Sales Force Management of a Glass Industry

I.

Industry Overview: Float Glass Industry in India

India has become an attractive destination for investment in Glass Industry since it contributes around (6 %) one sixteenth of the worlds total Gross Domestic Product. Float glass Industry in India is relatively new and the first glass plant was established 15 years back. During this time India has come out as an important player in float glass production and today there are six float lines in operation and five new lines are at different stages of completion. In 1991, when Indian Economy was liberalized, there was rapid increase in constructional activities has increased the demand for Float glass in the country. India had been using sheet and lower float glass through ages and until 1992, only sheet glass has been manufactured. In 1993, the first glass plant was set. Since then new varieties of float and sheet glass capacities has been added. Totally, the flat glass industry grew by about 90% between 2003 and 2009, resulting in a compound annual growth rate of 11%. The demand for flat glass has been increased at an average rate of 12 percent to 15 percent. Eighty three percent of the glass produced is used in the construction industry, 15 percent in the automotive industry and 2 percent in the miscellaneous industries such as furniture, interior house designs etc. The construction and the automotive industries are the most important consuming sectors most of them are constructed in shopping malls, Multi national companies, Special Economic Zones. Nowadays builders are opting more glass in the construction due to climate, safety and energy conservations. The glass revolution is also taking place in the automotive industry which predicted a growth more than 15% till 2012. The Major producers of Glass industry are: Asahi India Glass Ltd. Saint-Gobain Glass India Ltd. Gujarat Guardian Ltd. Hindustan national Glass Company Gold plus Glass Ltd.

Company Profile: Asahi India Glass Ltd

AIS is one of the Indias largest integrated glass company manufacturing a wide range of International quality automotive safety glass, float glass, architectural glass and glass products. It is jointly promoted by the Labroo family, Asahi Glass Co Ltd, Japan and Maruti Suzuki India Ltd thereby holding a strategic position in the Indian Glass industry. AIS is committed to maintain the highest standards of corporate governance and shareholder responsibility.
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The equity shares of the company are also listed in the Bombay Stock Exchange and National Stock Exchange in India. All the actions of AIS are driven by the following guidelines: Creation of value for Shareholders Customer Satisfaction Respect for Environment Use of Facts Continuous Improvement Strengthening of Systems Up gradation of Human Potential through education and training Social Consciousness

AIS have the following 3 Strategic Business Unit (SBUs):

Automotive Glass Unit AIS Auto Glass Float Glass Unit AIS Float Glass AIS Glass Solutions Ltd AIS Glass Solutions
Customer Segment Identification

II.

The practice of dividing a customer base into groups of individuals, those are related in specific ways such as spending habits, age, gender, interests etc. With the help of segmentation, AIS is able to target the groups effectively and use the marketing resources to the best use. AIS products are sold to many of its Customer where most of them are B2B transactions where the company sells its products to other companies and industries. AIS Auto glass has been selling to the Indian Automotive glass industry and has been the first choice for most of the automotive suppliers. Some of the Customers include:

AIS Auto Glass : Share of Business Customer Maruti Suzuki India Ltd. International Cars and Motors SOB (%) 100 100

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Reva Motors Honda Motors Ford India Toyota Kirloskar Motors Fiat India Hyundai Motors General Motors Volvo India Mahindra & Mahindra TATA Motors Piaggio Hindustan Motors Eicher Motors Swaraj Mazda Force Motors

100 100 99 99 83 72 67 57 52 24 22 17 13 5 1

The AIS Float Glass has been widely used for Window Glazing, Curtain walls, Partition walls, doors, entrance, shop fronts, decorations, shopping malls, mirrors, Automobile Safety glass, special Applications. Because of the diversified product portfolio, AIS has many clients such as:

Automotive Safety Glass Manufacturers Processors Dealers and Retailers Architects Interior Decorators Builders

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Aluminum Fabricators Carpenters Furniture Manufacturers Household Consumers

AIS have implemented new strategies to target their products to Premium end customers and the corporate. Hence the demands for these glasses are actually pretty low from the House Hold Consumers side.
III. Sales process of the Company

If we only knew the right sales method for selling glasses, it would really be easy by just applying the following steps. Everyone would make money and the glass business would actually flourish. Sadly, it is not that simple. There is no one single sales process that fits all customer situations. The most common problems faced by the salespeople is that they dont follow the correct sales process but they are applying sales processes in a way that is not consistent to the way a Glass customer buys. Knowing the right sales process for your products, markets and customers is an imperative question not only for sales people but also general managers, sales managers and owners of the AIS Firm. The right sales process helps managers understand all the steps that a sales person goes through to get a sale. This can be a big help in planning and managing a glass business.

The Four Basic Sales Processes :

We see four basic sales processes that a glass manufacturing Company sales people deploy to sell glass such as Auto Glass and Float Glass. The four approaches used by sales people are listed below;

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Relationship Selling: The most common sales process in the Glass industry is relationship selling. It is where sales people have deep knowledge of their accounts, gain repeat business and have developed a strong and long- term association with their customer contacts. It also helps in generating new business and these are the persons who have confidence and can lead you to other key decision makers in your accounts. One of the most powerful sales tool to get appointments and to build instant credibility is using known Reference.

