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COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
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PROJECT ON SALES MANAGEMENT
A COMPARATIVE STUDYOF
SALES FORCE OF ABB,TATA TELECOM
&HCL
IN MARKETING OFSWITCHING DEVICES IN INDIA
Submitted to :-
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
Submitted by:-
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
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 Switching device
market in India by comparing the basic functioning of sales force of
above said companies.
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
ACKNOWLEGEMENT
We would like to express immense gratitude to all the employees
of HCL Noida, ABB, Kalkaji and TATATELECOM, Gurgaon who
have taken immense pain to entertain our group and spent their
precious time to fill up the questionnaire and imparting the
necessary information, Especially Mr. U.P.Maharane, Mr.
Ramakanth of HCL, Mr. H.K. Pandey of ABB and Mr. Shailendra
Kumar Pandey and Vineet Diwan of TATA TELECOM who have
helped us throughout.
We would also like to thank our Professor Mr.Surendra Sanghwan
for guiding and motivating us in a very practical way sometimes as
a friend and sometimes as a guide in accomplishing this project.
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
SYNOPSIS
Switching Device 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 visualize 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 requirement of direct selling in marketing of the product.
But it was really surprising and interesting for us also to know the
importance of direct selling in the overall marketing strategy of the
product. We also studied the various other aspects of the sales organisation
e.g. the Quota system, Selling 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
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
COMPANY PROFILE
HCL INFORMATION SYSTEMS
HCL Info systems Ltd. (HCL Insys) is India's premier information technology
company. With its in-depth expertise in developing solutions spanning diverse
technologies, HCL Insys aims to propel its course on to the high-growth path
of 'Total Technology Integration'. Leveraging its expertise in total technology
solutions and services, HCL Insys offers value-added services in key areas
such as SAP implementation, software applications, networking consultancy
and management and a range of support services.
To capture the two ends of the market spectrum - enterprise solutions and
PCs - HCL Insys has made significant strategic infrastructural investments in
the Professional Services Organisation (PSO), the Support Services
Organisation (SSO) and in its manufacturing plants at Noida and Pondicherry.
The approach is to view hardware as one of the key components of the total
solution. The build-up of the services business (both of PSO and SSO) would
enable HCL Insys to offer complete solutions and will also raise
manufacturing volumes to internationally competitive levels.
Established in 1994, HCL Insys' PSO provides single-window enterprise
solutions in key vertical segments of telecommunications, manufacturing,
finance & banking, government, utilities and transportation. Spearheading
HCL Insys' thrust on software exports, the PSO's infrastructure comprises a
taskforce of 600 software specialists, four software factories with SEI-CMM
level 4 certified processes, and dedicated 'Centres of Excellence' for SAP and
telecom solutions. Significant SAP implementation projects by the PSO
include General Motors, HM Lancer, Kalyani Brakes, and Samsung. PSO's
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
projects involve high-level integration projects and functional consulting and
implementation services for ERP (Enterprise Resource Planning).
Continuously increasing customer expectations and applications, its focus on
integrated enterprise solutions have strengthened the HCL Insys SSO's
capabilities in supporting installation types ranging from single to large, multi-
location orders. The SSO, comprising a direct support force of over 800
members, is operational at 151 locations across the country and is the largest
such human resource of its kind in the IT business. A majority of the SSO has
been specially trained in supporting solutions, the company's key focus area.
HCL Insys' manufacturing facilities are ISO 9001 - 2000 & ISO 14001 certified
and adhere to stringent quality standards and global processes. With the
largest installed PC base in the country, three indigenously developed and
manufactured PC brands - 'Infiniti', 'Busybee' and the 'Beanstalk' and its
robust manufacturing facilities, HCL Insys aims to further leverage its
dominance in the PC market. HCL Insys' 'Infiniti' line of business computing
products is incorporated with leading edge products from world leaders such
as Intel. A fully integrated and business-ready intranet family of servers and
workstations, the 'Infiniti' line is targeted at medium and large companies to
help them to manage their intranet-related applications.
As customers' needs mature, the IT industry has witnessed a continual
evolution through a progressively finer segmentation of markets. To become a
dominant player in providing global IT services; HCL Insys has reorganized
and consolidated its hardware and services businesses. Towards this, it has
set-up overseas subsidiaries in the US, the U.K., Singapore, Malaysia and
Australia.
The Frontline division of HCL Insys markets national and international brands
of computer systems (including Toshiba Laptops) and peripherals within the
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
country. With its extensive network of 800 resellers across 300 cities,
Frontline Division has actively promoted the penetration of PCs in the home
and the small office/home office (SOHO) segments. To provide its users
innovative support services and solutions, the Division has established a
countrywide network with 205 partners across 100 cities, termed the "Support
Net". Focusing on the small and medium enterprises (SME), the small
office/home office (SOHO), the home and the First Time User (FTU)
segments, the Frontline Division aims to become a dominant purveyor of IT
products by value added services and enhanced solutions to its customers.
