AN OVERVIEW OF SALES PROMOTION
Theoretical background of the report
Selling is one of the world’s oldest professions. In a very real sense, every normal individual, each person in normal circumstances has a “selling” job to do. Every one who must deal with or work with people uses principles of personal selling. People who do the selling are called by a variety of names. However, members of Sales Forces or Field force, play a key role in modern marketing organization.
2.1 AN OVERVIEW OF SALES PROMOTION
Sales promotion is a key ingredient in marketing campaigns. Blattberg, Robert C. and Neslin, Scott A. (1990) defines it as follows –
Sales promotion consists of a diverse collection of incentive tools, mostly short-term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade.
Whereas advertising offers a reason to buy, sales promotion offers an incentive to buy. Sales promotion includes tools for consumer promotion (samples, coupon, cash refund offers, prices off, premiums, prizes, patronage rewards, free trials, warranties, tie-in-promotions, cross-promotions, point of purchase displays, and demonstrations); trade promotion (prices off, advertising and display allowances, and free goods); and business and sales force promotion (trade shows and conventions, contest for sales reps, and specialty advertising).
2.3 Business and Sales Force Promotion Tools
Companies spend billions of dollars on business- and sales force promotion tools. These tools are used to gather business leads, impress and reward customers, and motivate the sales force to greater effort.
Philip Kotler, (2000) identifies some of the major business and sales force promotion tools, such as –
Trade Shows and Conventions – Industry associations can organize annual trade shows and conventions. Firms selling products and services to the particular industry buy space and set up booths and displays demonstrate their products. Participating vendors can expect several benefits, including generating new sales leads, maintaining customer contacts, introducing new products, meeting new customers, selling more to present customers, and educating customers with publications, videos, and other audio visual materials.
Sales Contests – A sales contest aims at inducing the sales force or dealers to increase their sales results over a stated period, with prizes going to those who succeed. Companies can sponsor annual or more frequent sales contests for their sales force; top performers may receive trips, cash prizes, gifts, or points, which the receiver can turn into a variety of prizes. Incentives work best when they are tied to measurable and achievable sales objectives (such as finding new accounts or reviving old accounts) where employees feel they have an equal chance.
Specialty Advertising – Specialty advertising consists of useful, low-cost items bearing the company’s name and address, and some times an advertising message that sales people give to prospects and customers.
2.4 Salesmanship is an Art not a Science: An argument
Selling and the nature of individuals, on the first point, the argument is that salesmanship is an art not a science, and that, because it is not a science, it cannot be taught and learned. On the second point, it is believed that some individuals are born salesman, while others just are not endowed with the ability to sell and there is little or nothing they can do about it.
It would seem more in line with facts to recognize that there are certain sound principles of selling that are so long established and susceptible to proof that they cannot be challenged successfully. This principles can be examined and understood in a classroom and can then be proved by pragmatic testing on the outside.
There are two conclusions that are drawn from the concept of the nature of individuals. First, it is true that some persons are not attracted to selling as a profession, and if they did enter the field, that would be miserable failures, whereas, if they undertake some other, more suitable vacation, they can be happy, successful and worthwhile to society. Other persons are better qualified to enter selling and to become outstanding in that field because of their likes and dislikes, their talents, and their basic nature.
The second and more significant observation is that each group, eve the group without “natural” sales ability, can improve the quality and increase the quality of its sales ability. An outstandingly successful person is not born ready-made that way, be he a farmer, a doctor, a merchant, a manufacturer, or a sales man. Much of his success must be attributed to hard work, practice, and a fierce determination to improve. Companies would not conduct elaborate and expensive sales training programs if the principles of personal selling could not be taught and learned.
There is no implication here that one can study and become a perfect salesman, for such a salesman does not exist. Every salesman makes mistakes, has handicaps he never completely overcomes, and loses sales. Knowledge, however, is conducive to improvement, to a lengthening of the odds for success, to the reduction of mistakes, and to the raiding of the salesman’s average.
2.5 Who are the Field Force / Sale force?
An individual acting for a company by performing one or more of the following activities, like prospecting, communicating, servicing, and information gathering, is known as sales person. These sales persons are known as sales force or field force.
2.6 What is salesmanship?
“Salesmanship is the art of persuading you to spend money you do not have for something you do not need for more than it is work.”
Salesmanship is the art of so successfully demonstrating the merits of goods and services of a house that a permanent customer is made.
