Comparative Study of Abb, Tatatelecom and Hcl

8/13/2019 Comparative Study of Abb, Tatatelecom and Hcl

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COMPARATIVE STUDY OF ABB, TATATELECOM AND HCLCOMPARATIVE STUDY OF ABB, TATATELECOM AND HCL

PROJECT ON SALES MANAGEMENT

A COMPARATIVE STUDY

OF

SALES FORCE OF ABB,

TATA TELECOM

&

HCL

IN MARKETING OF

SWITCHING DEVICES IN INDIA

Submitted to :-

Submitted b:-


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PREFACE

The Project was taken up in a broad perspective of comparing the

sales force of various (in fact three) companies and thereby

understanding the working methodology and functioning of a sales

organisation. We have considered certain parameters and

guidelines with respect to which we compared TataTelecom, ABB

and HCL who have a common product Switching Devices.

The project not only throws light upon the basics of sales

management but also gives a nice picture of witching device

market in !ndia by comparing the basic functioning of sales force of

above said companies.


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ACKN!LE"E#ENT

We would like to e"press immense gratitude to all the employees

of #$% &oida' ' *alkaji and TTT+%+$,-' urgaon who

have taken immense pain to entertain our group and spent their

precious time to fill up the /uestionnaire and imparting the

necessary information' +specially -r. 0.P.-aharane' -r.

1amakanth of #$%' -r. #.*. Pandey of and -r. hailendra

*umar Pandey and 2ineet 3iwan of TT T+%+$,- who have

helped us throughout.

We would also like to thank our Professor -r.urendra anghwan

for guiding and motivating us in a very practical way sometimes as

a friend and sometimes as a guide in accomplishing this project.


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S$NPS%S

witching 3evice is a generic term and includes various kinds of product'

which are basically used for data transmission and telecommunication. These

electronic devices are made up of semiconductors and very costly and have

only industrial application .To visuali4e them more we can see the product

description later on in the project.

Though the product we have chosen is too technical and appears as if there

would be very less re/uirement of direct selling in marketing of the product.

ut it was &eall' s(&)&ising and inte&esting *o& (s also to +now the

im)o&tance o* di&ect selling in the ove&all ma&+eting st&ateg' o* the

)&od(ct. We also studied the various other aspects of the sales organisation

e.g. the 5uota system' elling objective' Training need identification'

Performance appraisal etc and prepared a very concise report comparing all

of them and later on highlighting the commonalities and differences in them


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$,-P&6 P1,7!%+

HCL %NFR#AT%N S$STE#S

#$% !nfo systems %td. (#$% !nsys) is !ndia8s premier information technology

company. With its in9depth e"pertise in developing solutions spanning diverse

technologies' #$% !nsys aims to propel its course on to the high9growth path

of 8Total Technology !ntegration8. %everaging its e"pertise in total technology

solutions and services' #$% !nsys offers value9added services in key areas

such as P implementation' software applications' networking consultancy

and management and a range of support services.

To capture the two ends of the market spectrum 9 enterprise solutions and

P$s 9 #$% !nsys has made significant strategic infrastructural investments in

the Professional ervices ,rganisation (P,)' the upport ervices

,rganisation (,) and in its manufacturing plants at &oida and Pondicherry.

The approach is to view hardware as one of the key components of the total

solution. The build9up of the services business (both of P, and ,) would

enable #$% !nsys to offer complete solutions and will also raise

manufacturing volumes to internationally competitive levels.

+stablished in :;;?? software specialists' four software factories with +!9$--

level < certified processes' and dedicated 8$entres of +"cellence8 for P and

telecom solutions. ignificant P implementation projects by the P,

include eneral -otors' #- %ancer' *alyani rakes' and amsung. P,8s


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projects involve high9level integration projects and functional consulting and

implementation services for ERP (+nterprise 1esource Planning).

$ontinuously increasing customer e"pectations and applications' its focus on

integrated enterprise solutions have strengthened the #$% !nsys ,8s

capabilities in supporting installation types ranging from single to large' multi9

location orders. The ,' comprising a direct support force of over @??

members' is operational at :A: locations across the country and is the largest

such human resource of its kind in the !T business. majority of the , hasbeen specially trained in supporting solutions' the company8s key focus area.

