Sales Plan for Courier Pak in Kingston upon Thames, UK - Case Study Example

SALES PLAN FOR COURIER PAK IN KINGSTON UPON THAMES, UK Short Resume For the Market Opportunity Global transportation and logistics industry is a growing industry which covers different and wide range of service providers whose main role is to provide services in different modes of transport. In addition, the sector also deals with such services like warehousing, handling and added value service for the different customers using it as a mode of transportation for their different needs (Frock, 2008). In the recent years, the sector has witnessed growth as many individuals are registering for the services provided by the global transportation and logistics industry. With globalization taking place in different corners of the world, federal express stands a chance of acquiring a stable market opportunity in the Kingston region a territory to the south west and west of London. This is because the company is in the global transportation and logistics industry offering transportation, electronic businesses and other services related to business in its wide network (Shanklin, 1990). Sales Objectives within (3, 6 And 12 Months), Revenue Margin, Market Share Percentage For federal express new branch Courier Pak to successfully venture their services or business in the Kingston region, their sales objectives will be as follows. Within 3 months To invest into strategic programs To use the strengths associated to sales and marketing to interact with their prospective customers and educate them on their services To differentiate by expansion of climate-neutral and friendly products and services Within 6 months To increase profitability and productivity of products and services offered. To provide services and products of high quality To conduct product and service specialization to satisfy different customer needs. Within 12 months To apply research and development in creating changes to their services and products To remain a leader in technology in the region To balance challenges and economic decline by restructuring various aspects of their operations To work on further growth in spite of the crisis being experienced in the sector For market shares in the Kingston region, the company will advocate for using the needs based market segmentation strategy which will limit the operations within the region. Moreover, the company will determine the demographic profile, lifestyles and transport behaviors of residents living within the region and within one year, the company should have at least half the market share of the Global transportation and logistics industry in the region. The revenue margin between the months is also expected to consistently increase as the company expands its way within the region (American Management Association., 1997). The revenue assumed to be used within the first yeas is approximated as £500,000 as this will cater for all the activities and arrangements within the first year of operation. Moreover, the business will be operating at Quarterly margins of 7.08%. This will useful as it will reflect on the internal comparisons since acceptable profits margins vary in different situations like when a business is new or when undergoing economic melt down. In addition, the business will strive achieve a market share of 40.0% within the region in the first year so as determine whether the objectives of the sales and business in general are met. B2B or B2C sell? Courier Pak express will use both B2B and B2C services in the region. Other companies in the region will greatly benefit from this because this will avail online business services therefore will not be greatly burdened by the transfer of products from one are to another. Using B2B, Courier Pak will apply a category of tools to direct customers in the regions to receive a good shipping experience by using their company services. An example is that consumers will be able to receive information pertaining to shipping, arrival times and collections sites thus saving them time. By using wireless data collection device to check on the codes of their shipment, customers will be able to determine where packages are being transported. The use of these will enable facilitation on packages from business to business and from business to consumer thus immensely saving on travel costs and time for both parties involved (Birla, 2013). Target Segments and Prioritisation? / Targeted Customers Courier Pak will have to conduct a target segment and prioritization in the Kingston region based on the different social classes present. Since the company will majorly target enterprisers in the region, the need for target segments and prioritization will be essential as it will bring about effectiveness, reliability and secure service operations for them. The company will thus win the loyalty of customers in the region because it will be providing safe product delivery taking into consideration aspects like quality speed and convenience. This will give a strong image in the region thus it will be able to attract a wide range of consumers and businesses making the process a success within the first year of its operation. Therefore, different business segments will be created to address specific issues and example is the fedEx express segment which will be tasked with the tracking of parcels, quality and time issues. The second segment will be fedEx custom critical will ensure that packages being transported are cared for. The third segment will be fedEx trade networks and finally the supply chain services which will ensure that how the packages are being transported meets the stated