HCL Insys' Office Automation Division, previously known as HCL Office
Automation, markets and supports Toshiba photocopiers, In Focus multimedia
projectors, Duplo digital duplicators, Ericsson EPABX, Samsung Key
Telephone Systems, and Nokia cellular phones. The Division's vast
distribution and support network spanning over 100 locations and over 400
experienced personnel further reinforce its strong operational capabilities.
Among the specific initiatives undertaken by the OA Division are customer
meets held across the country, President Club meets, tele-audits, and setting
up of IVR (Interactive Voice Response) HelpDesks.
HCL Insys' initiatives in setting national and international industry standards in
technology, solutions and processes led to the establishment of two unique
programme - "Program Infiniti" in 1992 and "Enterprise 2000" in 1994.
"Program Infiniti" is a consistent and continuous plan designed to upgrade
and modernize HCL Insys' entire hardware and software capability to world-
class standards. "Enterprise 2000" is a unique programme with an aim to
provide IT solutions to customers, to place them at the cutting edge of their
respective businesses in the new millennium. In keeping with its objective of
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
total quality management, over 70 percent of its employees are being trained
under the Phil Crosby methodology of Quality Education System.
In 1992, HCL formed a joint venture company, HCL HP, with the international
computer giant, Hewlett-Packard (HP), and precipitated a technological leap
by achieving world class manufacturing expertise in the country for HP's
RISC/UNIX based business servers and workstations. In 1997, HCL and its
joint venture partner, HP, re-organized their joint business activities in India
through the buying back of HP's 26 per cent of equity in HCL HP by the HCL
promoters.
Following the government's decision to open up the distribution of Internet
services to the private sector, HCL Insys, under a new initiative called
WWW.OW provides a complete range of solutions for the Internet. These
services include setting up of infrastructure for ISPs, solutions for cybercafes,
information kiosks, Net-on-TV, corporate Intranet and extranet (VPNs),
infrastructure for smart cities and a set of management services such as
facilities management, network management etc.
With an enlarged business focus, HCL Insys has strengthened its multiple
strategic alliances with specialists to include world leaders such as Intel for
PC and PC Servers; Microsoft, Novell and SCO for operating systems and
software solutions; Toshiba Corp. for business automation equipment; SAP
AG for specialist ERP solutions; and Oracle, Sybase and Informix for RDBMS
platform. Indeed, a vision to create enterprises of tomorrow.
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
ABB
The Company was incorporated on 24th December 1949 as Hindustan
Electric Company Limited. In 1965, the Company’s name was changed to
Hindustan Brown Boveri Limited (HBB). Pursuant to the Scheme of
Amalgamation of Asea Limited with HBB with effect from 1st January 1989,
the name was further changed to Asea Brown Boveri Limited (ABB) with
effect from 13th October 1989. Flakt India Limited was amalgamated with
ABB with effect from 5th October 1995.
During 1994-95, a joint venture Company - ‘ABB Daimler-Benz Transportation
AG’ (Adtranz) was established by ABB Zurich and Daimler-Benz AG,
Germany, in Germany. A subsidiary of Adtranz was incorporated in India viz.
’ABB Daimler-Benz Transportation Limited which took over the Transportation
Business of the Company effective 1st January 1996.
ABB is a subsidiary of ABB Zurich, which is now an entity focused on T&D,
automation and robotics. Earlier, ABB worldwide was into the businesses of
power generation (through a joint company, ABB-Alstom Power) and
distribution and industrial systems. It has recently announced the sale of its
holding in ABB-Alstom Power to Alstom for a consideration of Euro 1.25bn.
So, ABB's only venture in India would be ABB Ltd, as it would be getting out
of the remaining ventures.
Capital:
The Authorized Share Capital of the Company is Rs.500, 000,000 and the
paid-up share capital of the Company as at the end of the financial year
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
ended 31st December 1999 is Rs.414, 183,560, consisting of 41,418,356
Equity Shares of the face value of Rs.10 each.
Shareholding Pattern: Asea Brown Boveri Limited, India, is a partly owned
subsidiary of ABB Asea Brown Boveri Limited, Zurich, Switzerland (ABBZH).
ABBZH and Fläkt AB, Sweden, a 100 percent subsidiary of ABBZH, hold
50.99% of Equity Shares in the Company. The balance stake is held by: FIs
22.14%, FIIs 3.63%, MFs 2.32, Non-resident Individual 0.08%, Nationalised
Banks 0.15%, Bodies Corporate 0.93%, Directors and their relatives 0.01%,
NSDL (Transit) 1.95% and General Public 17.8%.
