ASIA PACIFIC

ELECTRICAL LTD
Case Discussion
Group - 6
Corporate, Marketing & Sales
Strategies
MARKETING STRATEGIES
Focus on the most profitable products like M.C.B.
Provide dealers with incentives
Create separate sales cadre of sales officers and executives for M.C.B.s
Focus on the Non Metro cities
Promote products through seminars, conferences and presentations
Reduce margins of dealers such that it can be invested in advertising and promotions
Focus on the R&D of products such as to make them cost effective and competitive
Not only to look for tenders but should also target households and industries
SALES STRATEGIES
Motivate the sales team such as to make them more
competitive
More incentives should be given to the dealers for Non-MCB
product
Sales staff in Sothern region was busy in handling customer
complaints, hence lost sales therefore separate tem should be
set for this
CORPORATE STRATEGIES
Integrate all the departments
Proper communication between
all the departments.
Break-Down or Work-Load Method
BREAKDOWN METHOD
New Work Force Required- 200/1.9= 105
Turnover Forecast - Rs. 200 crore
Average sales per person- 85.6/45= 1.9crore
Sales Team- 45
Present Turnover- Rs. 85.6 crores
WORKLOAD METHOD
Suppose out of 10000 sales 62% comes from MCBs & 38% comes from non MCBs.
Account for MCBs = 6200
Accounts for non-MCBs = 3800
Suppose, MCBs required calls = 310 (5% of 6200)
non-MCBs required calls = 38 (1% of 3800)
So Company need a sales force that make (19,22,000 + 1,44,400) = 20,66,400
If average full time rep can make 4000 calls a year company needs
= 20,66,400 / 4000
= 517 people

Breakdown or Workload method
Use Breakdown Method:
Provide complete information about the total market data and
break down the data into areas of interest to the firm.
Helps in determining the actual requirement in the area of
interest to firm.
Helps in determining the actual health of the industry or
product which is of interest to the firm.
Thus it helps in analyzing the demand properly and thus help in
determining the amount of salesman required.
Market or Product Focussed
Market Focused
Looks outside the company for
understanding the market and
making strategic decisions
accordingly.
Understanding your customer
and competitors.
Analyzing these factors to make
a better product.
Analyzing the forces of market
and acting accordingly.

Looks at what you can offer
rather than what customers
want .
You base your product
decision based on your own
capabilities.
Business strategy is focused
on making your own product
better than the rest .
Market Focussed Product Focussed
APEL
Current focus is on product .
Largest manufacturer of MCB so want to just make the product
better.
Should rather try and focus on other products related one
which are demanded in the market .
Should try and change the approach to that of a Market
focused company to a product focused one .
If you want to become market-focused, the company leadership must make this the
strategic intent of the business, with the appropriate resources, priority and
attention given. Being market-focused means developing deep intelligence about
the marketplace, and this is a competency that must be developed across the
organization in order for it to succeed.
It will make APEL realize why their sales are so disproportionate irrespective of the
blame game played by ED and the different regional managers.
With time in the market, it will be impossible for APEL by just focusing on the type of
product, its time they understand how the markets are responding , what the
dealers want, what the competitors are and the demands of the customers.
Focusing on the market is the future of your business. Whichever company
commits to understanding the customers, the competitors and the forces in the
marketplace will be in the best position to capitalize on opportunities and establish
a market-leadership position.
State Wise Territories
Equal Demand Potential
Deployment of Sales Engineer
State Wise Territories
Convenient and less cost to
administrator
Easy to serve the major
customer like state
electricity boards and state
government departments
Different territory potential
leads to uneven sales and
pressure on sales executives.
Reach to the region becomes
uneven with the potential and
natural factors
Minimization of travel cost and
travel tome becomes difficult
in bigger states.
Merits De-Merits
EQUAL DEMAND POTENTIAL
TERRITORIES
More structures; more uniformity
Equal demand potential areas
would lead to lesser sense of
neglect to any one particular
area
Strong distributer and dealer
network in competition prone
areas
Problems of poor TA DA can be
solved
Better sales staff motivation
Careful and higher level of
planning is required
Tax structure would be
different for all the territories,
leading to complication
Merits De-Merits
Well Educated
and Trained
Proper Product
Knowledge
Good
Communication
Skills
Knowledge
About The
Company
Knowledge
About Its
Customer
Knowledge
About Its
Competitors
Negotiation
Skills
Retail
Communication
Expertise in Sales Force in the Changing
Environment
Changes In The Compensation Structure
Find out what motivates
Ask your sales team what they want
Experiment with different bonuses and prizes
Build winning teams
Creating sales teams in which there is an incentive for each member to support, mentor and encourage
the other members
Get the whole company behind the sale
Announce contests and campaigns to the whole firm.
Encourage supporting departments such as customer service, engineering and marketing to be supportive
of the sales staffs efforts.
Make commission a driving force
To get the results you want, shake up your commission structure.
Keep it frequent.
Changes In The Compensation Structure
Monetary Compensation Most Common and Highly
Motivating compensation for the employees.
Family Trips, Comp-Offs or Free lunch and Dinner
coupons.
Town Hall Meeting Awards.
Publishing about the employee in the monthly newsletter.
Also provide some extra budget for client relationship
building.
More Frequent evaluation and prompt disclosure of their
results.
Categorical Compensation - 5 different grades.
DEALER MARGINS - MCB
MCBs was a well established product with high brand equity.
So, the dealer margin could be diverted and spent in other
areas like ads, merchandising etc
The Dealer margin should not be reduced so drastically i.e.
from 15% to 10%
DEALER COMMUNICATION
The Dealer margin should not be reduced so drastically i.e.
from 15% to 10% because the case advocates a strong dealer
network for better distribution, which is not possible without
crediting the dealers adequately.
Advertising and Brand Building will boost sales. So, there will
not be any major impact on the inflows of the dealers as the
total commission will approximately be same.
Also, even if the dealer margin is reduced, it can be
compensated with Target based incentives - free trip or gift,
which would not only increase their motivational levels but also
enhance healthy competition.
SALES FORCE OEM Business
Only 15% of business comes from OEMs
Sales to this segment does not need a separate sales
force
Instead there should be few specialist sales executives
who focus on tracking OEMs needs and cater to them
Sales engineers will not work exclusively for OEM
business sales, but they will support the sales executives
mentioned above
SALES FORCE - Dealer Network
Bulk of sales was driven by dealer network
85%
There should be a single sales force for the company
Most of the executives should target dealer networks and their
needs
There should be common resources for all sales executives
Targets for each executives should be set based on region/type
of business, i.e. OEM vs Dealer Network

THANK
YOU
Group - 6