Tuesday, May 5, 2020
Credibility on Aquasana Sales Force Plan Ã¢â¬ Free Samples to Students
Question: Discuss about the Credibility on Aquasana Sales Force Plan. Answer: Introduction The development of a Sales force plan for the company is aimed at helping the company meet its sales targets. At Oman market, it will help in extending its serviceprovision in the advancement of its mission to provide best-class filtration product that will enable every home to enjoy the great and healthy water. However, it is important to note entering a new market requires an effective marketing strategic plan upon which the company should seek to establish before entering the market. Market dynamics have increased due to increased innovations and development of new products. Due to these changes, many companies are presented with great challenges as increased market dynamics bring about many things, which the company can change as well as those beyond their control. It is important to note that businesses are greatly influenced by the environments in which they operate. Therefore, businesses need to keep a constant check and provide an analysis of the environments within which the market lays. Therefore, an effective analysis of the factors that would influence the sale targets of Aquasana Company at Oman can be done through the use SWOT analysis. In this case, the SWOT analysis helps in analyzing the internal and external factors that can affect the business. The internal factors influencing sales targets, in this case, would be the company strengths as well as weakness while the external factors include the threats as well as opportunities which may also have an influence on the business. The analysis is therefore important as it helps the managers in deciding whether they should take advantage of a new opportunities in the business, deal with changes to your competition operations as well as help in implementing new technology. The company offers water solutions and forms one of the largest leading brands offering pure water solutions for homes. They believe that tasting water and healthy environments are the most important components of healthy living and the overall wellbeing. The company boasts of using the best in class filtering technology as well as innovations to provide maximum reduction in water contaminants globally. Building on the Company Internal Strengths SWOT Analysis, in this case, will help the company to achieve the following benefits: Identify areas of the business that are performing well, which is very important as they form or establish the companys competitive advantage. The strengths of the company will be important in determining the success of the business in any new market as they generally used a force to enter the new markets. For instance, in the Oman market where there is great potential for the company to succeed and increase its sales targets, the company needs, therefore, to develop and capitalize on its strengths (Bravo-Biosca et al., p.724, 2014). The major company strengths are built on the brand. The company water filters have been certified by NSF to reduce common water contaminants. The company boasts to be the leader in water filtration engineering and innovative technology. The company also offers its customers great benefits of enjoying a variety of products that are affordable and environmentally friendly. The brand value lies in certified 97% chlorine removal and allow the customers to get pure water. The fact that its products are environmentally friendly is a major strength in penetrating new markets, as the products will find favor before the government in terms of obtaining the relevant legislation documents. Conducting a SWOT analysis helps to identify these weaknesses and improving before they become a problem for the company: Product or company weaknesses form part of the internal environmental factor affecting many businesses. It is important therefore for the company before venturing into the Oman market to identify its weakness. Weaknesses do not mean that the company is doing badly but acts as a characteristic that the business is at the disadvantage to others (Bello2014, p.51). One of the greatest weaknesses of the company has been in dealing with waste disposal after filtering the water. However, this has been reduced by ensuring that all company water filter components are made in a way that allow for minimal waste. This is done by ensuring that our reusable outer filter casings as well as filter cartridges are made of recyclable part and compostable materials. Seizing the Opportunities It is also important for the business to take advantage of new opportunities especially in the new markets and maximize them to make greater profits: Some of these opportunities may include an increase in global new consumer trends as well as the daily changes in the markets. Seizing opportunities also create a competitive edge for the business by actively closing any market gap to the advantage of the company. The company has, therefore, a great opportunity to take advantage of the new market in Oman where there is great demand for great tasting and healthy water. Counteracting threats Identification of threats is also important if the company wants to increase its sales targets: Threats, in this case, include all theexternal business factors that could be of problems to the business operations currently or in future. Changes in markets, competitors new advertising strategy and new government strategies can be considered as threats. These, however, can be counteracted depending on the company strengths and weaknesses. The company should also focus on addressing individual issues such as the development of new products, organizational structure, advertising strategy as well as its operational efficiency. SWOT Analysis Strengths - Company brand to offer tasting and healthy water. - Ability to reduce common water contaminants - Filtering engineering and innovative technology - Customer focus - Environmental friendly products Weaknesses - Challenge of dealing with waste disposal - Lack of product diversification though innovation Opportunities - The global new consumer trends - Lack of quality water services in Oman - Lack competitive water engineering and innovative technology in Oman Threats - Competition from existing companies - Unfavorable government regulations - Market segmentation Aquasana growth strategy (Corporate) and a generic strategy (Business) Growth strategy can either be corporate or business one. One of the most difficult things or challenge for many business managers is managing rapid growth because the business is normally faced with both opportunities and challenges. It is therefore important for the business to identify and create a good growth strategy. In this respect, Porters generic Competitive Strategies can be used to determine if the companys productivity is more or less than the average industry standards. Sustainable competitive advantage is considered as the basis of the average industry standards. Therefore, it might be possible