SALES SUCCESS Consultancy Group Ltd. SALES PLANNING & OPERATIONS TRAINING PACK Presented by Consultant: Victor Martinez-Perez January 2013 1. 1 How Personal Selling supports the Promotional Mix. It is a common mistake to believe that promotion by business is all about advertising. It isn’t. There are a variety of approaches that a business can take to get their message across to customers, although advertising is certainly an important one.  Promotion is all about communication. Why, because promotion is the way in a business makes its products known to the customers, both current and potential.
1] The main aim of promotion is to ensure that customers are aware of the existence and positioning of products. Promotion is also used to persuade customers that the product is better than competing products and to remind customers about why they may want to buy. In fact, promotion has many potential uses in business. It can be used to: * Increase sales * Attract new customers * Encourage customer loyalty * Encourage trial * Create awareness * Inform * Remind potential customers * Reassure new customers * Change attitude * Create an image * Position a product Encourage brand switching * To support a distribution channel It is important to understand that a business will use more than one method of promotion.
The variety of promotional methods used is referred to as the promotional mix. Which promotional methods are used depends on several factors such: * Stage in the life cycle * Nature of the Product * Competition * Marketing Budget * Marketing Strategy * Target Market The main methods of promotion are: * Advertising * Public relations & sponsorship * Personal selling * Direct marketing * Sales promotion
Figure 1: Personal Sales in the Marketing and Promotion Mix  Personal selling is a method of promotion activity and it is where the business makes use of its work force (YOU), to directly contact the customer. This person-to-person or face-to-face with the customer has the goal of direct promotion of the product and closing of the sale.   You are the company’s ambassador and You will be promoting the product through your attitude, appearance and specialist product knowledge. Your aim is to inform and encourage the customer to buy, or at least trial the product. 2] A good example of personal selling is found in department stores on the perfume and cosmetic counters. A customer can get advice on how to apply the product and can try different products. Products with relatively high prices, or with complex features, are often sold using personal selling. Great examples include cars, office equipment (e. g. photocopiers) and many products that are sold by businesses to other industrial customers.  In general, if a product has a high unit value and requires a demonstration, it is well suited for personal sales.
For example, highly technical products are also primarily sold through personal sales methods. Computers and copiers are good examples of technical products that are best sold through personal sales. Products that involve a trade-in are also best sold through personal selling to help facilitate the trade-in process. Automobile sales often involve a trade-in and almost always involve a personal sales transaction.  Personal selling as a career is unique and offers many benefits. It is, however, not for everyone. In general it involves long, irregular work hours and extensive travel.
A personal salesperson should also be able to handle rejection face to face, which is a large component of the job. On the other hand, personal sales offers great rewards for those who are successful. Because most compensation involves commissions based on completed sales, the potential for income is great. With personal sales, there is no ceiling on what a person can earn, as there is with other salaried jobs. Also, many people enjoy the freedom of flexible hours and the fact that a personal salesperson has little contact with a supervisor.
A career in personal sales offers a person the chance to develop interpersonal, communication, organizational, and time-management skills.  1. 2 Comparison of buyer behaviour and decision making process when dealing business-to-business (B2B) and business –to-consumer (B2C) The sales cycles and length of time to achieve a sale is very different between B2B and B2C sales. Selling to a business involves passing through internal “red tape” in order to get the approval for a company to buy your product.
Once the approval is received, the order is placed and the product is delivered. The bill is then usually paid on a net 30-day schedule so the profit to be achieved is at least a month out on most sales.  With B2C sales, the sale is almost instantaneous. The customer decides to buy and pays right then. The product is paid for and you move on to the next customer. B2B sales are almost entirely based on a rational decision of business value to your customer. The product will simplify a task, provide less waste, increase productivity or cut down labor costs.
These are only a few of the reasons the product is attractive to your business customer. In B2C sales, the sale is emotional due to the status of owning it, value that it provides the customer, or simply the price.  Some characteristics of organizational buying / selling behavior in detail:  * For consumer brands the buyer is an individual. In B2B there are usually committees of people in an organization and each of the members may have different attitudes towards any brand. In addition, each party involved may have different reasons for buying or not buying a particular brand. Since there are more people involved in the decision making process and technical details may have to be discussed in length, the decision-making process for B2B products is usually much longer than in B2C. * Companies seek long term relationships as any experiment with a different brand will have impacts on the entire business. Brand loyalty is therefore much higher than in consumer goods markets. * While consumer goods usually cost little in comparison to B2B goods, the selling process involves high costs.
