Analysis of Sales Management Department

PRESENTED BY:

PRESENTED TO: Sir. Ghulam Ahmad Rana

Group Members

Wajid Ali 3335

Haifa Saleem 3336

Nabita Ishtiaq 3353

Shakeel Aslam 3338

Rana Tassaduq 3316

Hassan Naseer 3328

Introduction

Pioneer manufacturer of electrical goods in Pakistan.

One of the oldest and amongst the leading Home Appliances Manufacturer and Distributor in Pakistan.

The company has an annual turn over of Rs 30.3 billion.

It was established in 1956 in technical collaboration with M/s AEG of Germany.

In October 1978, the company was taken over by Saigol Group of Companies.

Since its inception, the company has always been contributing towards the advancement and development of the engineering sector in Pakistan.

VISION

“To excel in providing engineering goods and services through continuous improvement.”

MISSION

To Provide quality products & services to the complete satisfaction of our customers and maximize returns for all stakeholders through optimal use of resources

To focus on personal development of our Human Resource to meet future challenges

To promote good governance, corporate values and a safe working environment with a strong sense of social responsibility

COMPANY OPERATIONS

Company’s operations are divided into two divisions:

1) Power Division 2) Appliances Division

PEL Product Line

There are five main categories of products.

1) Refrigerator

2) Air Conditioner

3) Deep Freezers

4) Split

5) Washing Machines

POWER TRANSFORMER

DRY TYPE TRANSFORMER

SWITCHGEAR

PMT TRANSFORMER

DISTRIBUTION TRANSFORMER

PEL Product Line

PEL Company Structure

PEL is mainly consisted of seven departments and these departments play an important role in the success of the company, due to the fact that the coordination between these departments is excellent.

Finance department

Marketing department

Sales department

Trading department

Continue…….

Consumer marketing department

Credit control department

Customer service department

Human resource management department

Distributions department

Quality control department

SECTION 01

Importance of Selling For “PEL”

Sales Department of ‘PEL’And It’s Importance

The main objective of the Sales department at PEL is to implement marketing strategies in such a manner that revenues are generated in order to achieve set company’s goals.

This department generally takes orders from the market, gives information to the credit control department. Area credit control department gives information to the head office.

Head office discuss situation with the finance department and then at last finance department gives authority to area credit control department to settle term and conditions with dealers.

Continue……. In PEL the sales department has a great importance because it

has developed a strong dealer network in the market.

The dealers always try to sell the PEL products to the customers because, the company for its products, gives them a high margin.

The management of PEL has also authorized its department to provide more incentives to their dealers than their competitors.

With the hard work they have build strong relationship with dealers that’s why dealers are very conscious about the PEL products and always guide the customer in buying the PEL products.

Because of having an efficient sales department PEL provides the after sale service to customers which increases the customers satisfaction.

The biggest strength of the department is that it handles a complaint within 24 hours in any part of the country, that helps in increasing the satisfaction level of customers.

Continue…….

Sales Budget

In PEL budgeting for sales is done on the basis of the performance of sales team during a fiscal year.

Firstly, the Budget is prepared in HR Department by each Manger of each section (Recruitment & Selection, Training & Development, Performance Management and Organizational Development) and after that Head HR finalize the budget for the approval of owner via Managing Director.

Objective of the company is measured in terms of units sold during a fiscal year. To enhance the sales of the company PEL always tries to enhance the sales budget and to increase the value of share in the market.

SECTION 02

Description of the Sales Force in “PEL”

RECRUITMENT OF SALES FORCE

PEL is always very concerned about building up a good sales force and this duty has been assigned to HR department.

This department overseas the selection criteria for sales people i.e. it sets different guide lines for selection of sales people. After selection it also offers the training to upgrade their skills.

This sales force then has to achieve certain targets which were given to Regional Sales Manager of each particular region by head office for all region.

And the RSM after giving targets to sales officers also gives some incentives to sales officers to achieve the demand targets.

DESCRIPTION OF SALES FORCE

The Sales Force of PEL is competent, efficient, skilled and knowledge.

They always cooperate with the top management in achieving of goals that are assigned to them.

Selling team is well aware about the company’s objectives and is committed to the development of the company.

Top management of PEL delegates the power to the subordinates for achieving the selling and marketing objectives in a specified time period.

So every manager has an authority to take decisions to achieve the goals of company and in this way they save the time and react quickly.

Continue…….

SECTION 03

TRAINING PROGRAM FORSALE PEOPLE

TRAINING PROGRAM DETAILS

There is proper working in PEL HR department named as Training and Development (T&D) Section headed by Assistant Manager (T&D) with assistance of 3 executive level employees.

PEL has two types of employees in sales department, one is at management level and second is selling staff.

The source of training is performance evaluation report of sales force in which reporting officer mentions that either his subordinates requires training or not.

Continue……. After assessing the feedback given by the regional sales

officers, type of training program is finalized and his/her learning program is aligned with business objectives.

Such as Sales Forecasting program is aligned to enhance the business of PEL automatically.

The Sales Forecasting program is integrated with business objectives that sales will increase the profit of PEL and it will also increase its share value in market.

This makes sales force of PEL talented and their competencies increased through training programs.

Continue……. They set the mind of their selling staff that learning is activity

that will also be favorable in their own career.

Selling staff are given certificate after the completion of training program which build their career that’s why they automatically take interest in learning.

An agenda is finalized in which time period is mentioned and implementation is made accurately.