customer satisfaction. On a daily basis, the company will expect a target customer of five hundred within each of its constituted segments (Federal Express Corporation., 1994). Geographical Concentration The Courier Pak branch is expected to cover all areas in Kingston region because of the nature of its well diversified business mix. In spite of serving the entire region, the business mix of federal express will enable it to mitigate against such issues like concentrations of revenues in a segment among other things. Strong information systems network will be applied by the company in the region to effectively serve different customers and connect to its other branches in other locations. These factors will enable the company to expand to different areas within the region as the stream of revenue will be predicted to be above the S7P 500 companies. Therefore, within the first year, the company should have an estimated four other branches from the initial one started in the region (Harvard University., 1980). Sales Visit to Secure a Purchase Commitment To secure a purchase commitment, customers visiting the Courier Pak offices will be expected to conduct a sales visit of twelve times within three months. This may be structured in that whenever a customer purchases the product offered and is willing to come back to shop at the store, a card is given and a bonus point awarded. Purchasing the products offered by the business twelve times may mean a bonus of one hundred and forty four points making the person possessing the points a reliable customer to the business. This will help in determining loyal customers from those who use the services of the Courier Pak because they can not access other alternatives. The purchase commitment will act as reward for loyal customers using the services provided by the Courier Pak regularly. Those who merit for the purchase commitment will be expected to conduct sales visit to the company between time intervals of one sale per week (Lovelock, 1982). When purchase commitments are made, the customer is assure that he or she will purchase products associated to courier pak products at fixed price in the future. Therefore, loyalty is developed between the customer and the business making him choose it as a preference over other businesses dealing with the same product. Representatives Needed To Cover Geography/Visits/Timescale To completely cover the Kingston region, Courier Pak will hire twelve representatives. This will take them a timescale of two weeks as they will be required to integrate the company’s activities through the use primary and support activities. This will work to create awareness among customers in the region of the existence of the Courier Pak services within a stated time. In the process of starting up the company’s operation in the region, the representative will also be expected to drive actions and initiatives across different chains of the Courier Pak which will functional when the operations commence. The team will require additional training to get acquainted with such things like new technologies which they will be required to use in the field. Learning on different technologies will assist the team in the integration process thus creating efficiencies in the value chain as it will be essential in determining the pricing of the services to be charged and delivery of what the customers’ expectations (National Transportation Safety Board. 2005). Depending on the sales representative’s skills and experiences, the business will pay them as follows. Typical compensation break down The type of sales persons employed Typical roles for sales level Role of the sales person Base salary: 15-25k Total Income: £30-40k Junior B2B persons Seniors Junior inside/outside sales and junior account managers with consumer product companies Immediate to two weeks cycle All sales activity measured Simple client decision making Base salary: 20-60k Total income: £40-55k (at plan) 1) A rep with 3-7 years experience in B2B 2) Senior, accomplished rep at large stages in career Mid level inside/outside sales role Territory account manager with consumer packaged goods Very micro-managed Clients likely have fairly simple decision making process Base salary: £30-40k Total income: £80-100k( at plan) Over five years of B2B experience. Presents well in person and has a consistency of good performance. B2B sales companies that are focussed in companies with larger employees. Rep has little autonomy Measured by sales results Channels of Local Communication &Local Promotion Required To promote the business in the region, Courier Pak will use the media. This will involve running ads at local radio and television stations in the region. The benefits are that a large population of the targeted market will be reached because it is estimated that per each household, there is a television or a radio. Secondly, the use of social media platforms will be influential in reaching the desired customers. Social media has grown all over the world and those using different sites like face book or twitter will see the ads about the Courier Pak operations in the area in their respective accounts. In addition, the questions will be attended to by the customer care team who will be selected to handle the Courier Pak social sites in the region. Lastly, road shows will be applied by the business in the region as it will be desperate to create awareness amongst targeted customers. This will involve issuing of Courier Pak leaflets with descriptions of the services, of the branch applied and costs charged on different services (Trimble, 1993). Budget Required To Fund Each Channel of Communication & Promotion