sales Commission/ Incentive
Low Base + High commission
• Short sales Cycles
• Large Market
• Large product portfolio
• Quick inventory turns
• HighVolume lower profit margins
High Base + Low
Commission
• Long sales Cycles
• Technical sales
• Business Development
• Longer inventory turns
• Price protection
8/28/2017Hazem EL Mahdi 27
Commission Rules
Motivational
Achievable
Easy to Calculate
8/28/2017Hazem EL Mahdi 28
Sales commission / incentive
Sales
Manager
60 % - 40
%
% of total
revenue
SalesTeam
70 % - 30 %
% of total
collection
8/28/2017Hazem EL Mahdi 29
Sales
commission
SalesTarget
G . Profit Or N
.profit or Revenue
Sales commission criteria
Sales Manager
Team achievement
Company objectives
Overall businesses
development
Sales people
Achievements
SalesTarget
achievement
Collection
New
customers
8/28/2017Hazem EL Mahdi 30
Selling:
“Its not a game, it’s a mission”
8/28/2017Hazem EL Mahdi 31
Sales planning
8/28/2017Hazem EL Mahdi 32
7 steps of Sales Planning
Define a
promotional
calendar
Analyze / track
sales records
Project Sales Project results
Conciliate Sales
and Results
Detail the plan
Control ,
Evaluate and
Adjust
8/28/2017Hazem EL Mahdi 33
8/28/2017Hazem EL Mahdi 34
Analysis Set Goals
Develop
plan
Execute
Put plan in
action
Evaluate &
Adjustment
8/28/2017Hazem EL Mahdi 35
Sales planning
Process
1st Analyses
To determine where you are going you first have to see where you have
been.
Some questions to ask yourself are:
• What business are we in?
• Who are our customers?
• Where did most of my sales come from?
• Where do we want my sales to come from?
• What are some external/Internal factors that can impact my sales?
E.g.. Industry trends,Technology, Competition, Business
Environment etc..
8/28/2017Hazem EL Mahdi 36
2nd Set your Goals
• Some samples:
• Achieve 1 Million in New Sales by
December 31st, 2017
• Sell 2 Corporate wide Licenses by
December 31st, 2017
• Grow Distributor Network by 30%
by December 31st, 2017
•
8/28/2017Hazem EL Mahdi 37
3rd Step Develop the Sales Plan
Industry trend
8/28/2017Hazem EL Mahdi 38
This is the meat of your sales plan and is the most critical in helping you achieve
your goals. It should outline all the strategies and tactics that you are going to use
to overcome the difficulties that you may face in meeting your goals.
Sales forecasting /Budget
8/28/2017Hazem EL Mahdi 39
Forecasting
8/28/2017Hazem EL Mahdi 40
Sales forecastingShort-term
For period
up to 3
months
ahead .
Medium-terms
For 1 year
ahead .
Of the most
importance
in the area of
business
budgeting
Long–term
For periods
of 3 years
and
upwards.
Needed
mainly by
financial
accountants
for long-
term
resource
implications
8/28/2017Hazem EL Mahdi 41
Sales forecasting process
8/28/2017Hazem EL Mahdi 42
Setting goals
for forecasting
Gathering data
Analysis of
data
Choosing the
best model of
forecasting
Forecasting
Evaluation of
forecasting
outcomes
Types Of Forecasting
Macro forecasting
Market inTotal
Market Demand
in the Future
Market Demand
Micro Forecasting
Detailed unit sales
forecasts
Product’s market
share
What will happen
to the market
share in the future
8/28/2017Hazem EL Mahdi 43
Major factors considered when forecasting sales
:
Past sales
levels and
trends
General
economic
trends
Economic
trends in
the
company’s
industry
Other
factors
expected to
affect sales
in the
industry
Political
and legal
events
The
proposed
pricing
policy of
the
company
Marketing
plan and
activities
Expected
action of
competitor
s
PLC /New
products
Market
research
8/28/2017Hazem EL Mahdi 44
Sales forecasting MethodsQualitative
• Executive opinion
• Delphi method
• Salesforce composite
• Survey of buyers’ intentions
• Test Marketing
• ======================
• Used when situation is vague & little data
exist:
➢ New products , New technology.
➢ Involves intuition , experience.
➢ E.g., forecasting sales on internet /
communication
Quantitative
• Moving averages
• Exponential smoothing
• Naïve/ Ratio method
• Regression analysis
• Econometric analysis
• =====================
• Used when situation is stable & historical
data exist.
➢ Existing products / current technology.
➢ Involves mathematical techniques.
➢ E.g., forecasting sales of cars / color
televisions / beverages
8/28/2017Hazem EL Mahdi 45
Approaches of forecasting
Forecast relevant external environmental factors
Estimate industry sales or market potential
Calculate company sales potential = market
potential X company share
Decide company sales forecast ( lower than
company sales potential because sales
potential is maximum estimated sales ,without
any limits
8/28/2017Hazem EL Mahdi 46
• 1-Top-down / break-down
Approaches of forecasting
2-Bottom- up / build-up
Sales / Marketing head
combine sales forecast received from regional/ zonal managers into company sales forecast ,which is presented to CEO for discussion and approval
Regional/ zonal
combine sales forecast received from area/
branch managers
Area / branch managers
combine sales forecast received from salespersons
Salespersons
estimate sales expected from their
customers
8/28/2017Hazem EL Mahdi 47
Delphi Method
8/28/2017Hazem EL Mahdi 48
Getting forecasts
separately from
Experts
gathers, evaluates
and Summarizes the
expert opinion as the
basis for a forecast
1- Moving Average
• Using weighted ( 0.4,0.3,0.2and 0.1) = 1
8/28/2017Hazem EL Mahdi 49
• 4 weeks weighted Moving Average
week Sales 4WMA Error
1 0.1 39
2 0.2 44
3 0.3 40
4 0.4 45
5 38 42.7 4.7
6 43 41.1 -1.9 /3
7 39 41.6 2.6
8 40.6
MAD 3.7
F5=0.4x45+0.3X40+0.2X44+0.1X39
F6 = 0.4X38+0.3X45+0.2X40+0.1X44
MDA ( Moving deviation average) = 4.7+1.9+2.6 = 3.7
3
Moving Avg. 3weeks
• 3 weeks weighted Moving Average
• Using weighted 3 F2 = (s1+s2+s3)/3
8/28/2017Hazem EL Mahdi 50
week Sales 3WMA Error
1 2 39
2 3 44 41
3 40 43
4 45 41
5 38
6 43
7 39
8
MAD
Moving Average
• Using weighted 3 and 2 3+2 = 5
8/28/2017Hazem EL Mahdi 51
• 2 weeks weighted Moving Average
week Sales 4WMA Error
1 2 39
2 3 44
3 40 42 2
4 45 41.6 3.4
5 38 43 5
6 43 40.8 2.2 /5
7 39 41 2
8 40.6 0
MAD 2.92
F3=(3 x 44)+(2 x 39) / 5
F4=(3 x 40)+(2 x 44) / 5
MAD ( Main Absolute Deviation) = 2+3.4+5+2.2+2 = 2.9
5
2 -Exponential smoothing
• a = 0.2 1-a=1-0.2=0.8
8/28/2017Hazem EL Mahdi 52
At Ft F1=A1
week Sales forecast Error Error 2
1 39 0
2 44 39 5 25
3 40 40 0 0
4 45 40 5 25
5 38 41 -3 9
6 43 40.4 2.6 6.8
7 39 40.92 -1.92 3.7
8 40.54
MSE 11.57667
Ft+1=0.2(A1)+0.8(F1)
F1=A1
F2=(0.2 x 39)+(0.8 x 39)
F3=(0.2 x 44)+(2 x 39) / 5
Regression analysis
• Identifies a statistical relationship between : sales
( dependent variable ) and one or more influencing factors ,
which are called the independent variables.
