Sales Management MKT-566-MBOL1
iFetch Sales Management Plan
Company’s background
iFetch is a family startup company, launched in Austin, Canada in 2013. The firm’s motto, mentioned on the web site states “IT’S PLAYTIME”, which perfectly corresponds to the main product it creates: a play tool for dogs, which automatically throws fetch, and a set of extra balls to be played. Except for the fun for home pets, the firm delivers a bunch of free hours for the dog owners. The firm was launched as an online store, which is why it is named as iFetch (goifetch.ca/).
Clearly, that it is oriented on the customers, who have or are planning to have a dog at home. Moreover, since the only way to purchase the product is via online ordering, target customers must have an access to the Internet and a credit card to submit an order. Nevertheless, the website of the company is very simple in use and well designed; besides the main order form, there is a special tab with training tips provided. The site is available in different countries, as well as delivery of the iFetch products (goifetch.ca/).
For now, the firm sells devices of three types: iFetch fenzy, iFetch and iFetch too, and additionally the client can order a set of 1.5 inch or 2.5 inch balls, specifically designed by the company. The price differs from $69.99 to $199.99 and $349.99 for a tool respectfully. Any set of unique balls costs $14.99. Since the average price of the products is not very high, it makes them affordable for different kinds of clients (goifetch.ca/shop-4/).
Sales marketing plan
Analysis of the Market Opportunities
In the modern economy only those companies succeed, which place a customer as a center of their strategy. iFetch company is 100% customer oriented, as it aims at delivering happiness to the client’s pets and at the same time provide its clients with more free time. This shows that the firm understands its customers needs and wishes. However, apart of a successful start up of the business each company should constantly seek for the development and higher profits. In the market of toys for home pets, there is high competition, therefore, being customer oriented is an advantage to be used. Another advantage of the iFetch in the market is that all their products are unique and original, which grants a high quality and nice design. Among disadvantages of the company, a small size of the business should be mentioned as well as lack of experience of its executives and sales managers. Despite a little variety of the products offered, the firm already won numerous awards and prizes, which declares the high quality and great potential (http://goifetch.ca/press/). The firm sells its goods online, which allows it easily access new markets.
Generating and choosing the Strategy
Every successful business starts with a mission and vision declared and structured in its long term strategy (Johnston & Marshall, 2013, Ch.3). So far iFetch company has not announced any official strategy, neither formulated its core mission and vision. Hereby, creating company’s sales strategy should begin with setting its main goals and objectives, both long and short term. Sales management is a key part of the marketing strategy. However, regardless the fact that iFetch is a new business, its marketing technology is at the one-to-one stage, as it offers interactive service and real-time updates, 24/7 internet access to its goods, numerous touchpoints in different countries and one-to-one relationship with its clients (Johnston & Marshall, 2013, Ch.3). Hereby, as per Porter’s Typology, iFetch company should adopt a differentiation business strategy, as the product they offer is unique and popular worldwide. This strategy will require the firm to provide a high-quality sales force and high-quality customer service. Miles and Snow’s typology would define iFetch’s strategy as a defender’s one, due to the fact that the firm sells a limited variety of a product in a comparatively stable and predictable market of pet owners. (Johnston & Marshall, 2013, Ch.3).
Marketing mix
Product, Distribution, Price and Promotion are the elements of the marketing mix (Johnston & Marshall, 2013, Ch.3). Company’s product is clearly defined and mentioned on its web site. However, the company should increase its assortment so that to attract more customers and be able to compete with stronger rivals. For example, several new toys or some accessories for dogs might be offered besides the iFetch device and balls. The firm’s distribution is more a selective one, as it provides the products in a certain list of countries to a specific consumer segment. The pricing strategy can be declared as a neutral one, as iFetch devices are neither very expensive, nor too cheap. For the future development, the company should diversify its pricing and assortments that to be competitive in the luxury market as well. As a new start up, the company definitely needs to work on its promotion. As for now, advertising may be not as effective as in personal selling, as the second option allows to build longer relationship with a customer and attract him better than any adds.
Organization chart
Since the company is new and does not have a largely divided assortment of products, the best and the simplest way of organizing a company sales force is by geographic organization (Johnston & Marshall, 2013, Ch.4). As it is mentioned on the main web site of the company, it has special on-line profiles for a range of the countries across the world: Canada, USA, UK, Spain/Portugal, South Korea, Norway, Netherlands/Belgium/Luxemburg, Mexico, Finland, Denmark, Czech Republic, Australia/New Zeland (see Figure 1) (goifetch.ca/). Hereby, in order to make the delivery process faster and cheaper the company may locate its departments in all or in a few of the above mentioned countries. Thus, the Geographic sales organization of the iFetch will look as it is shown in the Figure 2. As it is mentioned by Johnston & Marshall (2013, Ch.4), this type of the sales organization requires separate sales people to be assigned to each territory. Hence they will have an opportunity to examine consumers’ needs and pains so that to satisfy them further, and thus attract more potential customers. But it also challenges the company to hire proficient salesmen for each district, as on their competency the company’s sales forecasts will depend.