ABB Ltd's business mainly encompasses power T&D and industrial
automation. The T&D segment is expected to be a major beneficiary of new
projects of Power Grid Corporation of India Ltd (PGCIL), and the proposed
privatization of the T&D segment. Incremental capacities of 28000MW have
been targeted by 2002. Every MW of power generating capacity leads to an
Rs20mn demand for T&D equipment. Industrial systems are expected to
stage a recovery with an upturn in the economic cycle and increase in core
sector investments ABB has the capability to manufacture a whole range of
T&D equipment comprising of transformers, HV and MV switchgears, cables,
capacitors, sub-stations and management systems and a host of other
equipment especially HVDC equipment. ABB has begun the rollout of the
400KV Trafostar transformers from its recently commissioned transformer
facilities at Maneja in Vadodara.
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
TataTelecom
Setting up business on the Indian sub-continent in 1987, today Tata Telecom
is an undisputed total business solutions provider. With technical
collaborations and partnerships with Avaya, Tata Telecom is fully equipped to
offer a gamut of state-of-the-art communication systems. Tata Telecom is a
rare organisation in India with proven and comprehensive skills in R&D,
Technical support, Manufacturing, Sales and Customer Support areas of
expertise.
Tata Telecom's Business Communications Division (BCD) provides complete
communication solutions for Business Enterprises. Its product range includes
EPABXs, KTS, Voice Mail Systems, Interactive Voice Response Systems
(I.V.R's), and CTI & Networking_Solutions.
Our constant endeavor to understand complex customer needs has resulted
in a range of products and solutions. The range includes Telephony, Mobility
Solutions, Messaging Solutions, Conferencing, Call Center Solutions, and
Data Networking.Hence,Tata Telecom provides solutions across all segments
- Homes to Shops, Small to Large offices, Factories and large Industrial units,
Banks, Call Centres and 3-4 Star Hotels, Hospitals, MNCs, large Indian
corporates, departmental stores, etc..The unbeatable product range of Tata
Telecom includes the latest in each segment
The technological superiority, comprehensive R&D, upgraded systems, wide
service 3reach, strong customer base and the equity associated with the Tata
heritage .
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
About The Product – Switching Devices
EPABX of EMC of HCL Kajun M770 of ABB
TataTelecom
Fig. Switching Device products
EPABX of TATA TELECOM is designed specifically to provide the reliability
required for the convergence of voice, data and video into a common
infrastructure, and features its unique Switch Architecture For Extreme
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
Resiliency (SAFER™) that distributes critical switching, management and
processing functions.
EMC of HCL is the foundation for a total networking solution. It is an
exceptionally powerful 80+ Gbps resilient multiservice, multilayer, intranet
service center and the first enterprise backbone switch which integrates
multilayer switching over 100 Mbps, 1 Gbps and ATM over a single, fully-
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, enterprise-class kajun M7T70 Multifunction Switch of ABB is
designed specifically to provide the reliability required for the convergence of
voice, data and video into a common infrastructure, and features its unique
Switch Architecture For Extreme Resiliency (SAFER\231) that distributes
critical switching, management and processing functions.
Basis Of the Study
We developed certain guide lines and decided the following key parameters
which we considered as the most important for visualizing the functioning of a
sales force
1. The role of personal selling in overall marketing strategy
2. Selling objectives and strategies.
3. Key objections faced by sales personnel
4. Overview of the sales division
5. Responsibilities of the sales executives.
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
6. Strategies for tracking competitors activities
7. Recruitment process, Selection, Training and compensational
strategies for the sales force
8. Factors taken into account while assigning quotas
9. Performance appraisal system and methods
10.Basis of formation of sales budget and sales forecasting
11.Reporting format and frequency
12.Size of the sales force
Theoretical Perspective
1. Selling objectives and strategy
1. Qualitative (Long term objective)
2. Quantitative (Short term objective)
Qualitative objectives are long term and concern the contributions
management expects personal selling to make in achieving. These objectives
change little over time and generally are carried over from one periods
promotional program to next. The basic considerations influencing the setting
of qualitative personal selling objectives are closely related to the key
decisions on sale policies and personal- selling strategies. These decisions
determine the kind and size of personal-selling operation that like company
has and its role in the total promotional program. After the role is defined,
qualitative long-term personal-selling objectives become the major
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
determinants of the types of quantitative short-term personal selling
objectives.
For e.g.
a. To reach out and obtain new customer.
b. To “service” existing 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.
Quantitative Objectives are short-term objectives and are adjusted from one
promotional period to other. The sales volume objectives- the rupee or unit
sales volume management gets as the target for the promotional period-is the
key quantitative objective. All other quantitative selling objectives derive from
or are related to the Sales volume objective.
For e.g.
a. To capture and retain a certain market share.
b. To obtain sales volume in ways that contributes to profitability.
c. To obtain some number of new accounts of given types.
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
d. To keep personal selling expenses within set limits.
e. To secure targeted percent of certain accounts business.