Not only is it required to meet the buyer numerous times, but the buyer may ask for prototypes, samples and mock ups. Such detailed assessment serves the purpose of eliminating the risk of buying the wrong product or service. Buying processes are likely to differ between situations where it is an organisation rather than an individual making a purchase:  * Two sets of needs are being met when an organisation buys a product: the formal needs of the organisation and the personal needs of the individuals who make up the organisation. * More people are typically involved in organisational purchases. • Organisational purchases are more likely to be made according to formalised routines. * • The elements of the product offer that are considered critical in the evaluation process are likely to differ. * • The greater number of people involved in organisational buying also often results in the whole process taking longer.  1. 3 Roles of sales teams within the marketing strategy Marketing strategy can be defined as the organization’s strategy that combines all of its marketing goals into one comprehensive plan. A good marketing strategy should be drawn from market research and focus on the ight product mix in order to achieve the maximum profit potential and sustain the business. The marketing strategy is the foundation of a marketing plan  Sales Teams play a key role in the success and/or failure of an organization. Generating income and revenue are the primary roles of the sales force and this is usually achieved by meeting the sales targets, set up previously on the marketing strategy. In addition to generating income, the sales force builds trust with customers. Sales representatives engage customers at all stages of the relationship.
New customers need interaction and opportunities to learn about the brand. Current customers gain trust through consistent follow-up and communication with the sales representative. Sales representatives also work to re-engage previous customers through promotions, discounts, and communications. Building trust throughout the customer sales cycle increases customer satisfaction.  Businesses can decide between two types of sales teams or use a combination of both. Outside sales representatives, also called field reps, work independently to generate sales.
This type of sales force structure works best with responsible, self-starters who need little supervision. They travel to customer locations to pitch products that require demonstration. Inside sales representatives, also called telemarketers, spend most of their time on the telephone talking with prospective customers or making appointments for customers to come to them.  Sales team members are the eyes and ears of a company. They are the forefront of the company and they understand customers needs better than anyone else and they should report back to the company with any findings.
The sales team must maintain and improve relationships with clients, maintaining all necessary data and records for future reference. A caution note: Salespeople can make or break a business, depending on their level of professionalism, commitment, and integrity. When first hiring a sales force, businesses must check references and use effective interview techniques to find people who best fit the company culture and its goals. If it becomes apparent that a team member does not match the organization, managers or business owners should consider finding a more appropriate sales representative. 9] 1. 4 How sales strategies are revised as the company’s objectives change. Companies that remain static and do not act on market dynamics will inevitably stagnate and fail to achieve objectives they set. Often, after a short period of time, the sales strategies derived from the initial objective are no longer relevant to the conditions in a fast moving consumer market place. Sales strategies need to keep pace with changes in the market, consumer behaviour and with competitor activity in order for the company to remain one step ahead. Figure 3: The planning Process 
It is essential that the company listens to the consumer and revises its strategies in line with market and customer feedback. Store Managers are the first line of contact with the consumer, and therefore, the information they gather from being first line is invaluable. It ensures the communication flow from the market, the user, the consumer back to the sales and marketing department which is then able to take action on that feedback and adjust its strategies accordingly. 1. 5 The importance of recruitment and selection procedures for effective sales performance.
Effective recruitment and selection of salespeople is one of the most crucial tasks of sales management. It entails finding people who match the type of sales position required by a firm. Recruitment and selection practices would differ greatly between order-taking and order-getting sales positions, given the differences in the demands of these two jobs. Therefore, recruitment and selection begin with a carefully crafted job analysis.  While motivation is a key management function the sales manager must have the ight material, in terms of suitably qualified salespersons to motivate. That means selecting and recruiting to rigid criteria that are demonstrably relevant to successful achievement and high performance as salespersons and then training those persons to meet the standards and perform the selling job as suits the company’s products and markets.  The aim is to develop a formalized framework that sales managers responsible for all or part of selection and recruitment can adapt or adopt to reduce the risk of inappropriate selection of unsuitable salespersons.