Figure 1. iFetch countries of cooperation.
Figure 2. Geographic sales organization of the iFetch company.
Sales positions to be employed
First of all, iFetch will need a Retail Sales Representative, who will be responsible for assisting customers and helping them to purchase the goods offered. This position is significantly important as the company sells its items on-line, thus lacks personal communication with clients. Therefore, a person will be also responsible for establishing strong relationships and also upsales and referring new clients.
Secondly, Regional Sales Manager will have to deal with promoting the business in the markets abroad. This position is paramount to the company’s growth and success, as local market solely is not enough for the business prosper. Thus, a person will be responsible for analyzing different market tendencies, company’s strength and weakness compared to its closest rivals and opportunities for entering new markets. Regional sales manager will have also to monitor the success of the Sales representatives in the area assigned. Hereby, a Retail Sales Representative should be an Order Taker and a Consultant type of a sales person, as he or she will have to build relationships through assisting clients on regular purchases. Meanwhile, a Regional Sales Manager should be of a Relationship Builder type, as the person will be responsible for creating strong business partnerships in different countries (Johnston & Marshall, 2013, Ch.8).
Recruiting and training methods
As a developing company that aims at enlarging its target market, iFetch should enroll good marketers. However, before starting any recruitment process, company’s management should prepare and analyze job descriptions and main qualities they want a candidate to have. Based on this, appropriate methods for deciding on selection criteria will be defined and application forms for interviews created (Johnston & Marshall, 2013, Ch.9).
Hereafter, a recruitment process will start with placing a job vacancy on the company’s web site. Most likely, Retail sales representatives will be enrolled from outside the company, which a Regional sales manager should be better chose from the current employees, who are already familiar with iFetch business processes. Applicants will have to fill in a corresponding form, which will include questions about their age, gender, education, work experience and some personal qualities. Based on the answers received company’s HR manager will appoint an interview for the candidates, who suit the position’s requirements the best. At the same time, no decisions will be based on the gender, age or other prejudgments. But personal qualities will play a key role in the decision making process. Company’s HR will seek for the good communication skills, ability to translate the company’s vision, self confidence, creativity, strong intrapersonal skills (Farrington, 2016).
However, even candidates with the best qualities performed will have to be trained further so that to meet the highest ethical standards and values (Johnston & Marshall, 2013, Ch.10). Statement of Ethics, declared by the American Marketing Association (n.d.) lists six main ethical norms and values for marketers. Among them, iFetch will emphasize on training the following three: responsibility, respect and transparency.
Responsibility as recognition of the liability and consideration of the commitment for the company’s actions and policies, will be trained through attending weekly meetings, working in small groups and coaching (American Marketing Association, n.d.). Respect will be also trained through mentoring and coaching, as it is the way managers can show their subordinates the right way to value human dignity of each and every customer, coworker and employer.
In order to build a good team and strong business relations, transparency is required to be well trained. This can be done through attending official meetings, where the main achievements of the firm are revealed and new goals are discussed.
Apart of the aforementioned values, candidates, who successfully passed an interview, will have to attend basic trainings so that to get acquainted with the main procedures and policies. A training manager will be responsible for teaching newcomers and evaluating their knowledge through tests and practical tasks. Trainings will last for one week, after which a newcomer will start working on their probation period. Once a good performance is observed during the next month, a newcomer will pass the probation and will be considered as an employee.
Sales compensation plan
A well prepared Sales Compensation Plan should correspond to the type of company’s business and the stage of its growth (Roberge, 2015, n.p.). iFetch company is a fast developing start up. Which means, at this stage the customer acquisition is the most important stage. Therefore, salespeople will be compensated greatly for referring new clients. Since, all sales compensation plans should be simple and clear, to fit the company’s transparency value, all salesmen will be paid a fixed salary and enjoy granted other benefits, such as security and comfortable working place (Johnston and Marshall, 2013, Ch.11). However, the main motivation will be given through commissions for each extra transaction and for ‘hunting’ new clients within a corresponding competition held for the Sales representatives. Meanwhile, Regional managers will get commissions for each business sales transaction within a plan declared. In case a person succeeds in any extra contract, a separate bonus will be granted.
So, job descriptions will look as follows:
References
iFecth (n.d.) goiFetch.ca Retrieved at: http://goifetch.ca/
Johnston, M., & Marshall, G. (2013). Sales force management. (11th ed.). New York: Routledge. ISBN-13: 978-0-415-53462-8
American Marketing Association (n.d.) Statement of Ethics. Available at: https://www.ama.org/AboutAMA/Pages/Statement-of-Ethics.aspx
Roberge, M. (2015) The Right Way to Use Compensation. Harvard Business Review. Available at: https://hbr.org/2015/04/the-right-way-to-use-compensation-2
Farrington, J. (2016, Feb 17) The Skills That Should Be in Every Sales Manager Job Description [+ Template Listing]. Available at: http://blog.hubspot.com/sales/sales-manager-job-description-skills#sm.00001o60hsk7kecuvszkx73vqte8o