Sales related marketing policies are guidelines within which the company
seeks to reach both quantitative and qualitative 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 needed- sales people have to persuade
target buyers not only to accept the company’s products but at the price
asked. Sales-related marketing policies, like personal selling objectives, vary
with the competitive setting. It is especially important that they be attained to a
company’s particular situation under conditions of monopolistic or oligopolistic
competition, much more so than when there is no direct competition.
Personal- selling strategy involves the implementation of sales policies to
achieve personal selling objectives. Formulating personal-selling strategy
requires analysis of competitive posture to determine the kind of salesperson
needed and the size of sales force. Personal-selling strategy ultimately must
be individualized 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. Although management makes the key decisions on
personal-selling strategy, each salesperson determines (through the quality of
job performance) the effectiveness of that strategy in achieving the company’s
overall personal-selling objectives.
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
2.Key Objections Faced By The Sales Personnel And The Proposed
Solution
Key Objections
1. Price Objection
It is the most common type of objection raised by prospects in
which they express their inability to purchase at such a higher price.
Sometimes prospects pretend that the price is higher for them with
a view that salesman might decrease the price.
Handling objections
a. Offer substitute: Cheap substitutes.
b. Justify the price: By explaining about the quality, utility and
durability of the product.
c. Discount offers.
d. Offer installment payment.
e. Price factor can be avoided: Start talking about durability, utility
and services of products.
f. Show proofs: Show catalogued copies of invoices cash bills etc.
2. Quality Objection
It is relating to design, durability, size, colour, packing etc.
Handling
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
To prove superiority of the product by making a comparison of
competing products. He can show laboratory reports, experts
opinions etc. in suitable cases to meet such objections.
3. Payment Objection
It is regarding lack of ready cash to pay the full price of product.
Handling Objection
Offer credit or pay in installment.
4. Service Objection
It is relating to repair, delivery of goods, timely attendance of the
worker etc.
Handling Objection
Emphasize the service facilities offered by the organization. He can
illustrate the prompt service by expert’s servicemen, quick delivery
at doorstep, prompt attendance of workers etc.
5. Time to buy objection
Prospect may say he doesn’t want to buy now or he is not
interested in the product at present.
Handling Objection
Emphasize value of time and induce them to purchase now. In
some specific cases he can say that in the near future price is going
to rise or the new model will be too costly or the new model will
enter the market after a long period and so on.
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
4. Responsibilities of the sales executive and the degree and level of
coordination he has with the Product / Brand manager
Responsibilities
1. Sales Program
He takes initiative in establishing short term and long-term sales
goals of the division and in collaboration with other marketing
executives gets sales, profits, growth and other goals.
2. Organisation
Sales Manager establishes an effective plan of organization and
methods of controlling the activities of members of the sales
organization that will provide sufficient time for carrying out the full
time of departmental responsibilities.
3. Sales force management
Sales Manager identifies promising sources for recruitment of new
sales personnel and sets standards for selection of the most
promising new personnel from among recruits. He ensures that
sales personnel are properly motivated so as to achieve optimum
sales performance.
4. Internal and External relations
He develops effective working relations with other department
heads and the general manager so that significant sales
development can be translated into appropriate course of action.
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
He maintains relationship with key accounts as well as with sales
and other key personnel.
5. Communications
Sales manager keeps the vice-president of marketing informed on
sales result and future plans of operations. He also develops a
system of communication with other sales personnel that keeps
them informed of overall departmental sales, objectives, results,
etc.
6. Control
Sales manager consult with production manager so that production
rates and inventories are geared as closely as possible to actual
sales need.
Relation With Product Manager
Executives responsible for product planning and the formulation of product
policies make numerous decisions. Periodically, each product in the live
needs appraising in terms of its profitability and its ability to fulfill buyer’s
wants. When products come up for review, decisions are made on whether
each should be retained, changed or improved, or dropped from the line.
Other decisions are made on adding new products, on changes in product
design and other product features. Still another product decisions concern
product quality, services rendered in connection with product sales and
packing.
Product decisions are often a shared responsibility of marketing, production,
research and development and financial executives provide important inputs
for such decisions. Their continuous contact with the market through
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
subordinates and sales personnel provide them with feedback about product
performance and acceptance generally not available from other sources.
5. Recruitment Process, Selection, Training (content, faculty, duration)
and compensation strategies for the sales force.
Recruitment
It is the process where the prospective candidates are found and encouraged
to apply. The aim is to attract potential salesmen to fill up vacancies. It is an
end less job. The appointment of right person possessing all qualities of good
salesmen is important and it depends on a sound recruitment policy. Good
recruitment policy builds a stable working force and helps in achieving goals
in a systematic and planned way.
Sources of recruitment
1. Internal
2. External
Internal Sources.
i) Promotion of employees: Sincere and hardworking
employees in organization may be promoted to fill up the
vacancies.
ii) Former employee’s re-employment.