• When just one independent variable is considered (e.g.
population growth ), it is called a linear regression and
the results can be shown as a line graph predicting future
value of sales based on changes in the independent
variable.
• When more than on independent variable is considered ,
it is called a multiple regression
8/28/2017Hazem EL Mahdi 53
8/28/2017Hazem EL Mahdi 54
What is sales Budget ?
budget is estimates
Sales volume
Selling
expenses
Administrative
expenses
Purposes of the sales
Budget
planning
coordination
control
8/28/2017Hazem EL Mahdi 55
Sales Budget ProcessReview and analysis of situation
Identifying specific market opportunities and
problems
Sales forecasting
Sales goals & objectives
Allocation of resources / Get Approval
8/28/2017Hazem EL Mahdi 56
The Master Budget
Sales Budget
Production
Budget
Direct
Materials
Budget
Direct Labor
Budget
Cash Budget
8/28/2017Hazem EL Mahdi 57
Budgeted Financial
Statement
Manufacturin
g O/H budget
Selling and
Administrative
Budget
Budget methods
• Affordability
• Percentage of sales
• Competitive parity
• Objectives and tasks
• Return oriented
8/28/2017Hazem EL Mahdi 58
Budget methodsAffordabl
e
• Is a process where the management develops the sale budget depending on its ability to spend on sales
functions.
• Firm develops the budget based on whether it can afford to spend a certain amount for selling goods.
Percentage
ofsales
• Is used for developing by multiplying sales revenue by given percentage.
• The sales revenue used may be a past sales revenue figures or forecasted figure.
Competitive
parity
• sales Managers establish budget amounts base on the budget figures of the competitors or the industry
average.
8/28/2017Hazem EL Mahdi 59
Budget methodsObjectiveand
task • The management develops the budget based on objectives .
• Involves 4 steps
1.Identification of objectives of the sales department.
2. the tasks to be performed for achieving the objectives.
3.The expenditure required for the tasks.
4.Adding all the above expenses to a final figure of budgeting
Returnoriented
method
• The methods like return on investment ( ROI), return on assets ( ROA), return on total
assets (ROTA) return on asset managed ( ROAM) are some tools that help managers
to develop a sales budget.
• It helps the sales managers analysis the impact of a particular sales cost allocation on
revenues and profits generated by sales
8/28/2017Hazem EL Mahdi 60
8/28/2017Hazem EL Mahdi 61
Introduction• This Training focuses on Key Accounts Management as trade is developing customer
operations, sizes and tactics .
• As 20:80 principle applies to Key Accounts, selection process is vital.
• Applying category management principles represent opportunity/ threat; that is who is in
puts barriers for others.
• Key Accounts Development is a result of two factors:
• Evolution – natural respond to consumer needs and expectations, and market
dynamics. However, it is a slow process.
• Revolution – Lead by new ideas/approaches to broaden customer base, and gain
edge over competition. Human factor (Management of change) boosts revolutionary
change, some times within few months evidence.
This training aims to highlight elements of revolution, and the roadmap to speed and
cope with the change.
8/28/2017Hazem EL Mahdi 62
Why KAM?
Key Account Management is a natural respond to the diversified
needs of the retailer & the consumer.
This means that the same number selling unit is expected to
understand the diversification and deliver accordingly.
You can always use a pan to cook flour and eggs to prepare cookies,
but you can not expect to end same with a cake. It is not how we
mix them only, but it is also the environment yeast, oven, mix, and
flavor “training, orientation, work field and scope” that are needed
to get the bake done. 8/28/2017Hazem EL Mahdi 63
Why KAM?
KAM is a function to fulfillThree simple purpose :
1. KAM is a process for attempting to manage the future
KAM is not a short-term sales drive.
2. KAM is a means to competitive advantage
3. KAM is a means, if you can , to key supplier status.
8/28/2017Hazem EL Mahdi 64
Why KAM?Key Account Management
Pen
Paper
Calculator
Facts and Figures
8/28/2017Hazem EL Mahdi 65
Identifying Key Accounts?
Who are the Key Accounts?:
• Are they just the big ones?
• Are they the ones you wouldn’t lose?
• Are they the ones that offer futures profit?
• Are they the ones you want your staff to focus on- to
look after the very best?
• Are they the ones where extra effort will bring extra
returns?
• Are they the ones that demand more from you?
• Are they the ones that will take your business where you
want it to go? 8/28/2017Hazem EL Mahdi 66
Main Accountabilities of KA Managers
1. To achieve volume, distribution targets by preparing, negotiating and executing customer
annual business plan.
2. To recommend key accounts from total customer base based on agreed selection criteria.
3. To plan and control the execution of the trade terms investment.
4. To support field sales force in the strict application of the annual contracts and execution of
trade promotions.
5. Regular monitoring of completion activities.
6. To build and keep sustainable relationship with key accounts to support and influence decision
making of key accounts.
7. To develop individual promotion plan to optimize the performance of the key accounts.
8. Continuous improvement and sharpen negotiation skills to become superior negotiator.
8/28/2017Hazem EL Mahdi 67
Segmenting
Key Accounts?