2.7 Importance or role of Sales force
Most companies use sales force and many companies assign them an important role in the marketing mix. For companies selling business products, the firm’s sales force work directly with customers. Besides, the sales force is the customer’s only direct contact with the company and therefore may be viewed by customers as representing the company itself. But usually consumers do not meet salespeople or even know about them. But the sales force works behind the scenes, dealing with wholesalers and retails to obtain their support and helping them become effective in selling the firm’s products.
As an element of the marketing mix, the sales force is very effective in achieving certain marketing objectives. This force also carry’s out other activities like, prospecting, communicating, selling and servicing and information gathering. Besides that a market –focused sales force also works to produce customer satisfaction and company profit.
2.8 The Salesman’s Obligations to his Company
A sales man owes something in two directions: to his employer and to his prospects and customers. The next section considers these obligations.
From the company’s point of view, the salesman’s major long-range duty is to turn a profit. The company wants to continue in business, and this will not be possible unless its operation is profitable.
Selling at a profit demands that the salesman explore his territory and analyze it in order to find out just how much opportunity is present. If a virgin territory is being opened, prospects must first be identified and then converted into customers’ in an established territory, the program calls for holding present customers, making them larger customers, and adding new customers.
Although the selling of merchandise at a profit is the primary obligation, it may have to be postponed, on occasion, in favor of promotion of goodwill or building up the customer’s desire for the product. Likewise, in an extreme seller’s market when merchandise is being rationed or is unavailable to all, the salesman finds his chief concern to be that of keeping on good terms with those he hopes to serve in the future.
In training the salesman, company spends both time and money; the salesman should justify this expenditure. In making the salesman responsible for a part of the company’s activities, the company acknowledges belief of a certain capacity and potentiality in him; the salesman should justify this faith.
A salesman must be an efficient manager of himself, always in control, purposeful, active, and he must conduct himself so as to get the greatest possible return from his efforts. His time and energy are budgeted wisely, and there is no wasted motion.
Immediately upon joining the company, the sales man should try to fit himself into the sprit of the organization. He must learn as much about the company as he can, not operating details at first, but attitudes and policies. He should be eager to get acquainted with the personality of the firm, to appreciate its aims and ideals, and to understand its methods of doing business and the principles that shapes its policies.
2.9 The Salesman’s Obligations to his buyers
No one, of course, question the obligation of a salesman to deal honorably with buyers. The relationship between salesman and buyer must be characterized by mutual loyalty, trust, and dependence. The salesman must respect the buyer’s position. His policies, his time; in return the salesman hopes for the buyer’s confidence and goodwill.
If he is to treat his buyers fairly, the salesman will not sell to one unless he truly thinks that the buyer will benefit adequately from the purchase. Here’s a good test: if the salesman can sit in the buyer’s chair assume the role of buyer, and buy what the salesman is offering from across the desk, he can recommend the purchase sincerely and in good faith. Because the typical salesman is an optimist, he tends too have a bias which must be discounted somewhat by prospects. There are, however, pragmatic as well as ethical reasons for the salesman’s being frank and fair. Hard, aggressive selling is sometimes necessary because products and some buyers require it, but to carry this so far that the result is a disgruntled or disappointed buyer is not wise. Hard selling and satisfied customers, however, can coexist.
Hard aggressive selling isn’t to be confused with ‘high pressure’ selling, a type of selling which violates the principle of fair treatment. High pressure selling is flagrant when a sales man uses extravagant means to sell something to a buyer, which the buyer neither wants nor needs.
Because each individual is an assortment of desires with only limited purchasing power, he welcomes any assistance that will enable him more nearly to realize his desires and to provide for his needs. In general, buyers-for-consumption want increased satisfaction, whereas business buyers want to make or save more money. These facts make of the sales man a missionary charged with the responsibility of guiding prospects to a better mode of living or improving the prospect’s circumstances to the end that satisfaction or profits are increased.
2.10 The Nature and Role of Personality
A dynamic personality is one of the basic needs of all salesmen. Complete product knowledge is eminently desirable as are such other features as strict obedience to company instructions, long hours of work determination to keep up to date and accurate records on all prospects, and a mastery of selling fundamentals and techniques. It is quite true that these are examples of things the salesman should try to achieve, but they and other similar accomplishments are not enough. Their effectiveness is at the maximum point only when they are under the management of an individual who is a superior sales personality.
A pleasing personality by itself is not enough. A person’s thinking is faulty if he believes that just because he is popular and has an engaging personality, he can sell anything to anybody. The salesman who relies solely on his personality finds himself at a disadvantage the moment he competes with an all-around salesman.