#$% !nsys8 manufacturing facilities are !, ;??: 9 B??? = !, :


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country. With its e"tensive network of @?? resellers across D?? cities'

7rontline 3ivision has actively promoted the penetration of P$s in the home

and the small officeEhome office (,#,) segments. To provide its users

innovative support services and solutions' the 3ivision has established a

countrywide network with B?A partners across :?? cities' termed the Fupport

&etF. 7ocusing on the small and medium enterprises (-+)' the small

officeEhome office (,#,)' the home and the 7irst Time 0ser (7T0)

segments' the 7rontline 3ivision aims to become a dominant purveyor of !T

products by value added services and enhanced solutions to its customers.

#$% !nsys8 ,ffice utomation 3ivision' previously known as #$% ,ffice

utomation' markets and supports Toshiba photocopiers' !n 7ocus multimedia

projectors' 3uplo digital duplicators' +ricsson +PG' amsung *ey

Telephone ystems' and &okia cellular phones. The 3ivision8s vast

distribution and support network spanning over :?? locations and over


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total /uality management' over H? percent of its employees are being trained

under the Phil $rosby methodology of 5uality +ducation ystem.

!n :;;B' #$% formed a joint venture company' #$% #P' with the international

computer giant' #ewlett9Packard (#P)' and precipitated a technological leap

by achieving world class manufacturing e"pertise in the country for #P8s

1!$E0&!G based business servers and workstations. !n :;;H' #$% and its

joint venture partner' #P' re9organi4ed their joint business activities in !ndia

through the buying back of #P8s B> per cent of e/uity in #$% #P by the #$%promoters.

7ollowing the government8s decision to open up the distribution of !nternet

services to the private sector' #$% !nsys' under a new initiative called

WWW.,W provides a complete range of solutions for the !nternet. These

services include setting up of infrastructure for !Ps' solutions for cybercafes'

information kiosks' &et9on9T2' corporate !ntranet and e"tranet (2P&s)'

infrastructure for smart cities and a set of management services such as

facilities management' network management etc.

With an enlarged business focus' #$% !nsys has strengthened its multiple

strategic alliances with specialists to include world leaders such as !ntel for

P$ and P$ erversC -icrosoft' &ovell and $, for operating systems and

software solutionsC Toshiba $orp. for business automation e/uipmentC P

for specialist +1P solutionsC and ,racle' ybase and !nformi" for 13-

platform. !ndeed' a vision to create enterprises of tomorrow.


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ABB

The $ompany was incorporated on B


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ended D:st 3ecember :;;; is 1s.


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TataTelecom

etting up business on the !ndian sub9continent in :;@H' today Tata Telecom

is an undisputed total business solutions provider. With technical

collaborations and partnerships withvaya' Tata Telecom is fully e/uipped to

offer a gamut of state9of9the9art communication systems. Tata Telecom is a

rare organisation in !ndia with proven and comprehensive skills in 1=3'

Technical support' -anufacturing' ales and $ustomer upport areas of

e"pertise.

Tata Telecom8s usiness $ommunications 3ivision ($3) provides complete

communication solutions for usiness +nterprises. !ts product range includes

+PGs' *T' 2oice -ail ystems' !nteractive 2oice 1esponse ystems

(!.2.18s)' and $T! = &etworkingolutions.

,ur constant endeavor to understand comple" customer needs has resulted

in a range of products and solutions. The range includes Telephony' -obility

olutions' -essaging olutions' $onferencing' $all $enter olutions' and

3ata &etworking.#ence'Tata Telecom provides solutions across all segments

9 #omes to hops' mall to %arge offices' 7actories and large !ndustrial units'

