Project on New Product Development on Unilever

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COMPANY HISTORY

Unilever Pakistan limited is a largest consumer products company in Pakistan. It was born out of dream to Set-up in Pakistan an industry of excellence in 1948 as Lever Brothers Pakistan Limited. Unilever Pakistan Limited is Manufacturing & Marketing its Detergents, Personal Products, Tea, SCC Products & Ice Cream over 50 brands.  
In line with global alignment strategy and in order to leverage the synergies of Unilever’s International brand strength, market edge and corporate image, Lever Brothers Pakistan Limited has change its name to Unilever Pakistan Limited, in August 2002

VISION STATEMENT

 Touching Hearts,
Changing Lives”

MISSION STATEMENT OF UNILEVER
  • We are the leading consumers Products Company in Pakistan, a multination with deep roots in the country.
  • We attract and develop highly talented people who are excited, empowered and committed to deliver double-digit growth.
  • We serve the everyday needs of all consumers every where for foods, Hygiene and Beauty through branded products and services that deliver the best quality and value.
  • We strive to remain an ever simple and enterprising business
  • We use our superior consumer understanding to produce break through innovation in brands and channels.
  • Our brands capture the hearts of consumer’s through outstanding communication.
  • Through managing a responsive supply chain, we maximize value from suppliers to customers.
                       CURRENT PRODUCT RANGE

SSC

    1. BRANDS

-         DALDA BNASPATI
-         DALDA COOKING OIL
-         PLANTA COOKING OIL
-         BLUE BAND MARGARINE
-         INDUSTRIAL AND BAKERY FATS
-         MELANGE
 
2. BEVERAGES
-         PEARL DUST
-         RED ROSE
-         A-1 KARAK CHAP
-         KENYA MIXTURE
-         RICHBRU
-         HOTEL CHAI
-         LIPTON

3. HOME AND PERSONALCARE 
    a) Skin Cleaning:
-         LUX
-         LIFEBUOY
-         FAIR & LOVELY SOAP
 
 b) Fabric Wash

 
-         SURF EXCEL
-         WHEEL

c) Home Care:
-         Vim Scorer
-         Vim Bar
-         VIM BAR
-         MAGIC WHEEL

4. Personal Care
-         FAIR AND LOVELY
-         PONDS CREAM
-         PONDS TALC
-         SUNSILK SHAMPOO
-         LIFEBUOY SHAMPOO

5. Oral Care 
        CLOSE UP

MISSION STATEMENT REGARDING EMPLOYEES:


We believe in trust, truth and outstanding teamwork. We value a creative and fun environment.

-         Over  Rs. 20 billion  of  sales  with  household  items
-         More  than  50  brands
-         Over 2500  hundred  employees
-         Lever brothers  is  a  part  of  Unilever , which  is  a Global company




UNI-LEVER IS COMMITTED TO TRAIN & DEVELOP ALL ITS EMPLOYEES THROUGH


-         Performance  development  planning
-         Emphasizes  on  professional  skills
-         Managerial  competencies
-         Formal  training  events


Per Share Income to shareholders:
  

OFFICERS
Musharaf  hai  (Chairman & chief executive)
Amar naseem    ( seceratary)

TABLE 1.1
Recent stock performance
1 Week
4.0%

4 Weeks
18.2%
13 Weeks
38.3%
52 Weeks
69.9%







Earnings / Dividends (as of 9/30/02)

Earnings
Dividends
Most Recent Qtr
76.86
59.00
Last 12 Months
132.7
96.50

Ratio Analysis

Price / Earnings Ratio
9.80

Dividend Yield
7.42%
Price / Sales Ratio
0.89

Payout Ratio
72.73%
Price / Book Ratio
14.46

% Held by Insiders
N/A

Address

Fatima Jinnah Road
Karachi 75530
Pakistan



Market Overview For Cooking Oil &Ghee Industry

·        Market share and number of customers:

The Corporation sells products in over 150 countries and has annual sales of approximately $ 46 billion (£31,5bn). Unilever controls subsidiaries in at least 90 countries and employs 295,000 (in 2000) people
·        Demographic elements:
Unilever has products in all product lines for all age groups like confectioneries for kids, beauty product for both male and female.
Unilever has products depending upon the regional/geographical differences for the countries in which it is serving.

CURRENT MARKET SITUATION:

Current Market Situation:
Dalda is an imported stuff that’s why it cannot be calculated in terms of rupees.Total market size is 1.5 million tons annually.Total market size is not growing as it should be,but total market size/growing rate of Dalda is 5% per year.