Typically each sales line manager is responsible for his or her own final selection of new members to his or her team.  Sales recruitment is a costly process, and poor selection results in: * Under-performance in sales activities * A distraction of management time as more supervision is needed * Additional training needs * Higher staff turnover with resultant repeat recruitment costs. There are several issues or points which have to be considered when recruiting sales people, to avoid a costly and painful process.
These are listed and explained below: 1. Selection matters 2. Need for job description and person specifications 3. Potential sources of recruitment 4. Interview preparation and techniques 5. Selection and Appointment process. Job descriptions and person specifications  The starting point in the recruitment process is to develop a job description and person (job holder) specification. A well-prepared job description serves several useful functions for the sales manager, including: * as a basis for preparing personnel specifications clarifying job functions to sales manager sand job holders * providing a performance measurement base * providing a base for appraisals and other formal and informal counselling * aiding inter-job content comparisons * Facilitating job evaluations. Poorly prepared job descriptions can produce demarcation disputes, cause interpersonal rivalries and jealousies, or result in unwarranted assumptions of authority by one person or another. Content and coverage of a job description 
Before you can recruit someone for a job you need to be clear on what the job is. It is important to be sure the job is quite distinct from jobs being done by other people in the sales organization, otherwise there is a risk of overlapping responsibilities, producing conflict or a failure by job holders to accept personal responsibility for actions or activities; for example, the salesperson’s role could overlap with some responsibilities of key account managers, various managers in marketing or support functions, merchandisers or sales promoters.
Normally a job description should contain at least the information outlined in Appendix-1, although the style and format will vary between companies. The typical job description summarizes the nature of a job, its functions, responsibilities, duties and accountabilities, and key competencies of persons appointed to the position. The reader may already have job descriptions prepared in his or her company format, but if not should develop descriptions for all jobs within the sales organization. Person specifications 
Once you have a job description the next stage is to consider the kind of person you need to perform all the job functions. The qualities, skills and experience needed to fulfil the job can all be summarized in a person specification (or job holder profile), which is really just a pen sketch of the ideal job applicant. It can be used as a reference point when you are screening job application forms or conducting initial interviews. When preparing person specifications some of the questions the sales manager should consider include the following. 11] * What are the present strengths and weaknesses of the team? * What kind of personality will fit with the team? * What skills/qualities in a new recruit will provide a better balance within the team? * Do you need more graduate caliber salespersons? * Do you need to increase the mix of salespersons with particular skills such annum or familiarity with computers? * Do you need a salesperson with established trade relations? * Will special qualities and skills be needed to service any particular types of customer? Is there any special working hours for contacting customers that require particular flexibility or particular qualities/skills? Some of the categories in which you might set objective standards include those illustrated in Appendix-2, which show alternative approaches to designing personnel specifications. The basic standards and requirements you include in the person specification should be factors that can be measured objectively, or where your personal assessment (if they are subjective factors) is critical in considering a job applicant. 11] You really should only set a standard if the ability of an applicant to perform a particular job really may hinge on meeting that standard and an assessment can be made from application forms or at interviews. The minimum standards set in a personnel specification should be relevant to successful job performance, and optional standard scan also be set in respect of qualities or skills that the ideal candidate additionally might possess. 11] Persons who do not qualifying respect of minimum standards you set should not normally be interviewed or appointed. Local laws relating to recruitment and employment vary round the world, and it is important that account is taken of these in developing job descriptions, person or jobholder profiles, and the methods and manner of recruitment.  Potential sources of recruitment Every organisation has the option of choosing the candidates for its recruitment processes from two kinds of sources: internal and external sources.
The sources within the organisation itself (like transfer of employees from one department to other, promotions) to fill a position are known as the internal sources of recruitment. Recruitment candidates from all the other sources (like outsourcing agencies etc. ) are known as the external sources of recruitment. A list of some of the different options can be found in Figure 4. Figure 4: Main Internal and External sources of recruitments  Interview preparation and techniques The selection process will normally take more than one interview, possibly supported by other forms of assessment tests.
