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LETS PRINT AT HERITAGE PRINTING
(2014)BY
KEITH KACHIKIRA
(STUDENT ATTACHEE)
1
June 2, 2014SALES TACTICS PROPOSALS
EXECUTIVE SUMMARY:
In this project my aim is to part my strategies which the company can use in order to maneuverthe
rough printing terrain. I plan to establish various selling strategies by inducing sales
management
techniques and marketing principles aligned with a printing company. It must show the industrial
analysis, capitalization, human resources management, the possible segmentation strategies,
potential
in the printing industry, costs and revenue, how affect our day to day lives, and the type of
competition we face from different types of organization.
This project aims to emphasize on the strategies Heritage Printing Pvt. Ltd, can carry out in thisvast,
dynamic, and ever changing environment. These strategies must have an impact in
various
dimensions of the printing industry. The printing industry has been hammered by cheap
imports
from manufacturing companies in countries like China, and South Africa who use
advanced
machinery and an inexpensive labour market as an operating advantage. Of late the industry
has been
affected by substitute services like internet accessibility which is getting cheaper by the day;
hence
book users turn to use an alternate of e-learning. Easy Internet access affect the printing
industry in
the sense that, the client cuts cost on things like transportation, on paper material, overprinting,
and
unsold stocks.
2
June 2, 2014SALES TACTICS PROPOSALS
TABLE OF CONTENTS:
1.
2.
3.
4.
5.
6.
7.
8.
Executive Page ………………………………………………………………………………………………….
2
Table ofContents…………………………………………………………………………………………
Background…………………………………………………………………………
………………………..
Statement of
Problem……………………………………………………………………………
………
SWOT
Analysis……………………………………………………………………………
……………..
Sales
Objectives…………………………………………………………………………
…………………
Human Resource
Management………………………………………………………………………
Technical approach to
selling……………………………………………………………………….
3
4
4
5
6
7
8
8
9
10
10
11
13
13
14
14
14
15
a.
b.
c.
d.
e.
Sales teamactivities………………………………………………………………………….
Strategic
Planning……………………………………………………………………
………..
Strategic Management
Planning…………………………………………………………
Factors Influencing Strategic
Planning……………………………………………….
Strategic Marketing
Planning……………………………………………………………..
9. Strategic Sales Force Decisions……………………………………………………………………..
a. Market
Access……………………………………………………………………………
……….
b. Account Relationship
Strategy……………………………………………………………
Budgeting………………………………………………………………………………………………………
a. Estimated SalesBudget……………………………………………………………………….
CompetitorAnalysis…………………………………………………………………………………….
10.
11.
3
June 2, 2014SALES TACTICS PROPOSALS
BACKGROUND
Heritage Printing is a printing company that was incorporated in February, 2013. Its mainbusiness
lies in printing of newspapers, and books, plus small jobs like outsourcing fliers, brochures and
so on.
We have a management department, sales department and production department who all deal
with
the day to day success of the company. We employ an average of 35 subordinates on their
payroll.
Challenges facing the company includes a drastic shift in the technological advancement whichhas
left many manufacturing companies in Zimbabwe lacking, all this because of harsh economic
conditions which has crippled most manufacturing industries not sparing the printing industry
as
well.
STATEMENT OF PROBLEM
Heritage Printing is currently facing a crisis in the sales department. There are various issues
affecting the sales department as a whole. They range from a lack of resources to socio-cultural
problems emanating from our different backgrounds we come from. The economic environment
is
currently under the thumb of limited money supply. This is where the market leaders arise and
take
form. They must maneuver, show a positive attitude, be innovative, be creative, work hard and
make
crucial decisions in order to win businesses which will help sustain the company in the long run.
Heritage printing is no exception. What is needed is shire hard work which will lead to success.
4
June 2, 2014SALES TACTICS PROPOSALS
S.W.O.T ANAYLSIS:
STRENGTHS:
1.
The biggest and most notable strength we have as a company is the Manugraph WebPrint.
With this machine we have unlimited potential and the machine is one of the best in
the
industry we operate in.
We also have a decent enough finishing department.
The origination department is a pretty decent one too, with the machine they use being
one of
the best around.