                               Total Market Size of Dalda in previous years:

                                           TABLE 1.2

Years
Growth rate
(thsd.tons)
2003
51
2004
63
2005
71
2006
80
2007
89
2008
97

Unilever’s Analysis

Goal              
             Unilever goal is to add Vitality to life. We meet everyday need of nutrition, hygiene and personal care with brands that help people to feel good, look good and get more out of life.

Culture
              Our deep roots in local culture and in markets give us our strong relationship with consumers and are the foundation for our future growth. We will bring our wealth of knowledge and international expertise to the service of local consumers.
                                                                               
Strength
-         Unilever is a multinational organization
-         It deals with highly differential products
-         Always provides innovative products
-         Strong customer relationship



Weaknesses
-         Its less focus on reshaping product

Customer Analysis for Dalda

Number
              In the fiscal year of 2001 the estimates were 180000 metric tons. Imports were expected to grow to 200000 metric tons for the following year. Imports were of US$ 1 billion annually. The average annual growth rate for edible oil industry is 12.5% per annum for several years.the demand for cookong oil is estimated to be grow at 5 % per annum


Type
-         Home consumers
-         Hotels
-         Organizations
-         Industries


Value drivers
                      We provide the best packing option by the following manner;
-         Plastic bottles
-         Steal coded seals
-         Convenient to use


Decision Process
                        The decision process is very simple because of
-         Simple decision
-         Daily use product
-         More frequently purchase

INTERNAL AUDIT  FOR  DALDA






We will discuss 4 Ps of marketing mix for DALDA

                                                   PRODUCT

BRAND NAME:

        DALDA cooking oil

QUALITY:

     DALDA is providing excellent quality followed by ISO
The enterprise operates under the quality control system in compliance with the international standard requirements of quality management system ISO 9001

PACKAGING:
    DALDA introduced plastic bottles.
    DALDA has also introduced different sizes of bottles for cooking oil packing.










TABLE 1.4

AVAILABLE  SIZES
PRICES
1 LITER
250
2.5 LITER
450
5 LITER
850









PRICE

        We are offering competitive introductory price which is mentioned below

  • 750 for 5 litre cane

DISCOUNT:
       We are offering discount 10 Rs each cane in order to capture maximum attention of our target market

PAYMENT TERM AND FINANCE POSITION
  • Not available


LEASING OPTION;

  • Not available
PLACE

DISTRIBUTION CHANNEL:
  • Distribution channel includes whole sellers grocery stores utility stores


LOCATION:

  • All over Pakistan


LOGISTICS:

  • Provide career service to place the product
                                         PROMOTION

ADVERTISING PLANS:
  • Print Media
  • Electronic Media
  • Radio FM


PROMOTIONAL PROGRAMMES:

DALDA has survived over a long period of time by reaching its customers through different promotional plans

  • Superior marketing
  • Advance communications
  • Innovative radio programs
  • Effective press usage
  • Cinema
  • DALDA’s cook book (VOL 1& 2)
  • DALDA ka Dastarkhawan
  • DALDA Cooking competition
  • DALDA Food Show
  • Free sampling
External Audit

Main competitors:
·         
·        HABIB
·        SEASONS
·        RAFHAN
·        SOYA SUPREME

Competitor analysis-HABIB COOKING OIL

Market Position:
TABLE 1.3
HABIB

FREQUENCY
PERCENT
VALID PERCENT
COMMULATIVE PERCENT
VALID    PRICE
4
13.3
13.3
13.3
QUALITY
6
20.00
20.00
33.3
NUTRITION
9
30.00
30.00
63.3
AVAILABILITY
4
13.3
13.3
76.7
PACKAGING
7
23.3
23.3
100
TOTAL
30
100
100


STRENGTH:

-         Second largest oil brand
-         Asli ghee smell


WEAKNESS:

-         Less innovative
-         Less sales

SWOT Analysis for HABIB

  Strength

  • Hygienic oil
  • High volume or sale
  • Number one brand
  • New idea of packaging
     Weaknesses

  • Concentrate on economy pack
  • Target on the housewives
  • Ignore industrial consumer

Opportunities

  • Large market share
  • High profit
  • New investment
  • New innovation


Threats

·        Value shift
·        New product
·        Intense competition
·        New competitor


Market Segmentation

Description

Ø      Premium
Ø      Females between the ages of (25-35) years
Ø      Mothers playing an influential role in decision making
Ø      A household of four and more
Ø      Target personality include low income segment as well (loose and mid-price)
  
                  Pest analysis for cooking oil industry

Political Factors:
·        Democracies are under pressure to show that they can protect the health of their population.
·        Global society is under pressure to demonstrate it can mobilize resources to effectively tackle global social problems.
·        Tackling health problems requires long term thinking, complex partnerships and innovative forms of organization.
·        Health suffers more in wars and other complex consequences.