Opportunistic Accounts
Key Development Accounts
Key
Account
s
Maintenance Accounts
8/28/2017Hazem EL Mahdi 68
Focus by Priority:
8/28/2017Hazem EL Mahdi 69
Key Development
Accounts
Maintenance Accounts
OpportunisticAccounts
KAM Competencies
Vital competencies for the key account manager are four:
1. The ability to form, motivate, and direct a team of people in a ‘team
sell’, while those people probably do not work directly for them (in a
line management sense), are perhaps senior, and are certainly more
expert in their own area.
2. A focus on creating value for the customer. This involves seeing
opportunities, provoking internal resources to meet them, and
presenting powerful propositions.
3. The ability to build long term relationships based on trust. This
involves an ability to assess complex decision making processes, the
ability to network, and the ability to work in a cooperative and
consultative way.
4. The ability to enhance profitability through an understanding of the
supplier’s own business models. 8/28/2017Hazem EL Mahdi 70
Segmenting Key Accounts?
8/28/2017Hazem EL Mahdi 71
100% Attractiveness of Account 0%
1. 2. 3.
4. 5. 6.
7. 8. 9.
High Medium Low
Strong
Moderate
Weak
SupplierPositionwithinAccount
Fill Matrix with right tactic: Invest, Maintain, Withdraw (or delegate)
Required Skills for KAM
• Commercial awareness
• Analyzing
• Planning
• Communication
• Negotiating
• Influencing
• Presentation skills
• Initiative
• People management
• Building and leading teams
• Tact & diplomacy
8/28/2017Hazem EL Mahdi 72
KAM Process
Key Account Management process follows 5
essential steps:
REMEMBER: 90% OF ANY SUCCESSFUL PLAN,
LIES INTHE EXECUTION.
8/28/2017Hazem EL Mahdi 73
Retail Stores Format Grid
8/28/2017Hazem EL Mahdi 74
More Variety
Less Variety
Lower
Margin
Higher
Margin
Category Management Strategies
8/28/2017Hazem EL Mahdi 75
Improved Business Results
Consumer Purchase Behavior
Category Management
Efficient
Replanishment
Efficient
Assortment
Efficient
Promotion
EfficientNew
Products
Key Accounts Manager
So, for all the earlier mentioned objectives, Key Accounts Manager is
viewed by Key Account customers as:
“A Walking Bank”
“ A rich Businessman”
It is no harm, but rather a privilege. It uncovers opportunities.And it
is the right time to capitalize on these views.
8/28/2017Hazem EL Mahdi 76
What is requiring Skills for the Key Account
manager/Rep?
• Commercial awareness
• Analyzing
• Planning
• Communication
• Negotiating
• Influencing
• Presentation skills
• Initiative
• People management
• Building and leading teams
• Tact & diplomacy
8/28/2017Hazem EL Mahdi 77
Buyer’s Guide
1. NEVER RUSH ENTHUSIASTICALLY UPTO A SALEMAN
2. ALWAYS REACT (ADVERSELY )TO A FIRST OFFER
3. ALWAYS ASK FORTHE MOON
4. NEVERACCEPTTHE FIRST OFFER
5. TELLTHEMTHEYWILL “ NEEDTO DO MUCH BETTER
THANTHAT”
6. BE SMART : ACT STUPID
7. NEVER STRIKE A DEALWITHOUT SOMETHING IN
RETURN
8. ALWAYS BE PREPAREDTO BREAK OFF DISCUSSIONS
9. PLAY “ GOOD COP , BAD COP”
10.USE FALSE PRETEXTS 8/28/2017Hazem EL Mahdi 78
TakeA Minute OfYour DayTo Look IntoThe Faces OfThe PeopleYou
Manage
8/28/2017Hazem EL Mahdi 79
Customer Business
Planning
8/28/2017Hazem EL Mahdi 80
Customer Business Plan
Key Learning about Customer Business Plan
• The CBP is our best tool in understanding:
• Customers
• Categories
• Consumers
• Market Place
• The CBP is a “Roadmap” to:
• Grow overall business
• Achieve company’s goals
• Achieve customer’s goals
• A good CBP:
1) Identifies opportunities/issues
2) Defines strategies
3) Provide direction
No plan- No key account 8/28/2017Hazem EL Mahdi 81
Customer Business Planning
Simulation Plan
8/28/2017Hazem EL Mahdi 82
Contents• The Key Account Team
• The Contact Matrix
• History performance Analysis; Sales growth, spending
• Category information; market share, competition %
• Objectives, Strategies, Activities, clear and measurable
• Primary & Secondary spaces required, New listings, merchandizing the category
• Promotion Calendar
• Implementation timetable
• Tracking tools, RBR
• Spending plan, get approval from management, but do not include it in the proposition
8/28/2017Hazem EL Mahdi 83
Key AccountTeam
CoreTeam
• …. KA Manager
• ….
• ….
• ….
SurroundTeam
• ….
• ….
• ….
• ….
• ….
• ….
• ….
8/28/2017Hazem EL Mahdi 84
Contact Matrix
8/28/2017Hazem EL Mahdi 85
Key
Account
Manager
Your team
member
Your team
member
Your team
member
Your team
member
Your team
member
Buying
Director X
Their team
member X X X X
Their team
member X X
Their team
member X X X
Their team
member X
Their team
member X X
Their team
member X X
History Performance Analysis
2017 2018 2019
SalesVolume/Value
YOY growth
Key Points as comment on key drives for LY
8/28/2017Hazem EL Mahdi 86
Category Information Analysis
2017 2018 2019
CategoryAVolume/Val
YOY Growth
Category BVolume/Val
YOY Growth
Category CVolume/Val
YOY Growth
8/28/2017Hazem EL Mahdi 87
Category Information Analysis
2017 2018 2019
Brand X share from A
Competitive Brand from A
BrandY share from B
Competitive Brand from B
Brand Z share from C
Competitive Brand from C
8/28/2017Hazem EL Mahdi 88
Objectives, Strategies, Actions
Objectives Strategies Actions
To achieve SR 2.50M Focus on Cereals - list 5 additional SKU’s
with client ‘X’ (+15% vs. LY) - increase shelf space
in 2003 - agree permanent
secondary visibility
for coated
Improve visibility of - participate in each
Confectionery leaflet
- “BTS” promotion
- Increase shelf space
for Bon O Bon by 20%
8/28/2017Hazem EL Mahdi 89
Share of Space Required
Primary Secondary
(specify)
• Brand X
• BrandY
• Brand Z
NB, Primary better will be if defined in % share
8/28/2017Hazem EL Mahdi 90
Promotion Calendar
• Define promotions per each individual brand
Set promotion calendar, clear, with defined objective and execution time table
• Try to plan separate activity per each KA.This gives intimacy as each is treated