Heritage Printing possesses one of the most skilled laborers in the industry. Especially inthe
production department.
2.
3.
4.
WEAKNESSES:
1.
Print Magic Sheet-fed is operating below market potential. Most of jobs available inthe
market are usually performed on the sheet-fed. Right know it is under-utilized
henceforth
making it almost docile.
A large wage bill with very scarce money resource in the environment we operate in.
This
leads to lack of motivation for the workers who expect to be paid.
Heritage Printing is operating under a shoestring budget, due to the harsh economic
environment.
Relatively unknown in the market.
2.
3.
4.
OPPORTUNITIES:
1.
2.
3.
The printing industry was forecasted to grow by 30% as at August 2013.
Most printing companies don’t have the Manugraph Web-
Print.
There is a gap in the digital printing market.THREATS:
1.
2.
3.
4.
Constant competition in the form of cheap import services from overseas, particularlyChina.
Absolute machinery.
Rising client
expectations.
Tight-fist economic environment, with clients refusing to let go off their hard
fought
earnings.
Companies closing down rapidly to which we get most of our printing business.
5.
5
June 2, 2014SALES TACTICS PROPOSALS
SALESOBJECTIVES
1.
2.3.
Guarantee a sale of us$20,000 per month for each individual
Use the income generated by the sales team to pay for a new Nissan NP200 vehicleCreate top of the mind awareness for Heritage Printing amongst our client base as the company of choice through promoting brand management.Create a loyal client base from the current list which includes Patriot, ZPH, and theMirror. Obtain 2 or 3 major clients which helps sustain continuity of our business.Improve turnaround time of quotations and delivery of products to ensure service quality.
Ensure a steady growth pattern of 30% new business per month from the salesteam. Generate new businesses at least one or two more clients per month.
Channel in horizontal integration. For example Heritage Printing and an Origination
company of our choice.Market Heritage Printing as a brand since we are relatively new in the industry.
4.
5.6.
7.8.9.10.
6
June 2, 2014SALES TACTICS PROPOSALS
HUMAN RESOURCE MANAGEMENT
HIERACHY OF NEEDS:
As for achieving the maximum potential of a sales team, Heritage Printing has to appreciate the
above diagram. With a highly motivated sales team, the organization has an opportunity to
fully
utilize the employee and laborer so that they can access the market potential simply because
morale
would be boosted to the pinnacle.
7
June 2, 2014SALES TACTICS PROPOSALS
TECHNICAL APPROACH TO SELLING
SALES TEAM ACTIVITIES:
Administrative
Plus or minus 25% of time.
(a)
(b)(c)(d)
Training
Preparation of budgetsExpense control
Administration of compensationprograms.
Consultation with sales representative performing below standard, consultation, personalcounseling,
or assignment to a new territory can improve the performance of many of these people.Account service/Coordination
Up 17% of time may be spent servicing accounts. Sales representatives will act as customeradvocates
and ensure that their needs are met. Coordination of customer needs with suchdepartments as production.Travel
Plus or minus 15% of time. Reason for travel is to keep in touch with conditions in the field, tohelp
close important sales, and to observe and train field sales representatives.Meetings(internal)
Plus or minus 14% of time. It is important training and offering motivational tools for field representatives.
8
June 2, 2014SALES TACTICS PROPOSALS
STRATEGIC PLANNING
Key sales force decisions are made within the limits set by the organization. Strategicmanagement
planning consists of the steps taken by the Heritage Printing to ensure long term survival and
growth
of the business. Strategic marketing planning involves the allocation of resources to programs
designed to achieve specific marketing objectives derived from the Heritage Printing`s overall
objectives.The sales force strategy is derived from the marketing strategy and includes decisions abouthow to
access the target market and the type of relationships the company will have with its
customers.