Economical Factors:

  • Rising price of palm oil
  • Purchasing power is affected by the inflation
  • Import of palm oil is affected by dollar exchange rate

Social factors:

  • Health is important to people-consistently regarded by rich or poor
  • There is a complex interaction between the right of an individual good health; the right of community to protect itself against health threats; and its responsibility to provide for the health of its members.
  • Health protection requires across the society professions organizations etc. public health relies on public support of its “licenses to operate” and its ability to change behavior.

Technological factors:

  • Health problems are always dynamic and sometimes this change is unpredictable. Health interventions can lead to new health hazards.
  • Without knowledge about health, there can be no response to health threats.
  • Technology is poorly distributed in areas where people are unable to create demand for it effectively.
  • New technologies are the result of increasingly sophisticated processes and currently seem to be of decreasing cost effectiveness.
  • New technologies pose poorly-understood risks as well as offering hard to qualify benefits
  • Information technology has a potential to revolutionize the disseminations of knowledge about health.
  ASSUMPTIONS:

It is assumed that the political, economical, and social condition will remain same during the whole year in which the product is launched e-g market price of palm seeds.
  
MARKETING OBJECTIVES & STRATEGIES FOR NEW PRODUCT:

Marketing Objectives:


1.  Sales objective:
Sales of worth Rs.2500000 for initial 12 months by doing promotional and introduction 
       activities

.
2.  Profitability Objective:
To earn profit of 10% of sales initially.


3.  Market Share Objective:
To attain 05-10% market share for initial one year.


4.  Customer Satisfaction:
 We plan to provide our customers with the best of quality, health and convenience, at low and affordable prices.

Ways Planned To Adopt To Help Improve Our Customer Service:

  1. Stay in contact with customers on a regular basis
  2. Create a customer focus group by inviting 10 to 20 loyal customers to meet regularly.
  3. Have a web site that is easy to navigate. Add a frequently asked question's "FAQ" page and explain anything that might confuse your customers or visitors.
  4. Resolve customer complaints quickly and completely. Answer all e-mail and phone calls within a few hours.
  5. Not to make customers or visitors hunt for contact information. Make it easy for them to contact us.
  6. Give our employees bonuses or incentives to practice excellent customer service. Tell employees to be flexible with each individual customer, each one has different concerns, needs and wants.
  7. Give your customers more than they expect.
  8. Reward in points -- give customers a point for every rupee they spend.

BRAND AWARENESS


COMPANY NAME:        UNILEVER


BRAND NAME:  A GIFT FOR THE NEW MILLENIUM-OMEGA 3    ALGAE
COOKING OIL

CATEGORY:                    COOKING OIL


AVAILABLE SIZES:
                                                                                                                                                                     
·        1 LITER
·        2.5 LITER
·        5 LITER

PACKAGING:

·        PLASTIC BOTTLES

MAJOR CITIES INITIALLY TARGETED:

·        LAHORE
·        ISLAMABAD
·        KARACHI
·        PESHAWAR
·        RAWALPINDI

MARKET SEGMENTATION

ALGAE COOKING the following OIL will segment their market on criteria

GEOGRAPHIC SEGMENTATION:
(a) REGION:
·Country –wise
·Province-wise
·City-wise etc

DEMOGRAPHIC SEGMENTATION:
       (a) AGE:
·        Under 25, 25-45,over 45
       (b)Gender:
·        Male, Female
        (c) Income:
·        A-F households with class A households having the highest income and class F having the lowest.
        (d)Education:
·        Uneducated, Primary school,Matriculation,Intermediate,Bachlors,Masters ,PhD

PSYCHOGRAPHIC SEGMENTATION:
   (a) SOCIAL CLASS:
·        A-F households –A being upper class and F being the lower class
BEHAVIORAL SEGMENTATION:
   (a) Purchase Occasion:
·        Regular occasion
·        Special occasion

   (b) Benefits Sought:
·        Quality
·        Service
·        Economy

(c) User Status:
·        Nonuser
·        Ex-user
·        Potential user
·        Regular user

(d) Loyalty Status:
·        None
·        Medium
·        Strong
·        Absolute
                                      