External recruitment:
i) Advertisement
ii) Employment exchanges
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
iii) Recommendations
iv) College and School
v) Competing Firms
vi) Non- competing firms
vii) Self-offers
viii) Wholesalers, retailers and customers.
Selection
It is the process of choosing some out of the total candidates provided by
recruitment. The main aim is to find out the most suitable candidate and leave
out misfit candidates.
Methods of Selecting salesman
1. Requisition
Salesman has to send a requisition to the personnel department stating
the number of candidates required and their job specifications.
2. Recruitment
Either through employment exchanges or through newspapers
advertisements or through any other media.
3. Application Blanks
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
It is a written formal application submitted by the person in search
of a job. It required
i) Personal datasheet
ii) Job description sheet
iii) Man specification sheet.
4. References
The candidate is required to give two or three references. The sales
manager has to check the references mentioned by the candidates.
This he can do by asking the persons stated or reference, to send
confidential report about the candidates, sometimes telephone calls
or direct face-to-face enquires can be made to references which
reveal the true information about the candidates.
5. Preliminary Interviews
It is used to leave out misfit candidates. The panel of experts
decides the number of candidates to be called for the interview. The
candidate is interviewed by a committee to judge his suitability for
the job.
6. Psychological Test
To test ability, skill, emotional attitudes, behavioral patterns and
aptitudes. There are various types of tests such as intelligence test,
personality test, aptitude test, capacity test etc.
7. Physical examination
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
A Salesman is required to possess a standard good health. A
candidate suffering from any physical defect or deficiency is out
rightly disqualified. A candidate having a poor health becomes
burden for organization.
8. Final interview
All information regarding qualification, experience, reference,
physical test, psychological test etc. helps the selection committee
to arrive at a final decision. During final interview candidates are
asked some crucial questions regarding their willingness to accept
the job, their responsibility whether they want to continue or not etc.
Finally, if the selection committee is satisfied about the candidate,
he is selected for the appointment.
Training of Salesmen
1. To improve the performance.
2. To influence people in a better way.
3. Provides expert knowledge.
4. Reduces wastage.
5. Brings more income.
6. Reduces control and supervision
7. Develop high morale.
Method of Sales training
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
1. Initial Training
It is given to candidates on their admission to the organisation to
introduce salesmen to organisation and various sales policies.
2. On the Job Training
Salesmen are given opportunity of performing the role of a
typical salesman. Such training is made under the supervision of
senior salesman. It enables salesman to know correct method.
3. Schools and Colleges
Some big organizations have training centers. Small firms may
admit their trainee Salesmen into schools and the colleges,
which impart coaching in salesmanship.
4. Correspondence Training
It is adopted where salesmen are widely scattered and training
needed by them is not very important. The training materials
with necessary instructions are sent to the trainees by post
regularly. It is just like postal coaching and perhaps the easiest
and cheapest method of training salesmen.
5. Sales meeting and conferences
They are held at regular intervals like weekly, monthly or even
half yearly.
6. Sales manual
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
They contain information about the organisation, its history, its
policies, particulars of products, advertising etc.
7. Visual Training
Visual Training programmes are imparted with the help of slides,
black boards, graphs, models etc.
8. Role Playing
Under this method a play is presented on stage so that the
trainee salesmen is able to gain enough knowledge. After the
drama is over, a general discussion can be made and newel
recruited salesmen can be given necessary instructions.
9. Brain storming
Five or seven trainee’s salesmen are grouped under the
chairmen ship of an experienced salesman. The chairman gives
problems to the trainees and the trainees try to find out the
solutions to such problems and write the same on the notebook.
Remuneration method
1. Straight Salary Method
Salesmen are paid a certain amount as salary like other
employees. Salary is paid on the basis of time and not on the
basis of sales. There are three elements in a straight salary
method of remuneration.
i) Salary
ii) Allowances
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
iii) Increments
2. Straight Commission Method
Remuneration is paid on the basis of amount of sales made.
This method is; effort oriented’ and is based on volumes of sales
made. The salesman is paid commission on the basis of a
predetermined % of net sales or profits.
3. Salary and Commission method
The sales force is entitled to a fixed salary and commission. The
salary element gives the salesman the necessary security and
comfort. The commission element is meant to reward hard
working and efficient salesman who put such effort to increase
the sales volume.
4. Salary, Commission and bonus method
The salary is paid for certain specific duties performed by the
salesmen. In case the salesmen put such effort or sells and a
predetermined limit, he is paid commission and / or bonus. It is
meant for the results over and above certain satisfactory level of
effort.
5. Performance appraisal system and method
The purpose of a performance review is not only to help the
employee understand what is expected and how she or he is
doing relative to these expectations, but also to increase
productivity and company loyalty. Performance reviews done
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
properly also reduce the chances that an employee terminated
for performance problems could successfully sue the company.