During the training program practical study case, business games and critical incidents etc. are given as assignments and their weighted is added in final marks. So the employees focus on their Grade on Certificate.

The training programs are designed according to the level of employees and budget for training, also the training programs have different methods for implementation.

According to designed programs and budget aspects trainers are hired and internal section do the planning.

Most of the groups training is given in the Auditorium of PEL and individual training are given through external sources like LUMS, UMT and foreign countries.

After the completion of the training employees are evaluated through Evaluation form and normally training results outcome after 6 months at least.

Continue…….

SECTION 04

CUSTOMER PROFILE

PEL is doing mass marketing which means it’s customers are not limited to one county but all over the world.

The main target of PEL is Pakistani market. In Pakistan the products of PEL are available to customers at every city.

PEL in Pakistan has divided it’s customers into two zones;

1) North Zone

2) South Zone

Continue…….

NORTH ZONE

North Zone includes:-

Punjab

KPK

SOUTH ZONE

South zone includes:

Sind

Baluchistan

Continue…….

REGIONS:

PEL has also divided its customers into different regions and there are six regions of PEL in Pakistan. They are:-

Karachi

Lahore

Multan

Gujranwala

Rawalpindi

Faislabad

Continue…….

POTENTIAL CUSTOMERS

PEL has captured a large number of customers in Pakistani market because it has a strong dealer’s network and the products are easily available throughout Pakistan.

Now PEL has been planning for last two years to take advantage of good relationship of Pakistani government with India by rolling out its products in Indian Punjab, a market larger than all of Pakistan.

Out of the 10 million units of refrigerators sold in India annually, PEL is hopeful to capture at least two to three millions units of the market, said PEL Managing Director during a corporate briefing.

Pakistan’s second largest home appliance manufacturer has planned to introduce its product to the customers of Indian Punjab and then gradually spread to rest of the country.

PEL provide a quality product for its customers. It is purely base on local demands and needs, and sure that its products will be appreciated by that people who are quality conscious in India also.

Internationally PEL has customers in a number of countries for many years and it has captured a healthy market share in those countries because of the fact that customers admire the products delivered by the PEL.

Continue…….

EXPORTING COUNTRIES

AFGHANISTAN KINGDOM OF SAUDI ARABIA SWAZILAND GREECE KUWAIT KAZAKHSTAN BANGLADESH YEMEN NIGERIA HUNGRY

SECTION 05

PERFORMANCE STANDARDS&

COMPENSATION

PERFORMANCE STANDARDS

PEL Company makes the personnel movement to place employees in positions where their effectiveness is best utilized within the company.

This is achieved thorough proper matching of skills, capabilities individual aspirations of current employees against the current and potential manpower needs of the company.

PEL encourages internal advancement for employees while seniority is not necessarily a factor in promotions.

The ability to perform required duties well is the main consideration.

Continue……. All the companies have different standard for performance

appraisal. In PEL, Performance Standards are set on the basis of numerical rating form e.g.

4 = Outstanding3 = Very Good2 = Good1 = Need Improvement

If need improvement then reporting officer will recommend for employee strength and development and will forward his request to HR department then HR department will take the final decision on those competencies of the employee.

Training areas are defined by the reporting officer and according to T&D department his schedule for training is finalized.

Quarterly appraisals shows the employee status and finally concerned authority recommend for promotion or not.

Salary is increased on the basis of Profit Margin, PEL criteria and policy, salary is finalized by HR department.

It is also kept in mind that the 1, 2, 3 & 4 numeric which show the rating of the employees appraisal and at the time of increment of salary increment is add in basic salary and adjustment is made as separate allowance.

Continue…….

PERFORMANCE APPRAISAL

In PEL performance appraisal is recognized as an important element of the jobs of managers, supervisors and employees. It provides significant help in meeting departmental and company objectives.

Each sales person of PEL has annual targets, which are measured with his or her standard targets to compensate the employee on the basis of performance.

Performance appraisal is totally based on sales person’s annual work performance. Also the sales persons working on targets, as working on building relationship with new dealer, there may be an appraisal after each assignment but there still be an overall review at the end of the year.

WHO CARRIED OUT THE APPRAISAL PROCESS

Usually, the line managers are primarily responsible for conducting performance appraisals.

They must tell employee how they are doing and make salary and training decisions.

Personnel managers can aid line managers by providing information on how to use the performance appraisal forms and by making sure that the result of each appraisal becomes a part of each employee’s records, readily available for management decisions such as determining who to promote.

RECOMMENDATIONS To gain more competitive advantage over their competitors, PEL

has to work on their distribution network.

The company must give more incentives to the dealers so that they remain loyal to the company and promote the products.

Introduction of seasonal schemes can help to boost sales.

Refreshing courses should be adequate and more frequent during the year.

When sales supervisor provide negative feedback he should immediately counterbalance it with positive statement for the purpose of encouragement in that situation.

Continue…….

There should be a continuous monitoring of performance.

When performance deviates from plans one does not have to wait for the next periodic review to correct it.

The supervisor and subordinate should discuss the situation immediately so the corrective actions can be taken at once in order to avoid the major disasters.

Whether performance appraisal discussions are held monthly, quarterly, annually appraise should be clear about what he/she is doing right and wrong ,and how he/she can overcome there deficiencies for the future appraisal.

Performance appraisal should be conducted in a way that employee should not perceive it as a fatigue or threat for there job but it should take it as an opportunity to add or contribute more value in work of the company.

Continue…….