for Aquasana Water Solutions Company to possess the two basic types of competitive advantage in the form of low cost or differentiation. The following model will clarify the concept of competitive strategies. Diversification strategy in the market will help Aquasana to penetrate into the new market where there is no operating business. In this way, they will be able to create an innovative product in the new market and thus, expand their previous product line with similar kinds of products. The strategies in diversification include development of new products or markets, acquirement of a company, collaboration with a company and others. One of the first steps to developing an effective growth strategy is by focusing on the business or company strengths other than concentrating on the weaknesses. Most of the business weaknesses are solved when the strengths outdo the weaknesses. Therefore, Aquasana Water Solutions Company should give more focus on their service delivery and ensuring that every family enjoys a great tasting of healthy water. Provision of quality services to its customers and great innovative solutions, as well as environmental conservation, should be the top priority of the company. This will help the company meet its sales targets as compared to concentrating on company weaknesses. Business strategy of a company is defined as their plan to meet certain objectives. The strategies become successful when the business experiences growth, a competitive position in the market and a powerful financial base. An effective growth strategy will be determined by the ability of the company to establish its value proposition. In this case, Aquasana should identify the factors, which sets it apart from other competitors for them to boost their sales targets (Khan and Quaddus, p. 278, 2015). Moreover, it is largely recognized in protecting and conserving the environment through innovative technology, which is able to reduce the filtering contaminants. It needs to be given more attention as it is the value proposition of the company. Aquasanashould use the strategy of cost leadership and differentiation, which affect the growth of the company. By doing so, the company is able to dedicate more time and resources. A good business strategy will also be achieved if the company is able to verify its revenue stream. The future of any company is determined by the ability of the company to attract new talents from the job market. Investing in new talent is a great growth for the strategy as they bring about new skills into the company, innovations and can help in delivering better services to the company clients as compared to the existing workforce. It is also of great importance for the company to focus on their competitors and learn about their growth strategies in order to maintainrelevance despite the increased market dynamics. Defining the Sales Target for 2016-2017, based on the environmental analysis In order to define the sales target for the year 2016/17 based on the environmental analysis. It is important to understand that these targets can only be met when there is sustainability in the business as it forms the backbone of every business. Sustainability in business can be seen in two different angles where we have economic sustainability as well as environmental sustainability (Wang Miao2015, p. 2376). Economic sustainability of any business can be achieved through natural capital which comes from the environment, human capital resource which is determined by talented labour, productive capital which results from company productive activities as well as social capital from social trusts and interrelations and finally the financial capital which is used to connect all the other capitals resources and help the company grow and sustain an economy. Environmental sustainability, on the other hand, is directly focused on the physical environment. The sales targets for the year 2016/17 for the company through expansion and entry into the Oman new markets are expected to increase by 5% of the existing sales. To achieve this company will be required to focus more on internal strengths and minimize its weaknesses based on the environmental analysis. The company is also expected to identify new opportunities within the Oman market and maximize them to the benefit of the company. All the operations of the company should be aimed at managing and conserving the environment in order to increase its corporate social responsibility initiatives. Young and middle-aged customers-----------------3% increase The aged group of customers-----------------------2% increase New customers expected------------------------------=(3-2)= 1% expected increase With an increase of sale targets of the three class or groups of customers will help the company attain an annual sales target of 5 % at the end of the year. Sales targets for Aquasana The volume of sales of water heater for both household and commercial purpose of Aquasana as per the 2017 report is given below: Oman: $1765.4 Rest of the world: $997.7 Inter segment sales: -(20.5) Total net sales: $2742.6 billion(Johnstonand Marshall, 2016, p. 8) A sale target in Oman for 2016- 17 according to the sale plan has followed a total percentage of international sales: Current sales volume= $2742.6 billion Number of Sales Person=Total Sales/Estimated sales of per person =2742.6 billion/3 billion=914 sales persons Sales Territory Expected sales Muscat $1000 Sohar $200 Ibri $200 Barka $200 Total $1600 Table: Target sales territory Sales force plan to achieve the defined sales targets, Sales Force Size Tertiary Design for Oman with clear justification This simple sales force plan can be used to achieve the sales targets for Oman. Since this would be a new market, the first step would be identifying with strangers or the people of the area,which forms a basis for creating awareness (BansalDesJardine, 2014, p. 78). The next step would be to connect with the people, and in this case, the salespeople will give some leads to the strangers they have already identified themselves with. Then from the leads, it is easy to identify the qualified leads and this given a further analysis for consideration. The salespeople are able to explore the leads for sales opportunities and advise them on the company products and may end up becoming company customers. A plan for sales training and techniques for the effective sales performance of the sales team of Aquasana Different managers used different techniques to increase or improve the sales performances of the company based on performance of the sales team. Below is a plan for the sales training and techniques for effective sales performance. The first training technique would understand the product (Gamble Thompson, 2014). This greatly helps in understanding the needs of the customer and tailoring the product to provide the best solution to their problems using the product. The second sales training and technique would be reward specific performances and encourage the sales teams that they are doing a great job which boosts their