                   
TARGET MARKET:

GEOGRAPHIC

(a) Region:
 Algae cooking oil will be a nation-wide brand and it will target all areas in urban Sindh, Punjab and N.W.F.P

DEMOGRAPHIC

(a) AGE:
·        25-45

(b) GENDER;
·        Traditional female house wives

(c) INCOME:
·        Households A with income range..20000 and above
·        Households B* with income range…10000-15000
·        Households C** with income range….7000-10000

(d) EDUCATION:
·        Atleast Matriculatio

PSYCHOGRAPHIC

(a) Social Class:
·        Households A & B*

(b) LIFE STYLE & PERSONALITY:
·        ALGAE cooking oil will be targeted to those households who are more or less in 25 -45 age group .This women is traditional but educated at least Matriculation and loves to take care of her family. She is quality conscious and health conscious and will be  prepare to pay a premium price for good quality products

                             PRODUCT POSITIONING
A GIFT FOR THE NEW MILLENIUM
ALGAE COOKING OIL
                                               
EAT HEALTHY LIVE HEALTHY 
  • Have a vastly improved memory
  • Improve your quality of life
  • Feel great
  • Look great
  • Have healthy smooth skin
  • A strong immune system
  • A positive out look on life
  • Have more get up and go than you have ever had
  • Have thick healthy hair

         MARKETING MIX STRATEGY FOR

OMEGA 3 ALGAE COOKING OIL

The Marketing Mix is the set of marketing tools that work together to affect the market. The four elements of the Mix are, of course the Product ITSELF; the Price at which it is offered for sale in the market; the Place or how the product is distributed; and the Promotion which brings the product to the attention of the customers, arouses his/her interest, builds up the desire for the product and finally moves him/her to act /purchase the product.
The following section of this project will deal the Marketing Mix used by UNILEVER for its new brand ALGAE COOKING OIL.

PRODUCT

Anything that can be offered to the market for attention, acquisition, use or consumption that might satisfy a want or need

PRODUCT


PRODUCT CLASSIFICATION:
ALGAE COOKING OIL is a consumer product.


PRODUCT ATTRIBUTES:
Product Quality:
Unilever promises the highest quality of all of its products. As such ALGAE COKING OIL is also manufactured to the highest standards. The consistency in Unilever promises and delivered products please customers.


Product Features:
Algae Cooking Oil offers two new best features for the new millennium; the power of algae and the omega 3.
Omega 3 algae oil is nutritionally identical to fish oil.  It contains DHA and EPA.  But it is not an animal product.  It conserves fish resources while providing us with an excellent source of omega 3 essential fatty acids.  Algae oil could replace both fish oil and flaxseed oil as an omega 3 supplement now
The algal-oil feed stock that is used to produce bio diesel can also be used for fuel directly as Straight Vegetable Oil(SVO)
The algal-oil feedstock that is used to produce biodisel can also be used for fuel directly as "Straight Vegetable Oil", (SVO). The benefit of using the oil in this manner is that it doesn't require the additional energy needed for transesterification,


PRODUCT
SERVICES
PERSONNEL
IMAGE
TOTAL
CUSTOMER VALUE
Packs/tins of
omega 3 algae oil
Cookery program
Advisory
service
Social and Esteem needs met

Product Design:
Unilever has once again compliance with its customer oriented policy by introducing a new brand; omega 3 cooking oil in its current product line, that’s a unique product with enriched features. It is altogether a new product, packaged in a one liter polyjar.

Attributes
Effects & Ingredients
consistency
light
vitamins
A,D,E
Fatty acids
EPA Omega 3
Energy power
Algae(Chlorella)
Color of the Product
Dark

Packaging:

All Unilever product’s packaging are imported. Even the ink used on packaging is imported. The packaging is of the highest standards; at least in the local market. Omega 3 Algae oil is available in tins, bottles and poly-bags. All packages are clearly and legibly labeled as to contents and ingredients. All packages are easy and safe to use. The omega 3 cooking oil packaging color is transparent with green and black labels.

Branding:
There are typically four levels of meaning conveyed by Unilever about its new product in cooking oil range.

Levels
Brand –Omega 3 algae Cooking oil
Attributes
Premium quality, high prestige
Benefits
Tasty food, cooking ease
Values
Motherly love, tradition
Personality
Cooking expert mother,housewifes


Brand Strategy:

                               Existing product category       New product Catgory
Existing Brand
Names
Line Extension

Brand Extension
Dalda sunflower
Dalda cookoing oil
Dalda lajawab

Multi Brand
Dalda planta cooking oil
New Brand
Omega 3 Algae Cooking Oil
                                                                                                                             







PRICE

The amount of money charged for a product  or service, or the sum of the values that consumers exchange for the benefits of having or using the product or service. 