anks' $all $entres and D9< tar #otels' #ospitals' -&$s' large !ndian

corporates' departmental stores' etc..The unbeatable product range of Tata

Telecom includes the latest in each segment

The technological superiority' comprehensive 1=3' upgraded systems' wide

service Dreach' strong customer base and the e/uity associated with the Tata

heritage .
http://www.avaya.com/http://www.tatatelecom.com/products/telephony/index.htmlhttp://www.tatatelecom.com/products/mobility/index.htmlhttp://www.tatatelecom.com/products/mobility/index.htmlhttp://www.tatatelecom.com/products/messaging/index.htmlhttp://www.tatatelecom.com/products/conferencing/index.htmlhttp://www.tatatelecom.com/products/callcenter/index.htmlhttp://www.tatatelecom.com/products/datanetworking/index.htmlhttp://www.avaya.com/http://www.tatatelecom.com/products/telephony/index.htmlhttp://www.tatatelecom.com/products/mobility/index.htmlhttp://www.tatatelecom.com/products/mobility/index.htmlhttp://www.tatatelecom.com/products/messaging/index.htmlhttp://www.tatatelecom.com/products/conferencing/index.htmlhttp://www.tatatelecom.com/products/callcenter/index.htmlhttp://www.tatatelecom.com/products/datanetworking/index.html


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A-o(t The P&od(ct . Switching Devices

+PG of +-$ of #$% *ajun -HH? of

TataTelecom


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7ig. witching 3evice products

EPAB/ o* TATA TELEC#is designed specifically to provide the reliability

re/uired for the convergence of voice' data and video into a common

infrastructure' and features its uni/ue witch rchitecture 7or +"treme

1esiliency (7+1Q) that distributes critical switching' management and

processing functions.

E#C o* HCL is the foundation for a total networking solution. !t is an

e"ceptionally powerful @?R bps resilient multiservice' multilayer' intranet

service center and the first enterprise backbone switch which integrates

multilayer switching over :?? -bps' : bps and T- over a single' fully9

redundant hub. This support for a broad range of network environments

allows enterprises to use any combination of these technologies with no need

to adhere to any single technology today

The modular' enterprise9class +a0(n #1T12 #(lti*(nction Switch o* ABBis

designed specifically to provide the reliability re/uired for the convergence of

voice' data and video into a common infrastructure' and features its uni/ue

witch rchitecture 7or +"treme 1esiliency (7+1SBD:) that distributes

critical switching' management and processing functions.

Basis * the St(d'

We developed certain guide lines and decided the following key parameters

which we considered as the most important for visuali4ing the functioning of a

sales force

:. The role of personal selling in overall marketing strategy

B. elling objectives and strategies.


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D. *ey objections faced by sales personnel


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determine the kind and si4e of personal9selling operation that like company

has and its role in the total promotional program. fter the role is defined'

/ualitative long9term personal9selling objectives become the major

determinants of the types of /uantitative short9term personal selling

objectives.

7or e.g.

a. To reach out and obtain new customer.

b. To serviceU e"isting accounts i.e. to maintain contact with present

customers' take orders and so forth.

c. To keep customers informed on changes in the product line and other

aspects of marketing strategy.

d. To provide advice and assistance to middleman on various

management problems.

e. To collect and report market information of interest and use to

company management.

5(antitative -0ectivesare short9term objectives and are adjusted from one

promotional period to other. The sales volume objectives9 the rupee or unit

sales volume management gets as the target for the promotional period9is the

key /uantitative objective. ll other /uantitative selling objectives derive from

or are related to the ales volume objective.

7or e.g.

a. To capture and retain a certain market share.


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b. To obtain sales volume in ways that contributes to profitability.

c. To obtain some number of new accounts of given types.

d. To keep personal selling e"penses within set limits.

e. To secure targeted percent of certain accounts business.

ales related marketing policies are guidelines within which the company

seeks to reach both /uantitative and /ualitative personal selling objectives.

They provide general guidance on what to sell and whom to sell to shape the

fundamental nature of a company and are important determinants both of the

kind of sales personnel need and their total number (the two components of

personal selling strategy). Pricing policies' too' have an important impact'

especially on the kind of sales staff needed9 sales people have to persuade

target buyers not only to accept the companyIs products but at the price

asked. ales9related marketing policies' like personal selling objectives' vary

with the competitive setting. !t is especially important that they be attained to a

companyIs particular situation under conditions of monopolistic or oligopolistic

competition' much more so than when there is no direct competition.