Transaction Selling Here the salesperson sells mostly undifferentiated and predetermined glass products such as Laminated windshields, Silver printed Defrogger glass, Solar control glass etc. Sales people who are good at using this process must have good prospecting and closing skills as well as high call rates. The value for transactional customer is always price, turnaround and quality. Business customers expect sales people to give accurate quotes and timely product information. Sales people who are well organized, target their customers effectively and decision makers, manage well their time and maintain high sales activity rates.

Contract Selling The 3rd common selling process in Glass industry is contract selling. This approach strongly relies on the Purchasing departments where they tend to be commodity buyers. Many large companies require their end users of Glass to work through or with their purchasing departments. The theory is that professional buyers are best trained and most knowledgeable on how to manage printing requirements and work with these Glass Companies. Through a combination of building relationships, knowing customer requirements and working through account establishment, a very large order can be obtained.

New and Emerging Product Selling This is the most successful and sustainable approach for selling new and complex Auto Glass, Float Glass and services. This is the most difficult sales process to master because this approach is requirements in situations where salespeople are selling new and emerging new products and services with integrated marketing campaigns, where customers need to be educated and informed. Selling must be made to multiple decision makers Learning about the customer's business and problems, making sales

representation are some of the key steps in this selling process

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IV.

Sales Force Organization

An Effective and strong sales force is a vital asset to the organization. It would result in smooth understanding in the sales target. The structure and the organization of the sales force depends on various factors. They recognize that the sales organization must accomplish both quantitative and qualitative personal selling objectives. The sales executive looks upon the company both with respect to here and now and to the future. The sales organization is not an end in itself but rather the medium to reach the end by the individuals. With the right organization structure, it provides the framework to deliver upon the sales strategy including clearly defined customer segments and clear and compelling strategic sales message. Interaction with customer segments is a must to determine if your sales organization has the correct go-to-market structure to maximize interaction with each segments and include activities that are essential for the success. We also need to know what size the sales organization should be to achieve maximum coverage and market share. For Glass manufacturing company, a Product Operating Specialization is used because a variety of complex products such as Float glass, automotive are being transacted in B2B segments. It is commonly used when management wants to use sales executives to sell products who are specialized in those product categories. Each line gets more executive attention because one person is responsible for a particular group. Sometimes the product sales managers have no staff assistants in advertising, sales promotion or other specialized marketing activities.

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V.

Sales Executive Requirements

Summary Experience: 3 - 5 Years Location: Ahmedabad, Chennai, Mumbai, Rajkot Compensation: Rupees 1,75,000 - 3,00,000 Education: UG - Any Graduate - Any Specialization, Graduation Not Required PG - Any PG Course - Any Specialization, Post Graduation Not Required Industry Type: Glass Role: Sales Exec./Officer Functional Area: Sales, BD Desired Candidate Profile 4-5 years in selling Tiles, ceramic, cement, plywood, ceiling material, sanitary, bath, glass.ly Sound experience of glass industry Excellent communication skills, client relationship management

Job Description The role will involve sales and marketing of Float glass and Automotive industry glass. The role will cover business development, customer handling, key account management to understand the customer requirement and manage proposals accordingly. A track record of exposure and understanding of the product domain, and someone specifically with a Automotive glass background will be an asset. The customer base for this product is in Ahemdebad and Chennai and will cover all segments / products that is inclusive in the Automotive industry. Current exposure would also have included dealing with auto OEMs, consulting engineers + architects, vehicle modification specialists etc. Company Profile Its a leading and reputed glass manufacturing company.

Contact Details Company Name: AIS India Ltd. Website: www.asahiindia.com Address: C - 203/B, Fortune 2000, Bandra- Kurla Complex, Bandra (East) Mumbai - 400051 Maharashtra - India Email Address: N/A Phone: 30620101 30620107 30620113

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VI.

Motivating programs for Sales Executive:

In order to boost and motivate the sales representatives to increase the sales of the organization, below are some of the techniques to develop a highly charged motivated work team. Engage them in setting goals: Excellent managers have realized that involving the team members in the decision making and goal setting have made them setting up SMART Goals. Sales managers give their team an over view an overview of the big picture and what the company needs to achieve. Communicate: Effective sales managers need to provide information to the sales people. Communication must be clear and concise. Employees want to know where they stand and they also want to know how their manager view their performance and give them direction and feedback on a regular basis. Unfortunately many managers are hesitant to give only negative performance because they are afraid whether any possible conflict could arise. Identify their effort and give recognition: It is very necessary that managers should praise and recognize their effort. Praising an employee is not as difficult as most of the managers feel. Whenever the salespeople did an outstanding job, it is the duty of the sales manager to praise the employees performance as soon as they become aware of it. The general rule of thumb is to praise them in public and lecture in private. However not all employees want such kind of recognition in front of their peers. Lead by Example: The last point is one of the most important. YOU must set an example if you want a highly motivated team. The managers should demonstrate eagerness, energy, team support, reliability and obligation to your organization. They need to treat their employees with respect and dignity. Encourage them to participate and get involved. Give them feedback, listen to their comments and provide positive reinforcement with your team members.

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Bibliography 1. http://www.asahiindia.com/ 2. http://www.intellectives.com/assets/Selling_glass_Requires_the_Right_Sales_Process.pdf 3. http://www.jobsbyref.com/Territory-Manager--Sales--Marketing-Cement--Paint--Glass-Industry-Ambala/job/255475 4. http://www.scribd.com/doc/44538359/Sales-Organization 5. http://www.businessballs.com/motivation.htm

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