PRICE

Unilever’s marketing objective is primarily to tap the upper middle class and upper class segments.For this Unilever has to achieve Product Quality Leadreship in doing so they have to incur more R&D costs.To cover these costs Umilever has to follow the Value Based Pricing and Premium Based Strategies.
The following grid summarizes the above discussion on pricing strategy.


       Higher Prices                                           Lower prices

Higher quality
Premium strategy
Value based pricing
Good Value strategy
Overcharging strategy
Economy strategy



Lower Quality

                                               PLACE

The set of people and firms involved in the transfer of the title to a  product as the product moves from producer to ultimate consumer or business user

PLACE:
UNILEVER PAKISTAN believes in synergy, that is a perfect blend of all the components of marketing mix. Proof lies in it having the most efficient and the largest distribution (networks) system in our country
Multiple distribution channels are to be used for omega 3 algae cooking oil.

Channel Levels:
Multiple distribution channels are used by Unilever are as follows

Factory               Depot                 Distributor               wholeseller Retailer





                                                                                                Customer
Sales Setup:

                                        Sales Controller



                                                  GSM                   TMM




                                                 Branch Manager       Sales Category


 



                                               Area Manager


                               LDM or Territory Managers & JMs
   
                   PROMOTION

Element in an organization’s marketing mix that serves to inform, persuade and remind the market of a product and the organization selling it.


Unilever being the market –oriented and the customer-oriented company its marketing efforts are relatively the most.
The most concentrated promotion techniques used are television and advertisements
For omega 3 Algae cooking oil the marketing used will be Visibility marketing and Media marketing.

VISIBILITY MARKETING:
Omega 3 algae cooking oil will concentrate more on visibility and availability. this includes print advertisements, price cards, posters at vendor’s shops, sign boards,buntings,flags etc

MEDIA MARKETING:
Unilever will use different newspapers and magazines for promoting omega 3 cooking oil but the major emphasize will be on advertisements shown at the times loving mothers are watching TV. The ads also run at different times of the day specially between 6.30 to 7.30

It reads: Eat Healthy Live Healthy

The message concentrates on aroma, taste, healthy and happy cheerful life.The theme wsas image building. It informs about the product and persuades the consumers to buy it.
The color of the omega 3 cookimg oil is lightened as buyers prefer light oil.It will get little support due to strong competition from the likes of corn oil, canola oil,etc therefore not much of the advertising budget, rather promotional efforts are allocated towards it. These ads emphasize lighteness and the strong energy source  i.e  algae as a main ingredient of the omega 3 algae cooking oil .

SALES  PROMOTION:
Unilever will also play its role in promoting omega 3 algae cooking oil by arranging different events like cooking contests games and shows

PERSONAL SELLING:
Unilever will adopt personal selling in order to introduce and promote omega 3 algae cooking oil. It will also try to come up with consumer promotion by giving trade off to the retailers.

OTHER MEDIUMS:
Print ads in magazines such as Women’s Own, She, etc, and those read by average but literate house wives. Buntings, posters, trade flags(hung at the retailers) inducing consumers to try the latest taste for omega 3 algae cooking oil. 
Besides this the cookery programs shown on TV will be a good promotion tactic as these programs will show omega 3 algae cooking oil use in different Pakistani as well as other countries’ popular dishes. In this way the viewers will remember the brand name through the message “gift for the new millennium; eat healthy live healthy”.
The symbol and the color of the bottle of omega 3 algae cooking oil is also a good way to communicate to the consumer who can’t read but can easily recognize the bottle by the algae symbol or the green and black color scheme.
The unique and attractive design of the bottles is also a way of consumers’ persuasions for new omega 3 algae cooking oil.
Different sizes (plastic bottles of 5, 2.5 & 1 liter) are available for the convenience of consumers and target all segments of the market


Alternative marketing plan:

If Omega 3 Algae cooking oil does not go well in market than the alternative market plan to reintroduce Omega 3 Algae Cooking Oil will be:
                                             
Product
Change in color of oil:
             If the consumers bothered about the dark color of the cooking oil than unilever will go for the lightining of color of the Omega 3 Algae Cooking oil in ordre to give the effect of lightness for more health conscious consumers.