with specialTailor-Made
• Work with smart objectives, aim is to promote consumption, not building
customer inventory
• Make calendar user friendly.The last thing you like to do, is to make your
primarily KA buyer confused
8/28/2017Hazem EL Mahdi 91
ImplementationTimetable
8/28/2017Hazem EL Mahdi 92
Promotion
Date
Promotion/ Activity Order
Date
TrackingTools
 Define a set of tracking reports to show progress and allow
easy evaluation for each activity
 Urge your customer to share his info with yours
 Highlight success. In case of failures, highlight remedies
 Make Regular Business Review (RBR) a regular habit
8/28/2017Hazem EL Mahdi 93
FinancialTerms
1. Promotion Support Budget: LE . . . . . . . .
2. Business Plan Agreement : LE. . . . . . . .
8/28/2017Hazem EL Mahdi 94
Key terms [Sales glossary]
• Activity-based selling –The theory that you can close more deals by focusing on
the activities you can control, such as the number of calls or appointments made,
rather than focusing on results, or making a certain amount of money in sales.
• Close/closing – Bringing a prospect to a final buying decision.
• Close ratio – Number of deals you close compared to the number of deals you
have presented.
• Cold calling – Getting in contact with a potential customer with no prior contact or
relationship in hopes of setting up an appointment of informing them about your
product or service.
• Conversion –The act of turning a prospect into a customer.
• Customer relationship management (CRM) – A tool or software to manage your
customer relationships and sales pipeline.
• Deal – An agreement to meet or take action with a prospect.
Demo – A sales presentation of your product or service.
• Lead – Anyone who could potentially be a customer.
• Marketing –The act of promoting your product or service.
• Metrics – A collection of individual and organizational performance indicators and
ratios calculated from collected data that describe a company’s historical and
ongoing sales processes. 8/28/2017Hazem EL Mahdi 95
Key terms [Sales glossary]• Product – Something made to be sold to a consumer.
• Prospect – A potential customer or person who may be interested in a company’s product or service.
• Quota – A fixed share of something that a person or group is entitled to achieve or contribute to.
• Retention rate –The percentage of customers who stay.
• Revenue – A company’s income or earnings.
• Sales cycle –The series of predictable phases required to sell a product or a service. Sales cycles can vary
greatly among organizations, products and services, and no one sale will be exactly the same.
• Sales force – Division of a business responsible for selling products or services.
• Sales funnel (or pipeline) – A systematic and visual approach to selling a product or service.The sales
pipeline is helpful in showing you exactly where the money is in your sales process.
• Sales management –The process of developing and coordinating a sales team.
• Sales management planning – Process of thinking and organizing activities to achieve a desired goal.
• Sales management process – Steps taken to attain a company’s objectives.
• Sales management strategy – A method to bring about a desired outcome.
• Sales manager – Someone who’s responsible for managing salespeople and overseeing a company’s sales
process.
• Salesperson – Someone who typically works directly with customers to inform them and sell a product
while providing customer service.
• Sales reporting –The documentation of a company’s activities.
• Sales targets – Objectives or goals for a salespeople or company.
• Sales velocity –Time it takes for a new deal to close, from the initial contact.
• Service – An action performed to satisfy a customer’s need or problem.
8/28/2017Hazem EL Mahdi 96
8/28/2017Hazem EL Mahdi 97

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Sales management course

  • 2. Sales Management Agenda • What is Sales Management ? • Functions of Sales Manager. • Relation with other Dept. • Sales operation /strategy / analysis • KPI’s • Sales commission structure • Sales planning • Forecasting & Sales Budget • KA management. • Category Management Strategies • Customer Business planning 8/28/2017Hazem EL Mahdi 2
  • 3. How We Learn • 10% of what we read • 20% of what we hear • 30% of what we see • 50% of what we both see and hear • 70% of what is discussed with each other • 80% of what we experience personally • 95% of what we teach to someone else 8/28/2017Hazem EL Mahdi 3 -William Glaser
  • 4. Sales Management Definition • The process of planning, directing and controlling of personal selling . • Including : recruiting , selecting , equipping , assigning , supervision and motivating the personal sales force 8/28/2017Hazem EL Mahdi 4
  • 5. The functions of sales management 8/28/2017Hazem EL Mahdi 5 The functions of Sales management Planning Organizing Leading Controlling
  • 6. Planning Funnel Time spent on planning pays off on the long run… Planning Execution ‘Arguing’ & Rethinking 8/28/2017Hazem EL Mahdi 6 TimeSpent………….
  • 7. OBJETIVES of Sales Management 8/28/2017Hazem EL Mahdi 7 Sales Manager Continuing Growth Contribution to Profits SalesVolume
  • 8. Making Sales Management Effective • Vision • Market Focus • Clear Guidance • A good team / team work • Spending time with the team • Motivation • Good communication • Sales excellence • Innovation • Leadership 8/28/2017Hazem EL Mahdi 8
  • 9. Functions of Sales Manager. Administrative Functions Sales planning Sales Administration Policy & strategies Sales Forecasting Sales organization Coordination in ADV & promotions Communication Budget Control 8/28/2017Hazem EL Mahdi 9
  • 10. Importance of Sales Management Making Revenue Achieving organization targets / Goals Linking between organization and customers Success sales Dept. moving company from loss to profit Motivating Sales team to achieving company goals 8/28/2017Hazem EL Mahdi 10
  • 11. What would you like to be ? Manager Or Leader 8/28/2017Hazem EL Mahdi 11
  • 12. 10 Management tips for Great Larders 8/28/2017Hazem EL Mahdi 12 Share information Say thanks Empower through delegation Adjust your style Set small milestones Have fun Remove difficulties Give feedback Raise your hand Focus your time 80 / 20
  • 13. Relation with other Dept. 8/28/2017Hazem EL Mahdi 13 Sales Finance Marketing Logistic and supply chain Production
  • 16. Sales operations 8/28/2017Hazem EL Mahdi 16 Sales operations: ✓ Building the team The sales team is the backbone of the company – Why ? • They are the direct connection between the product and the customer. • All in all, the sales team should feel like they are a part of the company and be equipped to move it forward, rather than viewed as money-making machines. • You can set your team up for success by giving them high yet realistic targets, which you’ll be able to track to measure future success • You must therefore: ➢ Set targets ➢ Assign territories ➢ Establish goals and quotas
  • 17. Sales strategy 8/28/2017Hazem EL Mahdi 17 Once you have a team and know your targets, you might be wondering: How do you actually carry out the sales? Every business has a sales cycle – a series of tasks that helps a company’s product reach its users – and having a sales pipeline, or sales funnel, will make that easier to manoeuvre. A sales pipeline is a visual sequence of activities to achieve with each prospect, from the initial lead to the closing of the deal. A pipeline is a salesperson’s right-hand man, as it helps them stay organized and take control of their work. After all, there are some things you cannot control – results.That’s where managing activities comes into play. If a salesperson can see their progress, or their activities, they will be motivated to do more work and achieve more. “There are some things you cannot control – results.That’s where managing activities comes into play.”