Personality is a broad concept that cannot easily be defined. A sale personality may be thought of as the impression the prospects gets of the salesman. It is the salesman as he appeared to prospects. His sales personality is what the prospect likes or dislikes about the salesman as a human being, and, at the same time, it is why the salesman enjoys the approval or incurs the disapproval of prospects.
It is not easy to develop a more pleasing personality. Most individuals are reluctant to admit even to themselves that something about themselves is wrong and need changing. Because such an admission deflates the ego, it tends to be avoided or postponed. Once established, a habit violently opposes its own eradication. The complexity and far-reaching ramification of habit structure by their very nature operate so as to make change difficult.
Physical Factors – Visual
The physical image of the salesman is the first one to register on the prospect, and it is possible for it to make an impression on four of the prospect’s five senses. In order of impact, these are the senses of sight hearing, smell and touch. Because of the strength of the impression on the sense of sight, what the prospect sees must be considered carefully.
Importance of Appearance
Appearance is a big factor in personality, and, as such, it is a big factor in selling. The salesman is a person who possesses as an expert, and, in fact, must be one. He must appear to be both trustworthy and able; he must advise with authority. To do this, his appearance must helping instill confidence and respect in the prospect.
Factors that are controllable
Ability to sell isn’t limited to anyone physical type. Tall or short, fat or slim, blond or brunet, bald or bushy – each group has its share of outstanding salesmen. It is good that such physical differences are unimportant, for one is limited in what he can do about such matters as his build features or visions.
The first controllable factors mentioned here are designated as personal factor and include the shave, the cut and grooming of hair, the conditions of hands and nails, and appearance of the teeth.
Clothes constitute the second group of controllable factor. As too condition, the requirement is neatness. Clean shirt, pressed suit and shined shoes bear silent but powerful witness to the attention and care they receive. The generalized and advise may be ventured that extremes should be avoided.
Posture and bearing are subject to the salesman’s control. They should be positive and confident; sitting or standing, the salesman should display both respect for and assurance in himself. His physical manner should be of such vigor and power that it bespeaks authority and gets attention. Because postures and bearing are revealing, the salesman should see that they are working for and not against him.
The salesman’s walk is the fourth and last factor in this list. It should be an energetic and business like walk, with head erect and shoulders back.
Although smiling is a controllable matter, as are the two following topics, it is important enough to deserve separate consideration. A warm, flashing, contagious, genuinely sincere smile is of incalculable aid in selling.
The young salesman is strongly urged to practice his smile until it is without technical flaw. It must never seem sly, artificial, unnatural, or condescending. There should not be too much of it or too little. It should include eyes. Only through practice can he develop the pleasant facial expression that makes for good prospect response.
These are habits the salesman has acquired of which he is not conscious, yet they may distract the prospect’s attention or even annoy and irritate him. The salesman may tug at an ear lobe, fidget with his glasses, scratch his head, constantly adjust his tie and collar, or rub his hand over his face repeatedly in the same nervous gesture. He may tap with a pencil, crack his knuckles, chew gum, or even talk with food in his mouth.
The travel with such mannerism is that they make concentration harder for the prospect, and in more extreme cases create an impression that is definitely unfavorable. This, of course, hinders making the sale.
The salesman must be constantly on the alert to detect any such mannerism as these, to the end that he may have complete, conscious control over his physical self. If feasible, he should encourage some associate, his sales manager, or even some long established customer to observe him in action and to suggest desirable changes.
The daily grind of selling makes heavy demand of a salesman, causing him to expend much physical effort and to deplete his reserve of nervous energy. Because appearance depends in large measure on physical conditions, health should be guarded.
Physical factors – Non-visual
The prospect’s sense of hearing ranks second too his sense of sight in registering an impression on the salesman. In order for the prospect to enjoy favorable reception, the salesman’s voice should be pleasing, clear and well modulated, easy and warm. Its tone should be booth courteous and respectful.
Since effective expression is his goal, the salesman is obligated too eliminate vocal defects, and then to continue improvement until he has acquired vocal versatility. A monotone is lifeless and boring and will not persuade, and because it will not persuade, it cannot be tolerated.
2.11 Mental and Moral Characteristics
The physical salesman is an external part of the total sales personality and is usually the first to simulate prospect’s sense.