Finally the strategic plan must be converted into an operating budget.9
Operating budgets Promotion
Selling expenses
Sales force Market access strategy
Strategy Account relationship strategy
Strategic Situational analysis
Marketing Segmentation and target marketing
Planning Marketing mix program
Strategic Mission
Management Goal
Planning Strategy
June 2, 2014SALES TACTICS PROPOSALS
Budgets will help the sales team perform a more thorough job because we will be working in
guidelines, or targets, to which it will be easier to achieve objectives. Actual results can be
compared
with figures and any changes in the objectives and strategies planned for the subsequent period
can be
recommended. STRATEGIC MANAGEMENT PLANNING
It consists of the steps taken by Heritage Printing to ensure long term survival and growth ofthe
business. It is an assessment of the outside environment and stock take of the convenience
resources
and competencies in order to chart the best way forward.FACTORS INFLUENCING STRATEGIC MANAGEMENT
10
Heritage Printing`s history and
culture
Sales Force ObjectivesDistinctive
competencie
s
Marketing
Programs
Financial
Technology
Information
Resources
Financial Resources
Personnel
Management
Brand Equity
Environmental
constraints
Legal and regulatory
Demographics
Economic conditions
Technology
Competitive conditions
June 2, 2014SALES TACTICS PROPOSALS
MissionTo efficiently deliver printing services that will capture the country`s heritage.
VisionTo be a world class one stop printing house, providing quality, client value addingservices
Goals
Profits
Sales
revenue
Unit sales
Market share
Survival
Socialresponsibility Strategie
s
(i)
(ii)
(iii)
Low cost
Differentiation
Niche/focus
Basically an organization can employ the 3 mentioned above strategies. As Heritage we cantake on
strategy number one, Low Cost Leadership. This type of strategy will lead the organization to
follow
through by use of lowed prices emanating from low production cost, henceforth lowered prices
in the
market. An example can be that of companies like Printworks, who enjoy economies of scale.
Another strategy can be that of Differentiation. The organization can offer the market a various
range of service products. We can offer services like carton work, flexibles, blow molding
containers,
digital printing, and lithographic printing as well, origination as a separate department. Thoughthis I
admit can require huge amounts of capitalization for it to take place. Finally the organizationcan
Focus, or Niche a market. This may come in the form of newspapers like what we do (Patriot,
Mirror, Business connect and so on) or rather specifically focus of the WebPrint as our niche
market,
since we possess one of the best machines and skilled labour, when it comes to the WebPrint.
STRATEGIC MARKETING PLANNINING
It involves the allocation of resources to programs designed to achieve specific marketing and sales
objectives derived from the organization’s overall objectives. It is a process whereby an
organization
allocates marketing mix resources to reach its target markets.(a) Situationanalysis
Taking stock of where the firm or product line has been, where it is now or where it is likely toend
up in the future. Consider PESTELI factors. Currently the Political situation in Zimbabwe is kind
of
tense at the moment, but the recent introduction of ZIMASSET, by the government has
rejuvenated
fresh hope amongst the business community. The Economic environment is not friendly either.
With
this environment, it makes it more difficult for the sales and marketing team to venture and lose
any
11
June 2, 2014SALES TACTICS PROPOSALS
new business like what we did on MCAZ, and PRFT, as it will become even harder to find new
clients, since firms are finding it hard to operate in the harsh economic environment. On the
Technological front, new machinery is required to move with the current market trends.
Natprint,
Fidelity and Celsys recently acquired a new 6 color sheet-fed machine. Our machinery
particularly
sheet-fed printer will make it harder for us sales man to satisfy market needs as client
expectation
keeps on rising when it comes to quality and turnaround time.
Segmentation and targetmarketing
Market segmentation involves aggregating clients into groupsthat: (i)
(ii)
Have common needs
Will respond similarly to a marketingprogram.It will make marketing easier if we classify our clients into groups like Newspaper clients, Line
work
clients, and Full Colour printing clients and develop marketing programs that would suit each
and
every segment accordingly.
Target marketing will be done by selecting and prioritizing of segments to which they will
market.
Our main priority will be Newspapers since they bring in regular cash flow and can be easily
printed
by WebPrint. Line Work will follow on prioritization as it favors our current machinery in the form
of the Sheet-Fed printer. Lastly on our prioritization will be Full Colour Print work. Each segment
must have a unique marketing program that will serve it and satisfy every need.