Change in Packaging size:
              Unilever has launched three different packaging sizes of 1 liter, 2.5 liter, 5 liter respectively.It can introduce 0.5 liter poly jar in order to attract middle class and budget conscious consumers.

Price

Discount offerings:
               Unilever can offer discunt to its customers in order to attract more number of customers.
Reduction in prices:
                Unilever can go for market penetration strategy by offering less prices.

Promotion
Tokens and Gift hampers:
               Unilever can offer tokens on purchasing Omega 3 Algae Cooking Oil and also give gift hampers by a lucky draw to its customers.

Place
Wide Distribution:
                Unilever can adopt wide distribution by franchising.


Important Activities of Promotional Plan:

Following are the activities of the promotional plan for the Algae cooking oil

Sr.No
Starting Date
Ending Date
Activity
Budget
Responsible Personnel
Department
01.
Jan 01,10
Jan 15,10
Finance arrangement
7000000
Mr.Aziz Mirza
finance
02.
Feb 01,10
March 31,10
Electronic and Print media advertisements
2500000
Miss.Sehrish
Marketing
03.
April 05
June 30,10
Billboards and hoardings
1500000
Miss.Rabia
Marketing
04.
July 02,10
Sep 15,10
Free sampling of the 50 ml oil bottle
500000
Mr.Amir
Marketing
05.
Sep 11,10
Nov 20,10
Live cooking shows in different cities
650000
Miss.Madiha
Marketing
06.
Nov 25,10
Dec 31,10
Personnel Selling
1250000
Miss.Tabassum
Marketing

Objective of each Promotional activity:

Activity. No
Objective of each Promotional Activity
01. Finance Arrangement
It is to assure that the required finance is issued from the finance department for promotional plan and activities.
02. Electronic and print media Advertisement
This activity is the aggressive marketing campaign for the launch of the Algae cooking oil. People will be able to get to know about the new oil, its qualities and better health ingredients.
03. Billboards and Hoardings
It’s also the part of marketing campaign where hug\e billboards are installed at signals and places where people can view the Algae cooking oil’s advertisements.
04. Free sampling
Free sampling is to introduce the Algae cooking oil to the local markets by asking people to check the taste of the Algae cooking oil.
05. Live cooking shows in different cities
This activity is also for the introduction of Algae cooking oil to those customers which do not have the facility to watch advertisements on TV or those who are illiterate.
06. Personal selling
It is to sale at cost by the company for the introduction of the Algae cooking oil initially in market.


MEASUREMENT REVIEW AND CONTROL


In case there are certain deviations in the market situation then the organization has to take certain precautionary steps in order to control and manage those immediate changes as follows...

Task
The standard
How to set the standard
Performance measurement & review
What to check& how to control
1. To achieve personal sales targets
Sales target per period of time for individual groups and or products
Analysis of territorial potential, individual customers potential. Discussion and agreement between salesperson and manager.
Comparison of individual salesperson's product sales against targets
Significant shortfall between target and achievement over meaningful period of time
2. To sell the required range and quantity to individual customers
Achievement of specified range and quantity of sales to a particular customer or group of customers within a time period
Analysis of individual customer record of potential and present sales. Discussion and agreement between salesperson and manager.
Scrutiny of individual customer records. Observation of selling in the field.
Failure to achieve agreed objectives. Complacency within range of sales made to individual customers.
3. To plan journeys and call frequencies to achieve minimal practicable selling cost
To achieve appropriate call frequency on individual customers. Number of live customer calls during a given time period
Analysis of individual customers potential. Analysis of order/call ratios. Discussion and agreement between salesperson and manager.
Scrutiny of individual customer records. Analysis of order/ call ratio. Examination of call reports.
High ratio of calls to an individual customer relative to that customers yield. Shortfall on agreed total number of calls made over an agreed period of time.
4. To acquire new customers
Number of prospect calls during a time period. Selling new products to existing customers.
Identify total number of potential and actual customers that could produce results. Identify opportunity areas for prospecting.
Examination of call reports, records of new accounts opened, ratio of existing to potential customers.
Shortfall in number of prospect call from agreed standard. Low ratio of existing to potential customers.

5. To make a sales approach of the required quality

To exercise the necessary skills and techniques required to achieve the identified objective. Continuous use of sales material.

Standard to be agreed in discussion between manager and salesperson related to company standards.

Regular observations of field selling using a systematic analysis of performance in each stage of the sales approach.

Failure to identify objectives of each stage of sales approach, identify specific areas of skill weakness, use of support material.