  • 18. Sales Analysis 8/28/2017Hazem EL Mahdi 18 Reporting :Reporting is what allows you to understand how your current efforts affectyour company’s success and gives you insight into what you can do to increase your efforts, whether it’s hiring more salespeople, or whether the salespeople should be making more calls or doing more demos. Report using sales metrics, or quantifiable indicators, that tell you how each aspect of your sales operations is performing and whether you are achieving your targets. With the standard sales funnel, you should be able to measure these four metrics: ✓ Number of deals in your funnel ✓ Average size of a deal in your funnel ✓ Close ratio, or average percentage of deals that get won ✓ Sales velocity, or average deal lifetime before it is won Collecting data will allow you to find your ideal customer quicker, and reach and serve them faster.
  • 19. The AIDA Sales Funnel Awareness Interest Decisio n Action MKT Activities Irresistible offer / develop relation Payment methods Sell / money / repeat 8/28/2017Hazem EL Mahdi 19
  • 21. KPI’s( Key performance indicator) • A key performance indicator (KPI’s) is a business metric for evaluating factors that are essential to the success of an organization. • The purpose of using key performance indicators is to focus attention on the tasks and processes that management has determined are most important for making progress towards declared goals and targets 8/28/2017Hazem EL Mahdi 21
  • 22. How to design 1. KPI’s should be clearly linked to the strategy ,i.e. the things that matter the most . 2. KPI’s have to provide the answers to our most important questions . 3. KPI’s should be primarily designed to empower employees and provide them with relevant information to learn. 4. Do not create too many KPI , 5. KPI should change to suit each stage ( depending on your goals ). 8/28/2017Hazem EL Mahdi 22
  • 23. CreateDefine operational objectives monthly , quarterly ,6 months , yearly Identify key results Identify tasks list Identify methods to measure the results Create construction KPI’s 8/28/2017Hazem EL Mahdi 23
  • 24. Abbreviations or Slang with similar meaning • KCA - Key Competency Area • KFA - Key FocusArea • KEA - Key Environmental Area • KBA - Key Biodiversity Area • KRA - Key Resource Area • KPA - Key Performance Area • KPA - Key Personnel Area • KTA - KeyTechnical Area • KMA - Key Market Area • KLA - Key LearningArea • IIKRA - Industry Issues Key ResultArea • KDA - Key Development Area • KLA - Key LinkageArea • KPA - Key Practice Area • KPA - Key ProductionArea • KRA - Key Research Area • KPA - Key Practice Area/Key Process Area • KRM - Key Result Measures • KSA- Key Storage Area • KRA - Key ResponsibilityArea 8/28/2017Hazem EL Mahdi 24
  • 25. KPI’S samples • salesTarget achievement 90 % • Collection achievement 80% • New customers 10 • Company objectives • Communication and feedback • Team work concept • etc. 8/28/2017Hazem EL Mahdi 25
  • 27. Sales Commission/ Incentive Low Base + High commission • Short sales Cycles • Large Market • Large product portfolio • Quick inventory turns • HighVolume lower profit margins High Base + Low Commission • Long sales Cycles • Technical sales • Business Development • Longer inventory turns • Price protection 8/28/2017Hazem EL Mahdi 27
  • 28. Commission Rules Motivational Achievable Easy to Calculate 8/28/2017Hazem EL Mahdi 28
  • 29. Sales commission / incentive Sales Manager 60 % - 40 % % of total revenue SalesTeam 70 % - 30 % % of total collection 8/28/2017Hazem EL Mahdi 29 Sales commission SalesTarget G . Profit Or N .profit or Revenue
  • 30. Sales commission criteria Sales Manager Team achievement Company objectives Overall businesses development Sales people Achievements SalesTarget achievement Collection New customers 8/28/2017Hazem EL Mahdi 30
  • 31. Selling: “Its not a game, it’s a mission” 8/28/2017Hazem EL Mahdi 31
  • 33. 7 steps of Sales Planning Define a promotional calendar Analyze / track sales records Project Sales Project results Conciliate Sales and Results Detail the plan Control , Evaluate and Adjust 8/28/2017Hazem EL Mahdi 33
  • 35. Analysis Set Goals Develop plan Execute Put plan in action Evaluate & Adjustment 8/28/2017Hazem EL Mahdi 35 Sales planning Process
  • 36. 1st Analyses To determine where you are going you first have to see where you have been. Some questions to ask yourself are: • What business are we in? • Who are our customers? • Where did most of my sales come from? • Where do we want my sales to come from? • What are some external/Internal factors that can impact my sales? E.g.. Industry trends,Technology, Competition, Business Environment etc.. 8/28/2017Hazem EL Mahdi 36
  • 37. 2nd Set your Goals • Some samples: • Achieve 1 Million in New Sales by December 31st, 2017 • Sell 2 Corporate wide Licenses by December 31st, 2017 • Grow Distributor Network by 30% by December 31st, 2017 • 8/28/2017Hazem EL Mahdi 37
  • 38. 3rd Step Develop the Sales Plan Industry trend 8/28/2017Hazem EL Mahdi 38 This is the meat of your sales plan and is the most critical in helping you achieve your goals. It should outline all the strategies and tactics that you are going to use to overcome the difficulties that you may face in meeting your goals.