Personal9 selling strategy involves the implementation of sales policies to

achieve personal selling objectives. 7ormulating personal9selling strategy

re/uires analysis of competitive posture to determine the kind of salesperson

needed and the si4e of sales force. Personal9selling strategy ultimately must

be individuali4ed for each customer and prospect' each salesperson' in the

final analysis' determines how and when to do what in the contacts with each

assigned customer. lthough management makes the key decisions on

personal9selling strategy' each salesperson determines (through the /uality of

job performance) the effectiveness of that strategy in achieving the companyIsoverall personal9selling objectives.


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64Ke' -0ections Faced B' The Sales Pe&sonnel And The P&o)osed

Sol(tion

*ey ,bjections

:. Price ,bjection

!t is the most common type of objection raised by prospects in

which they e"press their inability to purchase at such a higher price.

ometimes prospects pretend that the price is higher for them with

a view that salesman might decrease the price.

#andling objections

a. ,ffer substituteO $heap substitutes.

b. Justify the priceO y e"plaining about the /uality' utility and

durability of the product.

c. 3iscount offers.

d. ,ffer installment payment.

e. Price factor can be avoidedO tart talking about durability' utility

and services of products.

f. how proofsO how catalogued copies of invoices cash bills etc.

B. 5uality ,bjection

!t is relating to design' durability' si4e' colour' packing etc.

#andling


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To prove superiority of the product by making a comparison of

competing products. #e can show laboratory reports' e"perts

opinions etc. in suitable cases to meet such objections.

D. Payment ,bjection

!t is regarding lack of ready cash to pay the full price of product.

#andling ,bjection

,ffer credit or pay in installment.


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7. Res)onsi-ilities o* the sales e8ec(tive and the deg&ee and level o*

coo&dination he has with the P&od(ct 9 B&and manage&

1esponsibilities

:. ales Program

#e takes initiative in establishing short term and long9term sales

goals of the division and in collaboration with other marketing

e"ecutives gets sales' profits' growth and other goals.

B. ,rganisation

ales -anager establishes an effective plan of organi4ation and

methods of controlling the activities of members of the sales

organi4ation that will provide sufficient time for carrying out the full

time of departmental responsibilities.

D. ales force management

ales -anager identifies promising sources for recruitment of new

sales personnel and sets standards for selection of the most

promising new personnel from among recruits. #e ensures that

sales personnel are properly motivated so as to achieve optimum

sales performance.


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subordinates and sales personnel provide them with feedback about product

performance and acceptance generally not available from other sources.

:4 Rec&(itment P&ocess, Selection, T&aining ;content, *ac(lt', d(&ation? >? A? HA B


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=4 Re)o&ting Fo&mat and *&e>(enc'

+very firm has its own ways to communicate between sales

representative and sales officeC the choice of method is the

responsibility of management. !t is however very much in the

interest of salesman that such communication should be really

ade/uate and a vital part of his work is to ensure that it is

maintained. ales reports are necessary for the following four main

reasonsO

a. To provide information regarding salesman

b. To provide information on the conditions prevailing

in market.

c. To provide a permanent case history for each

account.

d. To maintain communication between salesman and

sales office.

!f you intend to perform any task to the best of your ability' you must approach

it in the right frame of mind. The human mind tends to function at its best

when following the well9trodden path of habit. The wise salesman' therefore'

sets aside a specific time of day to write his reports. #e allows himself

perhaps an hour or an hour and a half each evening for this purpose. -any

salesmen prefer to allow themselves an hour or so in which to have a meal

and KunwindI before they settle down to write their reports.


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ince sales representation may be regarded as a profession' one cannot

e"pect to work a nine9to9five stint and then finish for the day. The salesman is'

of course' entitled to his leisure and providing he organi4es himself properly'

he can have and enjoy it. The work he does' however' is not dull routine.

