Company BackgroundUnder Central Retail Corporation Ltd.

1st Electronic Retail Store in Thailand (1996)

Over 60 Branches around Bangkok

Market leader in selling almost all electronics

Mission: In the world of technology, choices are endless, taking into

account the best interests of the client.” - Price, Quality, Selection, Service.

Company AnalysisProduct

1. Mobile phones 2. Camera 3. Computer 4. Memory Media 5. Visuals6. Audio 7. Home Appliances 8. Small Appliances 9. Offline Automation 10. Music11. Accessories

Price - Good price guaranteed , range from 249-90,000 Baht

Distribution- Hypermarkets & Department stores (64 Branches) - 18 new branches by end of 2011 - Import: Thai Customs Department - E-commerce & Call center

Promotion - Budget 60 million Baht - 30% discount - Power Buy Expo 2011 - First Choice with Krung Sri - Price Guarantee & Gift Vouchers

Competitor Sales Unit Analysis

Amorn Electronics Centre Power Mall

Chapter 2: Sales Force’s Strategic RoleMission: to be the market leader & sell variety of electronics

Every department is involved in strategic & business planning

Objectives of sales department: high sales, build relations with customers

Incentives for high sales, different branches have different sales goals

Differentiation Strategy: promotions & after sale service (3 plus service)

Chapter 2: Sales Force’s Strategic Role

CRM: The 1 Card

Transactional Relationship

Credible & Reliable: Under CRC Group

Good in-store atmosphere & variety in product offerings

Target Market: Males & Females with an interest in electronics, B+ group,

Chapter 3: Territory ManagementCustomer contact: Database from 1 card used to SMS & send brochures

Call center & Facebook

Face to face selling is most effective

Through technology they are informed first of latest products

Power Buy provides the latest electronics

They sell to profit/non-profit organizations, government at special discount

Timewaster for sales people: consumers take very long to make decisions

Chapter 4: Account ManagementCustomer feedback:

- E-mail - Call center - At the store itself - Company website - Facebook page

Promotion is the most important factor that influences consumers purchase decision

Supplier Selection: - High quality products - latest trends that customers want - Purchase from many to give customers variety - “Win-Win Situation”, suppliers get large orders, power buy get variety

Chapter 5: The Sales Presentation Training Programs for sales people

- to be professional during sales presentation - have product knowledge to be credible

Source of extra customer information - Customer Survey: Focus groups & Face-to-face interviews - Compare with past data to see changes in attitude

Tactics to close the deal - Promotions: Special discounts - “Deal/product is available only for limited time period”

Chapter 6: Sales Force Structure Sales Force Organization

- A manager (SGM) dives sales forces into departments - Each department is called an operations team - Operations team divided based on product classification

Power Buy uses specialization Pro: ensures that the product line receives desired level of selling effort Con: no knowledge about other products

Chapter 6: Sales Force Structure No major problems due to current organizational structure

However sales person from one department may appear arrogant when they can’t answer questions about a product of another department

Strategic Account Selection - All accounts are treated equally - All people are their potential customers

“Existing Sales Force”: Focus on closing the deal & gaining revenue rather than build relationships

Chapter 6: Sales Force Structure

Product Consultants (PC) instead of independent Sales Agents

The functional area that the sales force interacts with the most is engineering (merchandising) department

Marketing and Logistics (DC) Departments act as support systems

Chapter 7: Salesperson Recruiting & Selection

Hires based on geographic location of the branches of Power Buy

Recruitment Sources: - websites like www.jobsdb.com - Internet banner advertisements - employee recommendations - notice boards on construction sites of new branches - Job fairs

Salesperson Characteristics: - Good personality - Confident in talking to customers - Service Minded - Neatly dressed - Good grasp of Thai language

* All recruits go through a training program

Minimum requirement: Bachelor’s Degree for COD, product department level

Chapter 7: Salesperson Recruiting & Selection Lowest turnover rate among subsidiaries under CRC umbrella - Trustworthy company - Employees enjoy their jobs (new products) - Financial aid

Provides aid to flood victims

Does not tolerate drug abuse or fraudulent behavior

Promotes ethical behavior and integrity

Chapter 8: Sales Force Development Main objective of sales training is to give product knowledge

High Product knowledge makes a sales person look credible

This helps to improve customer relations

Use field training for Operations team

On the Job Training (OJT) - learn through experience with individual customers - training sales person to become product expert

Decentralized Training - learn about specific products and are involved in sales management

Chapter 8: Sales Force Development

Sales Volume to evaluate success of performance

Follows up on new sales, because sales force represents the company and their bad behavior can ruin the image of the company

Chapter 9: Leading a Sales Force

The top management consists of some very good leaders

The leaders motivate the employees using “reward power”, commissions are given based on sales

Friendly relations with employees

Take care of employees “Help Smile project”

Use “Selling leadership style”

The leaders have qualities like vision and empowerment

They act as role models, build trust & give genuine feedback and coaching

Chapter 9: Leading a Sales Force

Team Building: - Categorize sales force into 3 groups - AV group, Home Appliances, IT Products - Each team is coached by a product manager

Sales Meetings: - Sales & Marketing teams come together to brainstorm - They discuss the meeting objectives and budget

Power Buy holds monthly and semi-annual seminars to raise awareness of the policies against sexual harassment & alcohol/drug abuse

If found guilty a person’s employment is terminated

Chapter 11: Sales Force MotivationMotivate sales people through incentives:

Financial incentives: - bonus - commission - increase in salary - other monetary rewards based on individual sales performance

Social incentives:

- promotion: higher position in sales department - status and recognition through awards like best employee of the year

Chapter 12: Compensating the Sales ForceSales person of the year: gets all

expense paid trip with his/her family abroad.

Bonuses and commission based on sales performance and targets

Power Buy also adjusts commission rates to boost sales of individual products

Team Selling/ Project sales - to sell to government parties and business sectors.

Operations Team/ Sales Force - receives the most incentives when compared to any other department because they contribute to the firms revenue.

Chapter 13: Sales Person Performance EvaluationQuantitative Evaluation of Performance: - Solely based on sales targets achieved and accounts closed - Sales figures are used to judge of sales targets have been achieved

Sales person evaluated more on performance (output) rather than behavior(input)

Commissions bonuses and raises are given based on sales performance

However good behavior (input) is encouraged through positive feedback.

Career consultations and advice is given to those who have good sales performance but are behind the race in the social aspects of the job.

ConclusionMain CRM: The 1 Card which creates loyalty

Differentiates through credit sales & after sale services

Transactional relationship with customers

Customer feedback: E-mail, Call center, Store, Company website Facebook

Two tactics to close the deal: Special offer and limited time for product

Sales force/Operations Team is divided into 3 product-specialized divisions

ConclusionHas lowest turnover rate

“Help Smile Project”

Field & OTJ Training

Selling Leadership Style

Incentives based on output/sales

Recommendations 1.) Motivation Programs Based Effort-Performance Relationship Model

2.) Power Buy should also introduce behavior-based evaluation of sales force

3.) If benefits > cost hire Independent Sales Agents

4.) If benefits < cost then stop out sourcing and use internal salespersons

5.) Should consider going through accounts to determine who are the regular buyers

6.) Focus on developing a long term transactional relationships

7.) CRC & Power Buy should collaborate to create special loyalty program that gives the 1 card holders special customer experiential management