  • 41. Sales forecastingShort-term For period up to 3 months ahead . Medium-terms For 1 year ahead . Of the most importance in the area of business budgeting Long–term For periods of 3 years and upwards. Needed mainly by financial accountants for long- term resource implications 8/28/2017Hazem EL Mahdi 41
  • 42. Sales forecasting process 8/28/2017Hazem EL Mahdi 42 Setting goals for forecasting Gathering data Analysis of data Choosing the best model of forecasting Forecasting Evaluation of forecasting outcomes
  • 43. Types Of Forecasting Macro forecasting Market inTotal Market Demand in the Future Market Demand Micro Forecasting Detailed unit sales forecasts Product’s market share What will happen to the market share in the future 8/28/2017Hazem EL Mahdi 43
  • 44. Major factors considered when forecasting sales : Past sales levels and trends General economic trends Economic trends in the company’s industry Other factors expected to affect sales in the industry Political and legal events The proposed pricing policy of the company Marketing plan and activities Expected action of competitor s PLC /New products Market research 8/28/2017Hazem EL Mahdi 44
  • 45. Sales forecasting MethodsQualitative • Executive opinion • Delphi method • Salesforce composite • Survey of buyers’ intentions • Test Marketing • ====================== • Used when situation is vague & little data exist: ➢ New products , New technology. ➢ Involves intuition , experience. ➢ E.g., forecasting sales on internet / communication Quantitative • Moving averages • Exponential smoothing • Naïve/ Ratio method • Regression analysis • Econometric analysis • ===================== • Used when situation is stable & historical data exist. ➢ Existing products / current technology. ➢ Involves mathematical techniques. ➢ E.g., forecasting sales of cars / color televisions / beverages 8/28/2017Hazem EL Mahdi 45
  • 46. Approaches of forecasting Forecast relevant external environmental factors Estimate industry sales or market potential Calculate company sales potential = market potential X company share Decide company sales forecast ( lower than company sales potential because sales potential is maximum estimated sales ,without any limits 8/28/2017Hazem EL Mahdi 46 • 1-Top-down / break-down
  • 47. Approaches of forecasting 2-Bottom- up / build-up Sales / Marketing head combine sales forecast received from regional/ zonal managers into company sales forecast ,which is presented to CEO for discussion and approval Regional/ zonal combine sales forecast received from area/ branch managers Area / branch managers combine sales forecast received from salespersons Salespersons estimate sales expected from their customers 8/28/2017Hazem EL Mahdi 47
  • 48. Delphi Method 8/28/2017Hazem EL Mahdi 48 Getting forecasts separately from Experts gathers, evaluates and Summarizes the expert opinion as the basis for a forecast
  • 49. 1- Moving Average • Using weighted ( 0.4,0.3,0.2and 0.1) = 1 8/28/2017Hazem EL Mahdi 49 • 4 weeks weighted Moving Average week Sales 4WMA Error 1 0.1 39 2 0.2 44 3 0.3 40 4 0.4 45 5 38 42.7 4.7 6 43 41.1 -1.9 /3 7 39 41.6 2.6 8 40.6 MAD 3.7 F5=0.4x45+0.3X40+0.2X44+0.1X39 F6 = 0.4X38+0.3X45+0.2X40+0.1X44 MDA ( Moving deviation average) = 4.7+1.9+2.6 = 3.7 3
  • 50. Moving Avg. 3weeks • 3 weeks weighted Moving Average • Using weighted 3 F2 = (s1+s2+s3)/3 8/28/2017Hazem EL Mahdi 50 week Sales 3WMA Error 1 2 39 2 3 44 41 3 40 43 4 45 41 5 38 6 43 7 39 8 MAD
  • 51. Moving Average • Using weighted 3 and 2 3+2 = 5 8/28/2017Hazem EL Mahdi 51 • 2 weeks weighted Moving Average week Sales 4WMA Error 1 2 39 2 3 44 3 40 42 2 4 45 41.6 3.4 5 38 43 5 6 43 40.8 2.2 /5 7 39 41 2 8 40.6 0 MAD 2.92 F3=(3 x 44)+(2 x 39) / 5 F4=(3 x 40)+(2 x 44) / 5 MAD ( Main Absolute Deviation) = 2+3.4+5+2.2+2 = 2.9 5
  • 52. 2 -Exponential smoothing • a = 0.2 1-a=1-0.2=0.8 8/28/2017Hazem EL Mahdi 52 At Ft F1=A1 week Sales forecast Error Error 2 1 39 0 2 44 39 5 25 3 40 40 0 0 4 45 40 5 25 5 38 41 -3 9 6 43 40.4 2.6 6.8 7 39 40.92 -1.92 3.7 8 40.54 MSE 11.57667 Ft+1=0.2(A1)+0.8(F1) F1=A1 F2=(0.2 x 39)+(0.8 x 39) F3=(0.2 x 44)+(2 x 39) / 5
  • 53. Regression analysis • Identifies a statistical relationship between : sales ( dependent variable ) and one or more influencing factors , which are called the independent variables. • When just one independent variable is considered (e.g. population growth ), it is called a linear regression and the results can be shown as a line graph predicting future value of sales based on changes in the independent variable. • When more than on independent variable is considered , it is called a multiple regression 8/28/2017Hazem EL Mahdi 53
  • 55. What is sales Budget ? budget is estimates Sales volume Selling expenses Administrative expenses Purposes of the sales Budget planning coordination control 8/28/2017Hazem EL Mahdi 55
  • 56. Sales Budget ProcessReview and analysis of situation Identifying specific market opportunities and problems Sales forecasting Sales goals & objectives Allocation of resources / Get Approval 8/28/2017Hazem EL Mahdi 56
  • 57. The Master Budget Sales Budget Production Budget Direct Materials Budget Direct Labor Budget Cash Budget 8/28/2017Hazem EL Mahdi 57 Budgeted Financial Statement Manufacturin g O/H budget Selling and Administrative Budget
  • 58. Budget methods • Affordability • Percentage of sales • Competitive parity • Objectives and tasks • Return oriented 8/28/2017Hazem EL Mahdi 58
  • 59. Budget methodsAffordabl e • Is a process where the management develops the sale budget depending on its ability to spend on sales functions. • Firm develops the budget based on whether it can afford to spend a certain amount for selling goods. Percentage ofsales • Is used for developing by multiplying sales revenue by given percentage. • The sales revenue used may be a past sales revenue figures or forecasted figure. Competitive parity • sales Managers establish budget amounts base on the budget figures of the competitors or the industry average. 8/28/2017Hazem EL Mahdi 59
  • 60. Budget methodsObjectiveand task • The management develops the budget based on objectives . • Involves 4 steps 1.Identification of objectives of the sales department. 2. the tasks to be performed for achieving the objectives. 3.The expenditure required for the tasks. 4.Adding all the above expenses to a final figure of budgeting Returnoriented method • The methods like return on investment ( ROI), return on assets ( ROA), return on total assets (ROTA) return on asset managed ( ROAM) are some tools that help managers to develop a sales budget. • It helps the sales managers analysis the impact of a particular sales cost allocation on revenues and profits generated by sales 8/28/2017Hazem EL Mahdi 60