Seven steps can help you discuss performance with an
employee:
1. Listen to your employee’s self-appraisal before offering an
evaluation. Then give a balanced picture of an employee’s
strengths and weaknesses from a written document that has
been carefully prepared.
2. Analyze what you arte going to say. You want to be tactful
and sensitive remember, your job is to motivate, not destroy.
3. Discuss differences and offer specific suggestion on how to
capitalize on strong points and improve weaknesses work
with the salesperson to develop realistic goals.
4. If a disagreement occurs listen closely and ask for specific
facts. Don’t become defensive. State your position directly
and clearly. Don’t allow an emotional situation to get out of
control.
5. Review should never contain surprises. If you constantly
reinforce and give feedback on a regular basis, no one will
be surprised. The appraisal is a chance to fine tune.
6. Don’t become therapist! If any personal problems surface
during the discussion that need more professional help,
listen with empathy, then help them find appropriate help.
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
7. Don’t tie salaries or bonuses directly to the review person’s
performance, but also on the financial conditions of the
company, the economy and what the competition is doing. If
you incorporate money with a review, the employee may
have expectations that you are unable to meet. Ensure your
employee understands that compensation decisions include
review results along with many other factors and that the
review alone is not the basis for salary and bonus action.
Following up Three Suggestions
1. Written Records
Once the performance appraisal discussion has been concluded
a manager should immediately make a written record of:
a. The overall appraisal for the previous period;
b. Plans that both parties agreed to;
c. Any personal commitments requiring specific action.
A copy of this summary should be given to employee.
2. Reflection
Following each review is a good time to review your
performance is leading the discussion. Some good questions
are:
a. What was done well?
b. What was done poorly?
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
c. What will be done differently next time?
d. What was learned about the employee?
e. What was learned about self and job?
3. Follow through
A third element of follow up is to insure that agreements are kept
and plans followed. If this is not done, the entire appraisal loses
its impact and the employee assumes no one cares very much
about performance. This phase of the follow up is the initial
phase of the next appraisal.
7.Basis for formation of sales budgets and sales
forecasting.
Sales budget is a blueprint for making profitable sales. It details
out how much of what is to be sold during the operating period
and by whom, to what customers are classes of trade.
Defined in simplest terms, a sales budget consists of estimates
of an operating periods probable rupee and unit sales and the
selling expenses invested in obtaining these sales.
Sales budget is a projection of what a given sales program
should mean in terms of sales volume and net profits.
Both the sales- volume and selling expenses portions of the
sales budget have their roots in setting of personal selling
objectives which results in the two key decisions on personal
selling strategy:
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
1. The kind of sales personnel
2. The size of the sales force.
The sales forecast is the general source for the sales
volume portion of sales budget. The sales volume
objective, derived from the sales forecast, is broken down
into precise details as to the quantities of products that are
to be sold, the sales personnel or sales districts that are to
sell them, the customers that are to buy them and the
quantities that are to be sold during different time segments
in the operating period.
Once these breakdowns have been, them estimates are
made of the selling expenses that will be incurred in
implementing this sales program.
The sales budget then uses the sales volume objective.
Consequently, the extent of involvement of top executive in
the early phases of budgeting depends upon the degree to
which the executives participate in the forecasting program.
Format of Sales Budget
roduct/Region North
East
Mid
West
West South Total
A 80 90 70 80 320
B 60 60 50 75 245
C 45 35 25 30 135
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
8. Reporting Format and frequency:
Every firm has its own ways to communicate between sales
representative and sales office; the choice of method is the
responsibility of management. It is however very much in the
interest of salesman that such communication should be really
adequate and a vital part of his work is to ensure that it is
maintained. Sales reports are necessary for the following four main
reasons:
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.
If 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 well-trodden path of habit. The wise salesman, therefore,
sets aside a specific time of day to write his reports. He allows himself
perhaps an hour or an hour and a half each evening for this purpose. Many
salesmen prefer to allow themselves an hour or so in which to have a meal
and ‘unwind’ before they settle down to write their reports.
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
Since sales representation may be regarded as a profession, one cannot
expect to work a nine-to-five stint and then finish for the day. The salesman is,
of course, entitled to his leisure and providing he organizes himself properly,
he can have and enjoy it. The work he does, however, is not dull routine.
To write lucidly, one must first marshal one’s fact. It helps if you have a logical
mind. If 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. Sentence should be as short as
possible. 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.
Do not assume that the reader is immediately familiar with the detail of the
situation. Ensure that each report contains a brief reference to the existing
situation before the new information is provided. Differentiate clearly between
what has been stated to you by the customer as facts and what is only your
own interpretation of the facts.
If a customer has given you information, which he has asked you to treat as
confidential, state this in the report.
The Format
The first paragraph of your report should state the purpose of the visit. Many
salesmen overlook than fact that their calls should have a specific purpose.