The internal salesman is made up of mental and moral characteristics to which the prospects also react. Twelve are considered here –
r Optimism r Initiatives
r Enthusiasm r Imagination
r Confidence r Mental Agility
r Sincerity r Control
r Determination r Courage
r Dependability r Maturity
2.12 Social Attributes
So far it has been described that the salesman has two things, a physical individual and an assortment of mental and moral characteristics. There is a final part, the social, which the prospect likes or dislikes. This treatment of the social salesman may seem to be brief, but the following here is that only for essential requirements remain to be covered:
r The ability to Converse intelligently and interestingly
r Friendly Nature
r Social Grace, and
BRIEF PROFILE OF THE COMPANY
Name, nature and activities:
R. B. Group of Companies Ltd. is one of the largest registered Limited Company in the electrical, electronics and automobiles sector in Bangladesh. For its comprehensive nature, company directly engage in the Import and Assembling works. Now it is fully engaged in importing, manufacturing and marketing in various kind of electrical, electronics & automobiles products (like Color Television, Refrigerator, Washing Machine, Microwave Woven, Air Conditioner, IPS, Voltage Stabilizer etc), Vehicle Items : Motorcycle, Generator, Pickup, Covered Van, CNG operated 3-wheeler, etc. Agricultural Items: Tractor, Power Tiller and Diesel Engine. Others items: Zinc Ingot, C.I. Sheet etc. .R.B. Group of Companies Ltd. works under the leadership of its Board of Directors and also accepts business guidance from the different renowned Consulting firms of home and abroad. Company’s authorized capital : TK. 2,50,00,00,000 (Two Hundred and Fifty Crore) which is equal to about US$ 43 million. Paid up capital TK. 26,20,00,000 (Twenty Six Crore and Twenty Lac) which is equal to about US$ 4.5 million.
Associates of R.B. Group
Walton Technologies Corporation Ltd.
R. B. Export and Import Corporation
Tricon Electronics Limited.
R.B. Dairy Complex Ltd.
R.B. (Pvt.) Limited
R. B. Steel
Brief History of the Company :
1977 Started trading business under name of firm “Rezvi & Brothers”.
1992 Started directly and indirectly import, production and marketing of C. I. Sheet and its related materials.
1993 Established R. B. Dairy Complex Ltd.
1995 Started Electrical & Electronics Business.
1998 Establish Tricon Electronics Ltd. and Started Production of Television.
2001 Registration of R. B. Group of Companies Ltd. & Expanded Business in Electrical, Electronics & Automobiles Sector.
ablish Production Units for Color Television, Generator, Air Conditioner, Refrigerator & Freezer, Washing Machine, Microwave oven, Voltage Stabilizer, IPS and Motorcycle.
Signed a deed of Collaboration with HUNG JIN CO., S. Korea.
Sales & Service Offices around the country
Head Office : Jiban Bima Bhaban (3rd floor), 10, Dilkusha C/A, Dhaka, Bangladesh.Tel:88-02-9571634, 9571635, 9571636, 9558535, Fax : 88-02-9572057, Email : email@example.com, firstname.lastname@example.org. email@example.com Website :
Main Sales office : Jiban Bima Bhaban (3rd floor), 10, Dilkusha C/A, Dhaka, Bangladesh.Tel:88-02-9571634, 9571635, 9571636, 9558535,
Show Room : 11, B.B. National Stadium Market, Dhaka, Tel : 88-02-9557450, 9571175 Fax No. 88-02-9551577, Email : firstname.lastname@example.org.
Vehicle Division : 37/2, Purana Palton (New road) Dhaka-1000, Tel. 88-02-7113216, 0171-987717, 0171-103232,
Chittagong Office : 38 Asadgonj (1st Floor), Chittagong, Tel. 88-031-611855, 634771 Fax : 88-02-610980.
Tangail Office : Adalat Road, Tangail-1900, Telephone : 88-0921-53201 Fax : 88-0921-54826
Rajshahi Office : 201/A, Women College Road, Kadirgonj, Rajshahi, Mob : 0171-103215
Bogra Office : Nurani Moor, Bogra, Tel : 88-051-65931, 0171-345476, 0171-385017
Jessore Office : Ashraf Bhaban, Bockchar, Khulna Road, Jessore. Tel : 88-0421-62124, 0171-345575.
Sylhet Office : 150/1, Talukder House, Noweb Road, Sylhet. Tel : 0171-161833, 0171-103236.
Barisal Office : Talukder Bhaban, C & B Road, Barisal, Tel : 88-0431-61478, 0171-380105.