  • 62. Introduction• This Training focuses on Key Accounts Management as trade is developing customer operations, sizes and tactics . • As 20:80 principle applies to Key Accounts, selection process is vital. • Applying category management principles represent opportunity/ threat; that is who is in puts barriers for others. • Key Accounts Development is a result of two factors: • Evolution – natural respond to consumer needs and expectations, and market dynamics. However, it is a slow process. • Revolution – Lead by new ideas/approaches to broaden customer base, and gain edge over competition. Human factor (Management of change) boosts revolutionary change, some times within few months evidence. This training aims to highlight elements of revolution, and the roadmap to speed and cope with the change. 8/28/2017Hazem EL Mahdi 62
  • 63. Why KAM? Key Account Management is a natural respond to the diversified needs of the retailer & the consumer. This means that the same number selling unit is expected to understand the diversification and deliver accordingly. You can always use a pan to cook flour and eggs to prepare cookies, but you can not expect to end same with a cake. It is not how we mix them only, but it is also the environment yeast, oven, mix, and flavor “training, orientation, work field and scope” that are needed to get the bake done. 8/28/2017Hazem EL Mahdi 63
  • 64. Why KAM? KAM is a function to fulfillThree simple purpose : 1. KAM is a process for attempting to manage the future KAM is not a short-term sales drive. 2. KAM is a means to competitive advantage 3. KAM is a means, if you can , to key supplier status. 8/28/2017Hazem EL Mahdi 64
  • 65. Why KAM?Key Account Management Pen Paper Calculator Facts and Figures 8/28/2017Hazem EL Mahdi 65
  • 66. Identifying Key Accounts? Who are the Key Accounts?: • Are they just the big ones? • Are they the ones you wouldn’t lose? • Are they the ones that offer futures profit? • Are they the ones you want your staff to focus on- to look after the very best? • Are they the ones where extra effort will bring extra returns? • Are they the ones that demand more from you? • Are they the ones that will take your business where you want it to go? 8/28/2017Hazem EL Mahdi 66
  • 67. Main Accountabilities of KA Managers 1. To achieve volume, distribution targets by preparing, negotiating and executing customer annual business plan. 2. To recommend key accounts from total customer base based on agreed selection criteria. 3. To plan and control the execution of the trade terms investment. 4. To support field sales force in the strict application of the annual contracts and execution of trade promotions. 5. Regular monitoring of completion activities. 6. To build and keep sustainable relationship with key accounts to support and influence decision making of key accounts. 7. To develop individual promotion plan to optimize the performance of the key accounts. 8. Continuous improvement and sharpen negotiation skills to become superior negotiator. 8/28/2017Hazem EL Mahdi 67
  • 68. Segmenting Key Accounts? Opportunistic Accounts Key Development Accounts Key Account s Maintenance Accounts 8/28/2017Hazem EL Mahdi 68
  • 69. Focus by Priority: 8/28/2017Hazem EL Mahdi 69 Key Development Accounts Maintenance Accounts OpportunisticAccounts
  • 70. KAM Competencies Vital competencies for the key account manager are four: 1. The ability to form, motivate, and direct a team of people in a ‘team sell’, while those people probably do not work directly for them (in a line management sense), are perhaps senior, and are certainly more expert in their own area. 2. A focus on creating value for the customer. This involves seeing opportunities, provoking internal resources to meet them, and presenting powerful propositions. 3. The ability to build long term relationships based on trust. This involves an ability to assess complex decision making processes, the ability to network, and the ability to work in a cooperative and consultative way. 4. The ability to enhance profitability through an understanding of the supplier’s own business models. 8/28/2017Hazem EL Mahdi 70
  • 71. Segmenting Key Accounts? 8/28/2017Hazem EL Mahdi 71 100% Attractiveness of Account 0% 1. 2. 3. 4. 5. 6. 7. 8. 9. High Medium Low Strong Moderate Weak SupplierPositionwithinAccount Fill Matrix with right tactic: Invest, Maintain, Withdraw (or delegate)
  • 72. Required Skills for KAM • Commercial awareness • Analyzing • Planning • Communication • Negotiating • Influencing • Presentation skills • Initiative • People management • Building and leading teams • Tact & diplomacy 8/28/2017Hazem EL Mahdi 72
  • 73. KAM Process Key Account Management process follows 5 essential steps: REMEMBER: 90% OF ANY SUCCESSFUL PLAN, LIES INTHE EXECUTION. 8/28/2017Hazem EL Mahdi 73
  • 74. Retail Stores Format Grid 8/28/2017Hazem EL Mahdi 74 More Variety Less Variety Lower Margin Higher Margin
  • 75. Category Management Strategies 8/28/2017Hazem EL Mahdi 75 Improved Business Results Consumer Purchase Behavior Category Management Efficient Replanishment Efficient Assortment Efficient Promotion EfficientNew Products
  • 76. Key Accounts Manager So, for all the earlier mentioned objectives, Key Accounts Manager is viewed by Key Account customers as: “A Walking Bank” “ A rich Businessman” It is no harm, but rather a privilege. It uncovers opportunities.And it is the right time to capitalize on these views. 8/28/2017Hazem EL Mahdi 76
  • 77. What is requiring Skills for the Key Account manager/Rep? • Commercial awareness • Analyzing • Planning • Communication • Negotiating • Influencing • Presentation skills • Initiative • People management • Building and leading teams • Tact & diplomacy 8/28/2017Hazem EL Mahdi 77
  • 78. Buyer’s Guide 1. NEVER RUSH ENTHUSIASTICALLY UPTO A SALEMAN 2. ALWAYS REACT (ADVERSELY )TO A FIRST OFFER 3. ALWAYS ASK FORTHE MOON 4. NEVERACCEPTTHE FIRST OFFER 5. TELLTHEMTHEYWILL “ NEEDTO DO MUCH BETTER THANTHAT” 6. BE SMART : ACT STUPID 7. NEVER STRIKE A DEALWITHOUT SOMETHING IN RETURN 8. ALWAYS BE PREPAREDTO BREAK OFF DISCUSSIONS 9. PLAY “ GOOD COP , BAD COP” 10.USE FALSE PRETEXTS 8/28/2017Hazem EL Mahdi 78
  • 79. TakeA Minute OfYour DayTo Look IntoThe Faces OfThe PeopleYou Manage 8/28/2017Hazem EL Mahdi 79