Every 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.
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
The second paragraph should deal with the main subject of your visit.
Succeeding paragraphs under suitable sub headings. Should deal with any
other items discussed. Opinions and comment on the part of other should
generally be kept to the end and entered under a suitable title such as
‘Remark’.
Finally, the actions required 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. Each
action item should be numbered.
9. Size of sales force
It is difficult to determine the exact number of sales persons that a
particular company should have. Three basic approaches in
approximating this number are:
1. Work load method
The basic assumption is that all sales personnel should
shoulder equal work load involved in covering the
company’s entire market, then divides by the workload
that an individual shall handle, thus determining the
total sales people required.
Steps involved in this approach
a. Classify customers, both present and prospective
into sales-volume-potential categories.
b. Decide on the length of time per sales call
frequencies on each class.
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
c. Calculate the total workload involved in covering
the entire market.
d. Determine the total work time available per
salesperson
e. Divide the total work time available per
salesperson by task.
f. Calculate the total number of sales people needed.
This approach is attractive to practicing
sales executives. Large firms like IBM and
AtandT have used this approach.
2. Sales potential method
It 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. Dividing this amount, into forecasted
sales volume-the company’s sales volume objective-and
allows for sales force turnover results is an estimate of
the number of salesperson needed. These relationships
are summarized in equation
N=S/P (1+ T)
Where
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
N= number of sales personnel units
S= forecasted sales volume
P= Estimated sales productivity of one sales personnel
unit.
T= allowance for rate of sales force turnover.
3. Incremental method
4. Conceptually it is the best approach to determine sales
force size. It is based on one main proposition; net profit
will increase when additional sales personnel are added
if the incremental sales revenues exceed the
incremental cost incurred. Thus, to apply this method,
one needs two important items of information
a. Incremental revenue
b. Incremental cost
Although this method is the most conceptually correct, it
is also the most difficult to apply in the real world.
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
The Comparative Data Presentation
Most of the aspects we could find the difference and The commonalities
among the organisation have been highlighted by different font
VARIABLES TATA
TELECOM
ABB HCL
1. Relative
Importance
Given To
Personal Selling
HIGH
Reason:
They
customize
their
Switching
devices
based on the
requirement
& understand
the customer
more.
MEDIUM-LOW
Reason:
They don’t
customize much
as the product
goes as a part
of large turnkey
project.
VERY HIGH
Reason:
They have an
aggressive
marketing strategy
and want to clinch
the deal at any
cost.
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
VARIABLES TATA
TELECOM
ABB HCL
2. Selling
ObjectiveSelling
objectives of
Tata telecom
are:
a) Emphasize
overall benefit
of customers.
b) To reach
out and
obtain new
customer.
c) To”
service”
existing
accounts i.e.
to maintain
contact with
Selling
objectives of
ABB are
a) Emphasize
on high quality
of work
b) Emphasize
overall benefit
of customer.
c) To keep
personal selling
expenses within
set limits.
.
Selling objectives
of HCL are
a) High market
share
This was very
clearly understood
from their top down
and challenging
quotas, budgeting
etc.
b) To obtain sales
volume in ways that
contributes to
profitability.
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
VARIABLES TATA
TELECOM
ABB HCL
present
customers,
take orders
and so forth.
d) To keep
customers
informed on
changes in
the product
line and other
aspects of
marketing
strategy.
c) To secure
targeted percent of
certain accounts
business
3. Key Objections
Faced By Sales
People
Most of the
problems are
faced in
providing
Do not face
much problems
because of the
high quality
Tough to meet the
targets
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
VARIABLES TATA
TELECOM
ABB HCL
after sales
services.
Some of the
problems are:
-
Relating to
repair
Delivery of
goods
Timely
attendance
of the worker
Solution:
47 authorized
service center
all over
country and
on an
average
Two centers
standards
Solution:
Nothing
apparent as
such
Solution:
No steps taken as
such.
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
VARIABLES TATA
TELECOM
ABB HCL
are within the
reach of 2
kames.
4. Sales Division Sector Wise
That is for
example to
target the
hotel industry,
or railways, or
hospitals etc.
Reason:
The sales
person
becomes
experienced
Revenue based
That is amount
of profit you are
obtaining from
the customer
Reason:
Less number of
customer and
due importance
is given.
Geographical
Region wise
Reason:
High customer
interaction is
essential.
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
VARIABLES TATA
TELECOM
ABB HCL
in the field.
5. Tracking
Competitor’s
Track
Competitors
actively from
-Orders won
-Business
magazines
- Journals.
They also
consider market
behavior and
extract
information from
customer.
They maintain
competitor analysis
report.
6. The way they
use competitors
information
-Pricing
strategy
Competitors
information is
very useful for
pricing
strategy .The
basic reason
behind is to
be L1 that is
- To
defend
ABB s Sales
manager feels if
you have to
defend the
competitor then
you must know
him
- To be more
competitive
in the
market.