Rangpur Office : 166/1, College Road, Rangpur, Tel : 88-0521-67945, 0171-385017, 011-023992
Mymensingh Office : 4/KA/7, Kali Shankar Guha Road, Panditbari, Mymensingh, Tel. 0171-385087.
Comilla Office : 249/278, Shaheed Shamsul Haque Road, Jhawtola, Comilla, Tel : 0171-281458.
Employees and workers :
Company has 300 staffs all over the country. And 100 of workers work in our Factory and many daily labor work everyday in their Factory and different offices. Their Factory Address : Plot No. B-16, BSCIC Industrial Estate, Kanchpure, Narayangonj, Bangladesh.
|Name of Director||Achieved Position||Nationality.|
|S. M. Nazrul Islam||Chairman||Bangladeshi|
|S. M. Nurul Alam Rezvi||Managing Director||Bangladeshi|
|S. M. Shamsul Alam||Director||Bangladeshi|
|S. M. Ashraful Alam||Director||Bangladeshi|
|S. M. Mahbubul Alam||Director||Bangladeshi|
|S. M. Rezaul Alam||Director||Bangladeshi|
Board of Directors
SALES ORGANIZATION :
R. B. Group has Sales, Service and Production organization comprising of 280 Executives. It has own sales and service centers in all the major cities of Bangladesh. It has a sales network of 175 dealers in the major and minor towns all over the Country.
R. B. Group has 25 Sales and Service Centers and more than 45 Engineers and Technicians are engaged to provide prompt after-sales-service at different parts of the country. They render periodical services for WALTON product as per the need of the equipment.
R. B. GROUP OF COMPANIES LIMITED : AT A GLANCE
a) Started Journey in Bangladesh : 1977
b) Slogan : “Let’s Get Real”
c) Seven Values : Respect for people
Entertainment, Space & Comfort
d) Head Office :Jiban Bima Bhaban (3rd floor), 10, Dilkusha C/A, Dhaka, Bangladesh.Tel:88-02-9571634, 9571635, 9571636, 9558535,
e) Production Unit : Plot No B-16, BSCIC Industrial Estate, Kanchpure, Narayangonj, Bangladesh.
f) Total Manpower : More than 400
g) Total Division : 06
h) Total No. of Distributor : 150
i) Website : www.waltonasia.com
SWOT Analysis of R.B. GROUP OF COMPANIES LTD.
survey and findins of the reort
In this part of the report my survey and its findings has been described of Walton product. After the survey I have found that the performances of Walton Marketing Executives are not so effective and satisfactory in the Dhaka Zone. Walton should be more initiative and build up prompt and effective strategies to increase their product sale in this part of the country.
The details of Dealers and Salesmen opinion about the performance of Marketing Executives are given gradually in this part with the findings and recommendation. Hope this part will be fruitful for R.B. Group of Companies Ltd.
4.2 EXISTING CUSTOMERS OF AVENTIS PRODUCT
The marketing of electronic products is direct marketing.
Customers of Walton are:
r Higher middle class people
r Middle class people
r Lower middle class people
4.3 Facility of walton PRODUCTS:
Walton provides 5 years warranty of picture tube, 1 year of spare parts and 5 years after sales service for color TV, 5 years of compressor, 1 year of spare parts and 5 years after sales service for Refrigerator and the same facilities for all its products.
Walton gives credit opportunity to the distributors. This credit opportunity is only given up on them whose have goodwill and amity with the company. But for this, the dealers must have the permission from the higher management.
4.5 IDENTIFY ESSENTIAL ATTRIBUTES REQUIRED FOR THE MARKETING AND DISTRIBUTION OF WALTON PRODUCTS
4.5.1 Timely delivery
Timely delivery is one of the most important matters in the case of the distribution of any products. When a dealer gives an order, the marketing executive makes him confirmed that he would get the delivery of product in the scheduled time. In my survey I find that some of the dealers complain that they sometimes do not get the delivery of Walton product in time.
Table : Dealers’ opinion in delivering Walton products
|Particulars||Total respondents||No of respondents||Percentage|
|Always in time delivery||40||12||30.0|
|Sometimes delayed delivery||15||37.5|
|Sometimes in time delivery||8||20.0|
|Always delayed delivery||5||12.5|
Figure : Dealers’ opinion in delivering Walton products
The Marketing Executives collect orders from the dealers. A Marketing Executive works in a specific area. He supplies the required products to the dealers. If the products are not supplied properly and any problem is created in this regard, the Marketing Executives themselves have to deal it with the dealers. As a result the dealers will not be inclined to receive the products of Walton and the target of turnover will not be fulfilled. So they should be motivated for in time delivery.