The table below shows the budget required to fund each channel of communication and promotion in order for the Courier Pak to create awareness among the targeted customers in the Kingston region. Social Media Build (Also, the company will need a graphics person to design other images such as Pinterest boards and welcome pages such as the Facebook landing page. Profiles will need to be optimized for social impact and online brand message delivery). £5,000 Social Media Marketing Strategy (A social media marketing strategy in itself should be considered your first investment. Whether thats delivered by a social media consultant, a social media marketing agency, or an internal social media manager, the strategy is a roadmap that no company can afford to do without). £10,000 Social Media Content Development (the company will need to commit to creating ongoing compelling content. Content takes professionalism in design, writing skills, video production, photography, webcast production, audio development, and more.) £5,000 Social Media Channel Management (the company will need daily management of the social channels that will drive your online brand awareness and engagement. Social media management takes listening, research, staying on top of trends and influencers, and ongoing creative thinking.) £5,000 Social Media Campaigning (As an ongoing marketing practice, campaigning and outreach to specific targets, whether primary consumer/client or direct to media, is a necessary step to keep your brand in the face of those who will influence or directly make the buy. There are loads of opportunities to create and deliver display ad and PR campaigns within the social networks) £5,000 Social Media Management and Monitoring Tools (Tool required by the company and services to move onto the next level) £5,000 Radio and television £10,000 Road shows £20,000 £65,000 Selling Price Adopted In the Plan The selling price adopted for example will be £50 as it will take into consideration the profit margins which 7.08%. When the formula is worked out backwards (to build your target selling price), aggregate or total your costs will be found. This will ensure that the business does not run at a loss. However, the new business in Kingston, Courier Pak will experience reduction in the selling price because it will adopt skimming pricing as their selling price. This will involve using a high initial price at the start of the operations as the nature of the demand for the services offered in the region will not have been ascertained. This is because of the numerous advantages associated to the strategy. An example is that at the top of the demand curve for the services being offered by the company, price elasticity will be expected to be low. This will be so because customers who not price conscious are the ones who will be expected to buy the services offered and as the company grasp the entire market in the region, it will lower its prices charged on the services it renders. Therefore, the selling price that will be adopted for the new business in the region will be greatly dependent on price skimming. Margins Needed To Achieve Plan Objectives The working margins will be 12 % which will mean that the company makes £0.12 before any interest and taxes for every pound of sale made. An increase in the working margin will reveal growth within the first year of operation. In order to achieve the objectives or plans of the new business, total dedication will be required from the sales manager within a span of one year. In addition, within this time, there will be no time breaks as he will be tasked with meeting the predicted sales which will require effective planning from his side. He will also be expected to support other team members in order to achieve this thus he may divide the task and time margins into segments. An example of the time margin expected from the sales manager is as follows. He is required to enter job by eight in the morning and lives after six in the evening for six days in week for the whole of the year. Bibliography AMERICAN MANAGEMENT ASSOCIATION. (1997). Blueprints for service quality: the Federal Express approach. New York, AMA Membership Publications Division, American Management Association. BIRLA, M. (2013). Fedex delivers how the worlds leading shipping company keeps innovating and outperforming the competition. Hoboken, N.J., Wiley. http://rbdigital.oneclickdigital.com. BIRLA, M. (2013). Fedex delivers how the worlds leading shipping company keeps innovating and outperforming the competition. Hoboken, N.J., Wiley. http://rbdigital.oneclickdigital.com. FROCK, R. (2008). Changing how the world does business: FedExs incredible journey to success : the inside story. San Francisco (California), Berrett-Koehler. FEDERAL EXPRESS CORPORATION. (1994). FedEx: Federal Express interim graphic FEDERAL EXPRESS CORPORATION. (1990). Aircraft ramp operations policy and procedure. [Place of publication not identified], Federal Express. standards. [Memphis, Tenn.], [Federal Express Corporation]. HARVARD UNIVERSITY. (1980). Federal express: Customer Service department (A-B1). Boston, Harvard Business School Case Services. LOVELOCK, C. H. (1982). Federal Express (B). Boston, MA, Harvard Business School. SHANKLIN, W. L. (1990). Six timeless marketing blunders. Lexington, Mass, Lexington Books. TRIMBLE, V. H. (1993). Overnight success: Federal Express and Frederick Smith, its renegade creator. New York, Crown Publishers. NATIONAL TRANSPORTATION SAFETY BOARD. (2005). Hard landing, gear collapse, Federal Express Flight 647, Boeing MD-10-10F, N364FE, Memphis, Tennessee, December 18, 2003. Washington, DC, The Board. Read More