Marketing mix program
After identifying specific marketing goals and identifying the target market the third step is todesign
the proper marketing mix- 7P’s which are Product, Price, Promotion, and Distribution. The other
three imply to the service we provide as Heritage Printing to our clients. These are Process,
Physical
evidence, and People.People-In a Printing services marketing framework, people are all directly or indirectly involvedin
the service encounter, namely the firm's contact sales men, personnel and other clients we
offer
services. Due to the inseparability of production and consumption for services which involves
the
simultaneous production and consumption of services, we depend heavily on the ability of
contact
employees to deliver the service.
Physical Evidence- The environment in which the service is assembled and in which the seller
and
client interact, combined with tangible commodities that facilitate selling of the service. The
physical
evidence of service includes all the tangible representations of service such as brochures,
letterhead,
Business cards, signage, internet presence and equipment like banners and a book rack at the
entrance
is vitally needed.
Process- At Heritage the procedures, mechanisms and flow of activities by which the service is
delivered is very important i.e. the service delivery and operating systems including turnaround
time
of quotations and delivery of products. All this and the above should be induced in the marketing
mix
12
June 2, 2014SALES TACTICS PROPOSALS
STRATEGIC SALES FORCE DECISIONS
These include organizing, building, leading and controlling the selling effort. However there are two
decisions in particular which have an important and transcending pervasive impact on these
sales
force issues and an organization’s sales management program.1.
2.
How the company will access its clients
The type of relationships the company wishes to have with its various clients.
MARKET ACCESS
There are several ways Heritage Printing can access the market.
(i)
(ii)
Direct sales force
Distributors- channel members who take title to the offering that they sell to
end
users-functions.
Printbrokers
Value added resellers (external agents)
Catalogue operations (placements in the
Newspapers)
Direct mail
Telemarketing
(iii)
(iv)
(v)
(vi)
(vii)
There is need to analyze customer base. Usually the 80/20 rate exists that is, 80% of the revenue is
generated from 20% of customers (few major accounts and many minor accounts), as the case of
ZPH, and Newspapers. As a result the following are the alternatives to direct sales force.Distributors- Warehousing, breaking bulk, extending credit, providing information andmarketing
the suppliers offer to their customers.
Telemarketing- Customer contacts utilizing telecommunication technology for personalselling
without direct face to face contact. To which we already do as the sales team.
Integration – this may include horizontally integrating with origination companies, or those who
don’t have the WebPrint for jobs they cannot print.
Independent Sales Agents – Not employees but independent business given exclusive contracts to
perform the selling function within specified geographic areas.
Take neither ownership nor physical possession of the goods.
Always compensated by commission.
Often used to develop new markets through a combination of persuasive selling skills
and
technical competence.Alliances - Alliances with other organizations in a joint venture to sell products to specificmarkets
for example conjoining with recognized printers like Sable Press, Lighthouse, and
Celsys for
outsourcing jobs.
13
June 2, 2014SALES TACTICS PROPOSALS
ACCOUNT RELATIONSHIP STRATEGY
Refers to the type of relationship a Heritage Printing intends to develop with clients. It may be
transactional or contractual. A different strategy may be practiced for each client; hence
selection of
the right client for the right type of relationship becomes strategic for both the customers and
the
suppliers of raw materials Transactionalrelationship
One in which the relationship is based on the need for a service of acceptable quality,competitively
priced and a relationship convenient for the buyer. Good transaction relationship involves
and
personal relationship between buyer and seller. Relationship based on trust, bargaining,
value and
meeting or exceeding customer expectations. This is the kind of relationship we have with
clients
such as Patriot, Mirror, and The Voice.BUDGETING PROCESS
goals.
14
Compare actual expenditures with plans.
Estimate personal selling cost needed to reach salesRevise
expenditure
categories.
Request additional funds
as
needed.
Forecast sales.
Design marketing program.
Set Marketing and Selling expenditure levels.
June 2, 2014SALES TACTICS PROPOSALS
ESTIMATED SALES DEPARTMENT BUDGET
Quarter Q1 Q2 Q3 Q4 TOTAL
SALES
Number of Clients 10
15
26
Average Sales perClient
$ 2,235.00
$ 80,000.00
$ 82,235.00T o tal N umbe r o f Sale
s$ 17,881.