4.6 POSITION OF THE CUSTOMER SERVICE OF WALTON:
Most of my surveyed dealers, both the wholesalers and retailers, said that the customer service of Walton product is good. However their overall opinion I have presented in the below table:
Table-1: The position of customer service of Walton
|Particulars||Total no of Respondent||No of Respondent||Percentage|
From my survey I have found that most of the dealers suggested for prompt service. Besides they also suggested service from respective show rooms and home service specially for Refrigerator for increasing sales volume of Walton products. The reason is that most of the competitor companies are now providing home service as well as service from show rooms without any delay. The customers have good faith in those companies. So to face the competition in the market Walton should adopt the policy of providing those facilities to the customers.
4.7 PER week SALES OF walton PRODUCT :
In the survey we also tried to find out the per week sales of Walton product. In this survey we have conducted on our 40 dealers. After the survey we found that only 31 to 40% of Walton products are sold per week frequently out of total sales. However their overall opinion I have presented in the below table:
|Percentage Range||0-10%||11-20%||21– 30%||31 — 40%||41—50%||Above 50%|
The above table indicates that the per week sales of Walton products are somewhat satisfactory. But this percentage should be increased by effective and efficient marketing.
After the survey I have also found that only 0 to 10% of Walton products are sold per week frequently out of total sales. However their overall opinion I have presented in the following table:
Table 2:Per week sales of Walton product out of total sales(In case of Refrigerator
|Percentage Range||0-10%||11-20%||21– 30%||31 — 40%||41—50%||Above 50%|
The above table indicates that the per week sales of Walton products in cage of Refrigerator are not satisfactory at all. So this percentage should be increased by effective and efficient marketing. This is not an efficient sales force performance. In fact the performance of Walton sales force should be more effective and prompt.
4.8 REASONS IDENTIFIED for low sales performance:
In any organization the dealers play vital role, because it is they who bring goods to the customers. Then they collect money and deposit it to the organization accounts. So the future of the company depends on their efficiency and devotion to their work. Therefore the company should give attention whether they are satisfied with their work or should look after about their problems that they faces in doing their jobs properly.
In the survey we found the following problems or obstacles that the dealers face in performing their duties:
Under rate: Under rate of some product crate great problem of dealers to perform their duties effectively. During underrating of any product, the product sales in Dhaka B.B Stadium Market lower price than the company’s actual price, therefore the customers do not prefer to purchase the product from other show rooms at the company’s actual price. As a result they purchase the products from stadium market at lower price. But it is the duty of the dealers to fulfill their company target of that product with the actual company’s rate which is very much difficult for them. However the dealers try to fulfill their target. They often sell the product to the customers with stadium market price and covers the makeup price by selling the product of other companies.
Waiting for service: It obstructs the dealers to provide service to the customers timely because the company does not provide quick service. So the customers have to wait most often for along time. Consequently it effect fall upon the company. The low rate of mobile electricians’ visit is also responsible for waiting too much. Besides most of the customers want to get service from the show room from which they have purchased the product. But Walton does not provide service from respective show rooms.
Lack of proper monitoring: Usually the supervisor or upper management of the sales forces is responsible to monitor the performance of the dealers activities. But unfortunately they don’t perform this job properly. Therefore the monitoring of Walton is very weak. Because of weak monitoring, if any problem arises, the dealers have to solve the problems by themselves.
High Rate of Product: The price of some of Walton product is very much high compare to other competitive companies’ product. In our socio-economic situation consumers always prefer to buy low price product. Therefore the dealers face obstacles in selling products to the customers. Besides some customers also prefer low price product of other company than that of Walton.
4.9. CUSTOMERS SATISFACTION LEVEL ABOUT PRICE OF WALTON
In the survey among 40 dealers at Dhaka Zone, we found that most of the respondent opined that the price of Walton products is not near to the customers ability to purchase. Because the competitor companies are now charging less price than Walton. However their overall opinion we have presented in the below table:
|The price is near to customers’ ability to purchase||40||12||28|
Table: Customer satisfaction level about the price of Walton products.
Comments: The above table indicates that the price of Walton product is somewhat higher compared to that of competitor companies. If same products are sold at less price, the customers will rush to those price. Therefore, the authority should be concerned about price of their products.