To write lucidly' one must first marshal oneIs fact. !t helps if you have a logical

mind. !f you have not' efforts must be made to adopt a logical approach to the

information you wish to impart. The matter to be reported should be sub

divided and set out under sub headings. entence should be as short aspossible. The long unwieldy sentence demands for greater concentration on

the part of the reader than a short one. Paragraphs' too' should be kept short

and consist of no more than two or three sentences.

3o not assume that the reader is immediately familiar with the detail of the

situation. +nsure that each report contains a brief reference to the e"isting

situation before the new information is provided. 3ifferentiate clearly between

what has been stated to you by the customer as facts and what is only your

own interpretation of the facts.

!f a customer has given you information' which he has asked you to treat as

confidential' state this in the report.

The Fo&mat

The *i&st )a&ag&a)hof your report should state the purpose of the visit. -any

salesmen overlook than fact that their calls should have a specific purpose.

+very visit should have a purpose and the report should state that purpose.

The management is entitled to know the motivation' which caused you to visit

the customer.


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The second )a&ag&a)h should deal with the main subject of your visit.

ucceeding paragraphs under suitable sub headings. hould deal with any

other items discussed. ,pinions and comment on the part of other should

generally be kept to the end and entered under a suitable title such as

K1emarkI.

7inally' the actions re/uired to be taken should be shown at the end of the

report. This should state what is to be done by management or sales office

personnel and also what is to be done by the representative himself. +achaction item should be numbered.

?4 Si@e o* sales *o&ce

!t is difficult to determine the e"act number of sales persons that a

particular company should have. Three basic approaches in

appro"imating this number areO

:. Work load method

The basic assumption is that all sales personnel should

shoulder e/ual work load involved in covering the

companyIs entire market' then divides by the workload

that an individual shall handle' thus determining the

total sales people re/uired.

teps involved in this approach

a. $lassify customers' both present and prospective

into sales9volume9potential categories.

b. 3ecide on the length of time per sales call

fre/uencies on each class.


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c. $alculate the total workload involved in covering

the entire market.

d. 3etermine the total work time available per

salesperson

e. 3ivide the total work time available per

salesperson by task.

f. $alculate the total number of sales people needed.

This approach is attractive to practicing

sales e"ecutives. %arge firms like !- and

tandT have used this approach.

B. ales potential method

!t is based on the assumption that performance of the set

of activities contained in the salespersons job description

represents one sales personnel unit' not necessarily of

any particular salesperson.

With this assumption management can estimate the

number of rupees of sales volume that each salesperson

should produce. 3ividing this amount' into forecasted

sales volume9the companyIs sales volume objective9and

allows for sales force turnover results is an estimate of

the number of salesperson needed. These relationships

are summari4ed in e/uation

&XEP (:R T)

Where


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&X number of sales personnel units

X forecasted sales volume

PX +stimated sales productivity of one sales personnel

unit.

TX allowance for rate of sales force turnover.

D. !ncremental method


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The $omparative 3ata Presentation

-ost of the aspects we could find the difference and The commonalities

among the organisation have been highlighted by different font

AR%ABLES TATA

TELEC#

ABB HCL

:. 1elative

!mportance

iven To

Personal elling

#!#

1easonO

They

customi4e

their

witching

devices

based on the

re/uirement

= understand

the customer

more.

-+3!0-9%,W

1easonO

They donIt

customi4e much

as the product

goes as a part

of large turnkey

project.

2+16 #!#

1easonO

They have an

aggressive

marketing strategy

and want to clinch

the deal at any

cost.

2. Selling


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AR%ABLES TATA

TELEC#

ABB HCL

Objective Selling

objectives of

Tata telecom

are:

a) Emphasize

overall

benefit of

customers.

b) To reach

out and

obtain ne

customer.

c) To!

service!

e"isting

accounts i.e.

to maintain

contact ith

present

Selling

objectives of

#$$ are

a) Emphasize

on high %uality

of or&

b) Emphasize

overall benefit

of customer.

c) To &eep

personal selling

e"penses ithin

set limits.

.