morale and confidence in their work to become the best. It is also important for the managers to avoid overtraining of the sales team. This can have a negative effect on their natural talents and confidence and therefore the training should be kept short but consistent with microlearning (Crane Matten, 2016). Offering field training is also a very crucial sales technique as it provides a detailed feedback from their moments of interaction and social encounters. However, telling success stories to the sales team does a magic to their productivity. It instills a sense of unity in the company salespeople and encourages them to work harder and even smarter to achieve not only their goals but also the company goals. Customer Relationship Strategies to Build a Loyal Customer Base (flower model) Based on the flower model, it defines various market domains, which are interdependent but not necessarily have the dame importance in the company. Each market domain plays an important role different from each other and Aquasana needs to adopt the domains, which are relevant to help them build a loyal customer base. The figure below shows a Six Market Flower Model which can be effective in building a loyal customer base. Customer markets: The success of a company is dependent on the relationship the company is able to make with its customers. The sales people therefore play are a very important role in fostering the client or customer relationships with the company as they act as the first face of the company. The customers are usually the greatest assets a company can ever have (Johnstonand Marshall, 2016, p. 8). It is therefore important for the management to develop effective customer relationships strategies for the sales team in order to equip them builds a loyal customer base. This can be achievedby learning about your customers or getting to know them. The customers include all the people who have continued using the water filter of Aquasana. The company need to kow the requirements of the customers (Bolander et al. 2015, p. 11). Secondly, it is also important that the sales team learn to live by the customer complaints. These complaints give the salespeople or team an opportunity to hear from the customers of what they think about the product or the service. Referral markets: It is very easy for the company to increase their customer base by taking opportunity of the existing customers. Most companies have therefore developed referral strategy whereby they use their existing customers to refer new clients to them. The existing customers usually have an experience with the company and therefore it is easy for them to trust someone who has had past experiences with the company compared to a stranger (Aranda et al. 2015, p. 1202). Most customers are able to buy or consume a certain product merely because they can trust you and not just because of the product. Recruitment Markets: most companies do not recognize the importance of these markets in building relationships with customers. An employee with the right attitude towards work is likely to contribute to positive relationships as he or she lives as per the brand of the work. However, an employee with a negative attitude despite having the right skills will not be able to bring good clients or customers to the company. The company, therefore needs to be careful on their recruitment strategies and should ensure that they develop the company brand right from the recruitment (Wynn 2012, p. 354). The main goal is to implementing effective customer relationship management strategies aimed at improving customer relationship and contribute to increased client retention. Internal markets: the company can also focus on the internal market as it plays a very important role in relationship marketing. Improving employee relationships within the organization is very critical in developing brand development and enhancing marketing. The company should therefore focus on training the employees and keep them updated with the current market trends, motivate them using both monetary and non-monetary gifts and always feel concerned of their welfare. A satisfied employee will transform the same energy into bringing good clients and customers to the organizations or company compared to unsatisfied employee. The Influence Market: the market is comprised of various market forces, which may directly or indirectly impact on the business. Such markets include the environment markets, the financial markets, government as well as the competitors markets. Having knowledge of these four markets will help the company develop products, which cost effective, competitive in the market and are environmental friendly. A company brand or product that is cautious of these markets is able to build long lasting relationships not only with the customers but also with the external world and hence give it a competitive advantage. Supplier/Alliance Markets: the supplier markets are engaged in selling or distributing the products to relevant business locations and therefore the markets are market based. On the other hand, the alliance markets are knowledge based and provide useful information about a certain product. Such markets are also very critical in building loyal customer based; suppliers can be a channel for marketing a certain product or brand in a certain region while alliance markets develop customer trusts by providing knowledge on the product. The company therefore needs to venture into these markets and utilize any opportunity available to build customer relationships. Conclusion There is indeed great potential for Aquasana to venture into the Oman market. The success of the venture into the new market will depend on the specific sales strategies employed to meet the sales targets for the company. It is therefore important to analyze and have sufficient knowledge on the business environment in which the business operates. Understanding the strengths, weaknesses, opportunities, and threats available in the market is a very critical tool for Aquasana to adopt or initiate a sales policy or decision. However, the company has to allocate a sale effort as well as determine the sales force size and identifying the sales territories in the region. The sales team of the company in Oman needs, therefore, to be trained on the sales techniques as well as on customer relationships techniques. This will eventually lead to successful venture into a new market and meet the sales targets of the company. List of References Aranda, C., Arellano, J. and Davila, A., 2014. Ratcheting and the role of relative target setting.The Accounting Review, 89(4), pp.1197-1226. Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction. Pearson Education. Bansal, P. and DesJardine, M.R., 2014. Business sustainability: It is about time. Strategic Organization, 12(1), pp.70-78. Bello, B., 2014. Growth strategies for very small organizations: A case study of a very small entrepreneurship. International Journal of Organizational Innovation (Online), 6(4), p.51. 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