4.10. The level of satisfaction of dealers
|Particulars||Total Respondents||No. of Respondent|
The chart given bellow shows that among the 40 dealers, none of them responded on Highly satisfactory level, 6 responded on moderate satisfactory level, 20 respondents are satisfied and 14 respondents are not satisfied at all.
Figure 05: The Level of Satisfaction of the Dealers on the Motivation given by the company.
From my dealers interview we came to know that the dealers are not enough satisfied with the motivation they get. They mostly want credit facilities, transport facilities. Most of the dealers claimed more commission. Some of them asked for technical support from the company to provide customer service from their own show rooms. Even there are few dealers who provide technical support from their own sake to attract customer. From marketing point of view, we know that the dealers as well as salesmen are the ambassador of the product. So it is very important to satisfy and motivate these persons. The company can motivate them by giving occasional gift, bonus, reward for volume of sales and so on . The company may organize annual conference with all dealers where they can discuss about the well being of the company as well as the dealers.
4.11. ADVERTISING EFFECTIVENESS OF WALTON
In the survey we have taken the dealers opinions about the advertising effectiveness of Walton. Most of the respondent said that the existing advertisement of this company is not sufficient to face the competition. Specially the BTV advertisement is below standard. Moreover the number of Billboard, Signboard of Walton is very low in suburbs. However their overall opinion I have presented in the below table:
Table: Advertising effectiveness level of Walton
|Whether the advertising of Walton is enough to face competition.||40||11||29|
The chart given bellow shows that among the 40 respondents, 72.5% of them gave their opinion that the existing advertisement of Walton is not enough effective to face the competition. Only 27.5% respondents said that the present advertisement is okay. Comments:
It is my opinion that Walton should take some effective and efficient promotional activities. Advertising is very important to run a product for it brings the message of the products to the customers. So Walton should advertise in both electronic and press media. Newspaper advertisement on special days, sponsorship in cricket and such tournaments, advertisement on traffic islands, advertisement on the surface of over bridges, wall advertisement, advertisement at different junctions etc. should be introduced immediately. The Double- Decker car advertisement has been proved effective from my survey. So the number of car advertisement should be increased. Besides different attractive may be offered with Walton products as sales promotion tools.
4.12. THE POSITION OF WALTON IN THE MARKET
In the survey on the dealers of Walton, we have taken the opinion of 40 respondents about the market position of Walton. Most of the respondents said that Walton is in the third or fourth position in the market. Only a few of them said that Walton is in the first position. However their overall opinion we have presented in the below table:
Table: Dealers opinion about the market position of Walton
|Particulars||Total Respondents||No. of Respondents||Percentage|
According to the opinion of most of the dealers, it is assumed that Walton is in the third or fourth position in the market. So in order to exist in the market for a long time and to acquire the first position, Walton should take some pragmatic steps. Quality products have to be introduced, customer services has to be very prompt, good relation should be maintained with the dealers, continuous monitoring system should be initiated, “made in” should be inscribed on the products, price should be same everywhere, one dealer should be employed at a particular region, effective promotional plan must be taken.
PROBELEMS & RECOMMENDATIONS
Frequent Monitoring the Dealers: Continuous monitoring system is very important to observe the market. Therefore Marketing Executives visit to the distributors should be more frequent like other competitor companies
To Increase good relationship: Distributors are the main sources for the sales of electronic products. So my recommendation is that, the company should extend and increase good relationship with all dealers and salesmen.
Price Stability: Presently because of “Under rate” process the distributors are facing different problems. As “Under rate” of product price creates a great problem in smooth selling, therefore price stability of all product is very much necessary.
Availability of marketing executives: In present competitive market situation most of the competitive companies are engaging a big marketing executives to capture the market. In compare with that Walton marketing executives are not sufficient to cover all of the distributors. So marketing executives availability should be ensured.
Low price of products: At present the price of Walton products is relatively high in comparing to other competitor companies product. But to capture the market and reach their product to all kind of customers, my recommendation is that, Walton should reduce somewhat their product price.
6. Standard Advertisement:
Advertisement plays a vital role to run any business well. But in my survey, we have found hat the TV advertisement of Walton is not satisfactory at all. So the company should pay more attention to advertising.
7. Quality of the products:
From my survey we came to know that the of some products of Walton is very low. Some products create disturb even two or three months after selling. If Walton wants to exist in the market for long time and face the competition, it must concentrate on better quality products.
Continuous customer contact and monitoring is essential.
Integrated Marketing Communication (IMC) must be used.
Customer attraction and retention policy should be modified.
To identify new area where the product is not available.