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
VARIABLES TATA
TELECOM
ABB HCL
to get the
tender
passed first
criteria is to
quote lowest
price (they
call it L1).
- To
understand
new strategic
trends.
- To make
strategic
plans.
They too
make use of
competitor’s
information
for pricing
strategy and
other
strategic
planning
7. Recruitment They prefer They prefer They prefer
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
VARIABLES TATA
TELECOM
ABB HCL
Policy
- MBA
-B.E.
-B. Tech.
-MBA
- B.E.
- B.Tech
8. Quota System Combination
Quota: -
They use
combination
quota to
control the
sales
performance
of both selling
and non-
selling
activities. By
Rupee sales
volume quota:
- They use
rupee sales
volume quota.
As by their
opinion Sales
volume quota
communicates
management’s
expectation as
to “ how
Combination
Quota:
They use this to
control the sales
performance Also
they follow net
profit margin quota
sometimes as they
emphasize more on
net profit out of a
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
VARIABLES TATA
TELECOM
ABB HCL
adopting this
type of quota
system they
monitor both
revenue
generation as
well the as
the no of units
sold out
Since the
performance
against
combination
quota is
measured as
%, it is also
known as
Point System
Quota. It is a
combination
of sales
volume goals
and activity
much for what
period”.
A key
advantage of
Rupee sales
volume quota is
that it is easily
relatable to
other
performance
data such as
selling
expenses,
through
computing
ratios or
percentages.
transaction
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
VARIABLES TATA
TELECOM
ABB HCL
goals.
9. Training Need
identificationUsually
training is
imparted
whenever
there is
introduction of
new
technology.
Company
feels that in
today’s
competing
world
technology
keeps on
changing and
whenever
such a
change
occurs
training is
Boss gives a
report of his
observation on
the weakness of
individual i.e.
based on his
dissatisfaction.
In ABB the boss
keep track of
the sales force
and whenever
he feels that
training is
needed he refer
it to the training
department.
The groups head
identify the needs
of each person
reporting to them
pass it on to the HR
for further action.
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
VARIABLES TATA
TELECOM
ABB HCL
imparted to
employees.
10.Performance
Appraisal
System
-70% based
on
tenders/order
s won.
-20% based
on tenders
participated
-10% based
on new
customers.
Fix up a
performance
standard and
compare with
that.
- 40 %
based on
Number
of new
customer
.
- 30 %
Number
of
customer
complaint
.
- 30 %
based on
winning
Do not fix any
performance
standard and follow
PMS (Performance
Management
System)
In this system the
Top management
identifies up some
KRAs i.e. Key
Result area s.
These are the
areas in which the
organisation has to
emphasize more
and these are the
area where less
effort will give you
more benefit. Then
as per these KRAs
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
VARIABLES TATA
TELECOM
ABB HCL
the
tenders
each individual
employee has to fix
up their own CSI
i.e. Critical Success
Indicator .The
achievement of
these CSI will be
the stick yard of the
performance of the
employee.
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
Perception Gap between the management and Sales force
While interacting with the sales personnel and the manager we could find out
the differences between their opinions as well the way manager perceive the
things, his approach and way of behavior is remarkably different than his
sales people.
We would like to state following few things regarding this
1. Performance Appraisal system: The major and most usual
complaint we came across is about the performance
appraisal. Though all of them have devised a matured
performance appraisal system based on quantitative
techniques what sales people say that they are actually
nowhere. What actually matters is “ How you tackle your
boss”
2. Tracking Competitor: Though the manager gives lot of
importance to competitors information we could hardly find
that seriousness at sales man side
3. Training: Another area of anomaly is training need
identification. Though management is satisfied about the
training imparted to sales people what they say is training is
like an unpredictable weather and comes and goes. They are
not really aware how relevant and useful are they except few
of them.
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
Recommendation
1. Redefining performance appraisal system:
From result oriented platform to effort oriented platform
Though most of the successful organisation practices MBO (Management by
Objective) and considered as highly result oriented but what we personally felt
that this affect organizational culture as well demotivate sales people. Since
sales activity are highly quantifiable 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.
2. Training must be made a continuous process
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 don’t learn or learn it in a hard way .It is of prime responsibility of
management to ensure quality training to the sales personnel.
COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL
LIMITATIONS
1) We could not get the sales report format as it was confidential
2) We could not get detail information about the size of sales force.
3) It was very difficult to get access in the company and we had to wait for
a very long period of time.
4) We could not get the questioner filled in front of us so for that we had to
move many times in the company which took a lot of time and effort.
5) The three companies are situated at distant places from each other i.e.
in NOIDA, GURGAON and in KALKAJI, which again was a big
limitation.
6) Most of the sales force was in the field so it was very difficult to track
them.