Selling objectives

of '( are

a) 'igh mar&et

share

This as very

clearly understood

from their top don

and challenging

%uotas* budgeting

etc.

b) To obtain sales

volume in ays

that contributes to

profitability.

c) To secure


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AR%ABLES TATA

TELEC#

ABB HCL

customers*

ta&e orders

and so forth.

d) To &eep

customers

informed on

changes in

the product

line and other

aspects of

mar&eting

strategy.

targeted percent of

certain accounts

business

D. *ey ,bjections

7aced y ales

People

-ost of the

problems are

faced in

providing

after sales

services.

3o not face

much problems

because of the

high /uality

standards

Tough to meet the

targets


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AR%ABLES TATA

TELEC#

ABB HCL

ome of the

problems areO

9

1elating to

repair

3elivery of

goods

Timely

attendance

of the worker

olutionO


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AR%ABLES TATA

TELEC#

ABB HCL

actively from

-Orders on

-$usiness

magazines

- ournals.

behavior and

e"tract

information

from customer.

report.

/. The ay they

use competitors

information

-0ricing

strategy

(ompetitors

information is

very useful

for pricing

strategy .The

basic reason

behind is to

be 1 that is

to get the

tender

passed first

criteria is to

%uote loest

- To

defend

#$$ s Sales

manager feels if

you have to

defend the

competitor then

you must &no

him

- To be more

competitive

in the

mar&et.


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AR%ABLES TATA

TELEC#

ABB HCL

price they

call it 1).

- To

understand

ne strategic

trends.

- To ma&e

strategic

plans.

They too

ma&e use of

competitor,s

information

for pricing

strategy and

other

strategic

planning

H. 1ecruitment

Policy

They prefer

9 -

They prefer

9.+.

9. Tech.

9-

They prefer

- .+.

- .Tech


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AR%ABLES TATA

TELEC#

ABB HCL

generation as

well the as

the no of units

sold out

ince the

performance

against

combination

/uota is

measured as

N' it is also

known as

Point ystem

5uota. !t is a

combination

of sales

volume goals

and activity

goals.

volume /uota is

that it is easily

relatable to

other

performance

data such as

selling

e"penses'

through

computing

ratios or

percentages.

;. Training &eed

identification0sually

training is

imparted

whenever

oss gives a

report of his

observation on

the weakness of

The groups head

identify the needs

of each person

reporting to them


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AR%ABLES TATA

TELEC#

ABB HCL

there is

introduction of

new

technology.

$ompany

feels that in

todayIs

competing

world

technology

keeps on

changing and

whenever

such a

change

occurs

training is

imparted toemployees.

individual i.e.

based on his

dissatisfaction.

!n the boss

keep track of

the sales force

and whenever

he feels that

training is

needed he refer

it to the training

department.

pass it on to the #1

for further action.

:?.Performance

ppraisal

ystem

9H?N based

on

tendersEorder

s won.

9B?N based

7i" up a

performance

standard and

compare with

that.

3o not fi" any

performance

standard and follow

P- (Performance

-anagement

ystem)


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AR%ABLES TATA

TELEC#

ABB HCL

employee.


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Recommendation

34 Rede*ining )e&*o&mance a))&aisal s'stem

F&om &es(lt o&iented )lat*o&m to e**o&t o&iented )lat*o&m

Though most of the successful organisation practices -, (-anagement by

,bjective) and considered as highly result oriented but what we personally felt

that this affect organi4ational culture as well demotivate sales people. ince

sales activity are highly /uantifiable and traceable sales people must not be

measured on the basis of end result alone. The methodology can be thought

upon and our idea is in nascent stage.

64 T&aining m(st -e made a contin(o(s )&ocess

Though most of the corporate trainer screams in their speeches training must

be made a continuous process again we found the same thing .We felt People

either donIt learn or learn it in a hard way .!t is of prime responsibility of

management to ensure /uality training to the sales personnel.


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%!-!TT!,&

:) We could not get the sales report format as it was confidential

B) We could not get detail information about the si4e of sales force.

D) !t was very difficult to get access in the company and we had to wait for

a very long period of time.

) -ost of the sales force was in the field so it was very difficult to trackthem.


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Documents

Comparative Study of Abb, Tatatelecom and Hcl