At last I want to say that the company should practice Total quality management (TQM) properly.
Walton is one of the leading companies, focusing on the area of electronics in Bangladesh. It is dedicated to creating and delivering products of unquestionable quality that enable people to enjoy more entertainment and comfort. In this spirit, Walton encourages its employees to ensure quality products and service. No doubt in Bangladesh Walton is one of the top four. Walton has also endeavored to strengthen its Sales in all over the country. They are optimistic about their perpetual growth and success.
But from my survey we came to the conclusion that the customer service given by the company is not effective and well organized. Because of some problems, Walton can not cope up with their competitors. In this competitive market many competitor company provides better service than Walton. They provide prompt service, service the show rooms and even home service. They also keep a good relationship with all dealers and salespersons. They give the distributors bonus, occasional gifts and so on. In this regard the Sales of Walton are somewhat behind them. Walton Management and Marketing Executives should be more skilled and active. However if the management of Walton takes prompt and imitative steps to solve the discussed problems then definitely Walton can reach to the number one position in Dhaka Zone.
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Printed Documents from Market Research of R.B. Group of Companies Ltd.
Now days, everyone likes to have more comfort in life. As progress relentlessly towards this it has been realized that this is the time to pay increasing attention to the subject of human comfort and entertainment. That’s why there is a huge growing demand of fashionable goods in this world and lots of companies are paying their attention in this regard.
Walton Technologies Corporation is one of the sister concerns of R.B. Group of companies Ltd. is now one of the leading companies in Bangladesh. It holds its long cherished desire to be the Number One Company in Bangladesh both in volume and turnover. which inspired it to go for expansion of its market internally to establish as a high quality achiever.
In this connection Walton is doing pretty good in this highly competitive electronics market. And there is a tremendous role of the dealers to promote the products through effective salesmanship to the customers. They are of vital importance for every company because they make a huge contribution in marketing and promoting of electronics products. So the more effective and efficient the sale forces are, the more profit they can make for their own as well as the company. This research program is undertaken especially to judge the market position of Walton.
In spite of its sincere efforts, excellent image and credibility, the company is pressurized by the growing and aggressive competition in the industry. Faced with increasing competition in the market and huge sales target Walton realized the fact that there is no way but to be more aggressive in marketing. Though happy with the existing marketing system yet Walton management wants to keep their eyes open for unseen days and wants to develop their existing marketing system to cope with changing environment.Therefore Walton management has assigned to prepare a survey on The Market Position Dhaka Zone of the country. Presently Walton. is marketing its products through its own sales forces and dealers all over the country.
Therefore this paper on “The Market Position of Walton.” tries to explore the field forces sale performance, quality of the products, dealers satisfaction, advertising effectiveness, customer service, transportation, communication and so on. The survey identified problems in the overall marketing. This survey has been conducted on 40 dealers. Since the sample size is sufficient enough to get the exact situation on the market position at Dhaka Zone, we hope that this effort will be helpful to the Walton management in future planning and thus achieving its goals.
Among the finding problems, delivery of the product to the distributors in time is one of them.37.5% respondents said that the delivery of products is sometimes delayed and only 20% of them said on always in time delivery. This gap of delivery occurs for various reasons like unavailability of the products.
We found that the percentage of Walton products sale is between 31 % -40%(Per week sales). This sales record of Walton product is high in comparing with other competitor companies. But in case of Refrigerator, this rate is only 0%-10% which must be increased very soon. In my survey, 45% respondents said that the customer service of Walton is good and 27.5% of them said satisfactory. Only 17.5% respondents said that Walton customer service is very good and no one said it excellent. is poor.70% respondents said that the price is not Customers satisfaction level about the price of Walton products near to customers ability to purchase but only 30% of them said that it is near to customers hand. In my survey among 40 dealers, 20 respondents are satisfied, 14 are not satisfied and none is highly satisfied to the motivation given by the company. In the survey 72.5% respondents said that the advertising of Walton is not enough effective to face the competition while only 27.5% said that it is enough. According to the opinion of 32.5% respondents, Walton is in the Fourth position whereas 30% respondents said it is the Third.
After the survey or research the reasons that we found for low sales performance of Walton sales performance are , Under rate, waiting for service, lack of proper monitoring, and high rate of product. All these reasons have been discussed in the chapter four of this report.
Also a brief recommendation of my survey findings has been presented for further consideration of Walton management. We hope my effort will be highly appreciated by the Walton management and they will consider the problems that I have mentioned in this report.