  • 81. Customer Business Plan Key Learning about Customer Business Plan • The CBP is our best tool in understanding: • Customers • Categories • Consumers • Market Place • The CBP is a “Roadmap” to: • Grow overall business • Achieve company’s goals • Achieve customer’s goals • A good CBP: 1) Identifies opportunities/issues 2) Defines strategies 3) Provide direction No plan- No key account 8/28/2017Hazem EL Mahdi 81
  • 82. Customer Business Planning Simulation Plan 8/28/2017Hazem EL Mahdi 82
  • 83. Contents• The Key Account Team • The Contact Matrix • History performance Analysis; Sales growth, spending • Category information; market share, competition % • Objectives, Strategies, Activities, clear and measurable • Primary & Secondary spaces required, New listings, merchandizing the category • Promotion Calendar • Implementation timetable • Tracking tools, RBR • Spending plan, get approval from management, but do not include it in the proposition 8/28/2017Hazem EL Mahdi 83
  • 84. Key AccountTeam CoreTeam • …. KA Manager • …. • …. • …. SurroundTeam • …. • …. • …. • …. • …. • …. • …. 8/28/2017Hazem EL Mahdi 84
  • 85. Contact Matrix 8/28/2017Hazem EL Mahdi 85 Key Account Manager Your team member Your team member Your team member Your team member Your team member Buying Director X Their team member X X X X Their team member X X Their team member X X X Their team member X Their team member X X Their team member X X
  • 86. History Performance Analysis 2017 2018 2019 SalesVolume/Value YOY growth Key Points as comment on key drives for LY 8/28/2017Hazem EL Mahdi 86
  • 87. Category Information Analysis 2017 2018 2019 CategoryAVolume/Val YOY Growth Category BVolume/Val YOY Growth Category CVolume/Val YOY Growth 8/28/2017Hazem EL Mahdi 87
  • 88. Category Information Analysis 2017 2018 2019 Brand X share from A Competitive Brand from A BrandY share from B Competitive Brand from B Brand Z share from C Competitive Brand from C 8/28/2017Hazem EL Mahdi 88
  • 89. Objectives, Strategies, Actions Objectives Strategies Actions To achieve SR 2.50M Focus on Cereals - list 5 additional SKU’s with client ‘X’ (+15% vs. LY) - increase shelf space in 2003 - agree permanent secondary visibility for coated Improve visibility of - participate in each Confectionery leaflet - “BTS” promotion - Increase shelf space for Bon O Bon by 20% 8/28/2017Hazem EL Mahdi 89
  • 90. Share of Space Required Primary Secondary (specify) • Brand X • BrandY • Brand Z NB, Primary better will be if defined in % share 8/28/2017Hazem EL Mahdi 90
  • 91. Promotion Calendar • Define promotions per each individual brand Set promotion calendar, clear, with defined objective and execution time table • Try to plan separate activity per each KA.This gives intimacy as each is treated with specialTailor-Made • Work with smart objectives, aim is to promote consumption, not building customer inventory • Make calendar user friendly.The last thing you like to do, is to make your primarily KA buyer confused 8/28/2017Hazem EL Mahdi 91
  • 92. ImplementationTimetable 8/28/2017Hazem EL Mahdi 92 Promotion Date Promotion/ Activity Order Date
  • 93. TrackingTools  Define a set of tracking reports to show progress and allow easy evaluation for each activity  Urge your customer to share his info with yours  Highlight success. In case of failures, highlight remedies  Make Regular Business Review (RBR) a regular habit 8/28/2017Hazem EL Mahdi 93
  • 94. FinancialTerms 1. Promotion Support Budget: LE . . . . . . . . 2. Business Plan Agreement : LE. . . . . . . . 8/28/2017Hazem EL Mahdi 94
  • 95. Key terms [Sales glossary] • Activity-based selling –The theory that you can close more deals by focusing on the activities you can control, such as the number of calls or appointments made, rather than focusing on results, or making a certain amount of money in sales. • Close/closing – Bringing a prospect to a final buying decision. • Close ratio – Number of deals you close compared to the number of deals you have presented. • Cold calling – Getting in contact with a potential customer with no prior contact or relationship in hopes of setting up an appointment of informing them about your product or service. • Conversion –The act of turning a prospect into a customer. • Customer relationship management (CRM) – A tool or software to manage your customer relationships and sales pipeline. • Deal – An agreement to meet or take action with a prospect. Demo – A sales presentation of your product or service. • Lead – Anyone who could potentially be a customer. • Marketing –The act of promoting your product or service. • Metrics – A collection of individual and organizational performance indicators and ratios calculated from collected data that describe a company’s historical and ongoing sales processes. 8/28/2017Hazem EL Mahdi 95
  • 96. Key terms [Sales glossary]• Product – Something made to be sold to a consumer. • Prospect – A potential customer or person who may be interested in a company’s product or service. • Quota – A fixed share of something that a person or group is entitled to achieve or contribute to. • Retention rate –The percentage of customers who stay. • Revenue – A company’s income or earnings. • Sales cycle –The series of predictable phases required to sell a product or a service. Sales cycles can vary greatly among organizations, products and services, and no one sale will be exactly the same. • Sales force – Division of a business responsible for selling products or services. • Sales funnel (or pipeline) – A systematic and visual approach to selling a product or service.The sales pipeline is helpful in showing you exactly where the money is in your sales process. • Sales management –The process of developing and coordinating a sales team. • Sales management planning – Process of thinking and organizing activities to achieve a desired goal. • Sales management process – Steps taken to attain a company’s objectives. • Sales management strategy – A method to bring about a desired outcome. • Sales manager – Someone who’s responsible for managing salespeople and overseeing a company’s sales process. • Salesperson – Someone who typically works directly with customers to inform them and sell a product while providing customer service. • Sales reporting –The documentation of a company’s activities. • Sales targets – Objectives or goals for a salespeople or company. • Sales velocity –Time it takes for a new deal to close, from the initial contact. • Service – An action performed to satisfy a customer’s need or problem. 8/28/2017Hazem EL Mahdi 96