00$ 400,000.0
0$ 417,881.
00
Ave r age Co s t P e rSale
$ 1,788.10
$ 26,666.68
$ 28,454.78GR O SS P R O FIT $ 1 6, 092.
9 0$ 29 3 , 3 3 3
. 28$ 3 09 , 426.1 8
O VER HEAD S
Promotional Activities andExibits
- $ 12,000.00
$ 12,000.00Postage and
Frieght- $ 50.0
0$ 50.0
0Fuel $ 2,400.00
$ 2,400.00
$ 4,800.00Telephone $ 1,800.0
0$ 1,200.0
0$ 3,000.0
0Marketing and Advertising - $ 20,000.00
$ 20,000.00Client Entertainment - $ 400.0
0$ 400.0
0Salaries andWages
n/a $ 23,396.00
$ 23,396.00Motor Vehicle
Expenses$ 600.0
0$ 500.0
0$ 1,100.0
0CorporateBranding
- $ 4,000.00
$ 4,000.00Sales Training and
Workshops- $ 1,000.0
0$ 1,000.0
0Research andDevelopment
- $ 2,000.00
$ 2,000.00Other
Overheads- $ 4,000.0
0$ 4,000.0
0
T O TAL O VER HEAD S $ 4,800.00
$ 70,946.00
$ 75,746.00
N ET P R O FIT $ 1 1 , 292. 9 0
$ 222, 3 87 .28
$ 23 3 , 680.1 8
15
June 2, 2014SALES TACTICS PROPOSALS
COMPETITOR ANALYSIS
5 forces ofcompetition
THREAT OF
NEW
ENTRANTS
SUPPLIER
POWERBUYER
POWERCOMPETITOR RIVALRY
THREAT OF
SUBSTITUTES
The 5 Forces Analysis assumes that there are five important forces that determine competitivepower
in the Printing Industry.1.
Supplier Power: Here you assess how easy it is for suppliers to drive up prices. This isdriven
by the number of suppliers of each key input, the uniqueness of their product e.g William
Over, their strength and control over you, the cost of switching from one to another,
and so
on. The fewer the supplier choices you have, and the more you need suppliers' help, the
more
powerful your suppliers are.
Buyer Power: Here you ask yourself how easy it is for buyers to drive prices down.Finding
more clients will reduce the buying power they have. We have ZPH, they yield so much
buying power because they are most probably the most reliable client we have. Currently
leaving them will see use experiencing high switching costs. Even our competitor have
their
reliable client under the 80/20 rule, switching them to come to Heritage Printing will mean
high costs for them, that is why it is hard for us salesmen to lure big clients with big
returns.
Basically if you deal with few, powerful buyers, then they are often be able to dictate
terms to
you.
Competitive Rivalry: What is important here is the number and capability of your
competitors. Currently the number of competitors is very high because the printing
industry
2.
3.
16
June 2, 2014SALES TACTICS PROPOSALS
Currently our competitors in the form of Printworks, Sable Press, Graphtec offerbetter
quality and lowered prices, suppliers and buyers will go there if they don't get a good
deal
from Heritage Printing. On the other hand, if no competitor can offer the kind of service
and
product we can do, then Heritage Printing can often have tremendous strength. So in
order to
outwit our competition, then we have to improve on 3 things, quality, pricing, and
innovativeness to offer a unique gem of a product.
Threat of Substitution: This is affected by the ability of our clients, current and potential to
find a different way of doing what you do. Potential clients may substitute our service and
product for e-books. If substitution is easy and substitution is viable, then this weakens
your
power, henceforth risk losing jobs too.
Threat of New Entry: Power is also affected by the ability of new companies and inparticular
Printbrokers to enter your market. Printbrokers, one room digital printers, and one colour
printers are our main threats, simply because they have little set up costs, or
need low
capitalization to start-up. At the moment we have few economies of scale in place, little
protection for your key technologies, and this is enabling new competitors to quickly
enter
the market we as salesman are supposed to take and it is weakening our position.
4.
5.
kmk
17
June 2, 2014SALES TACTICS PROPOSALS