Candidates you consider most suitable should be invited for interview (by letter or telephone) with you or a personnel manager as soon as possible, and if you plan to use other assessment techniques the candidates should be notified of that, and advised of the duration of the selection process.  Selection and Appointment process Once the first interviews have taken place, and objective decisions made about which candidates warrant further consideration, second meeting with each of the shortlist should take place to further probe their suit abilities, skills and experiences.
The shortlist interview can also provide additional information on the company and the specific job vacancy. This shortlist interview should be conducted within as brief a time interval as possible after the first interview.  Prior to making a formal job offer, but after completing the selection process to the point where you have a favorite candidate, you should take references on the prospective appointee (with his or her consent). In some companies this may be undertaken by human resource manager, but in others it will fall to the line manager. 11] When the sales manager has made his or her decision on whom to offer a sales position to, and if all the references taken are judged satisfactory, then the last stages in the recruitment process are: * sending a Letter of Appointment to the selected person * sending ‘No’ letters to the unsuccessful candidates * Organizing the welcome and induction process and training for the new recruit. To conclude the process, a job offer letter should detail all the terms and conditions relating to employment with the company in the local market, and ill normally include, either in the actual letter or in accompanying documents such as an employee handbook including details such basic pay, bonus and incentive schemes, hours of work, etc. To conclude, it can be seen that the recruitment and selection of a sales person is an extremely long, expensive and time consuming process. Furthermore, the process does not warranty that the selected candidate is going to be the perfect one or even if he or she may want to stay or leave the company after a short period of time.
In this case, the whole process will have to be initiated again with all the consequences that implies. Below is a typical process diagram for a typical recruitment and selection process. Figure 4: The recruitment and selection progress flow diagram  However, following the recruitment and selection process and using the different techniques available in identifying a suitable candidate, plus training provided will ensure that the sales performance expected is likely to be achieved, in the shortest period of time possible. 1. Evaluate the role of motivation, remuneration and training in sales management. Selling is a tough job, tough on the ego, tough on the energy level, which explains why sales reps are often some of a company’s highest-paid employees. But even a fat salary is usually not enough to combat steep competition, difficult customers and no very happy prospects. If compensation were a sufficient motivator, the sales team would already be performing.  Instead, it is critical to identify what excites sales people, maybe it is cash, certain gifts, prestige, peer recognition or job satisfaction.
Not everyone is the same and not all people are motivated by the same things but it seems that more often than not, there is something in common within the sales managers and this is they all want to be in the top, they want to win. However, it is necessary to ensure that all departments is involved and interested, creating a program that allows everyone to win at some level.  Some commons ways to motivate sales managers are listed below: FINANCIAL INCENTIVES| NON-FINANCIAL INCENTIVES| Bonuses- Vouchers- Commission- Shares| – Prizes- Awards (e. g. : Employee of the Month)- Social Events- Pride-League Tables- Flextime / Days Off| INDUCTION & ONGOING TRAINING| TRAINING METHODS| -Suitable? – Tailored? – Set Expectations- Identify Own Needs| – Coaching- Peer- External- Mentoring| Not everyone is the same and not everyone has the same needs when being motivated. It is paramount to understand your staff and to find out what will make them kick.
A motivated sales manager, will work better, happier and in return, he or she will bring results and sales, which is ultimately what the company is interested in. Hence, everyone is a winner. 1. 7 Ways in which sales managers could organise sales activity and control sales output The importance of sales management is critical for any commercial organisation. Expanding business is not possible without increasing sales volumes and effective sales management goal is to organise sales team work in such a manner that ensures a growing flow of regular customers and increasing amount of sales. 15] When business is growing, customers need more products, service and customisation; this individual activity oriented approach can become a barrier for sales to grow because unfocused and uncoordinated activity decreases effectiveness. As a sales manager, your sales department must be reorganised and sales people should specialise and co-operate with each other as well as other departments of the company. Poor team sales management leads to losing orders and customers so it is better to introduce a sales planning system as soon as possible.
Appropriate software will help sales team leader to set sales goals which will motivate sales personnel.  After setting sales goals, salespersons’ activities should be passed by regions, clients, channels managers, product, etc. Sales team leader or sales department head should choose volume and operational metrics to evaluate sales manager’s effectiveness and hence help to motivated them to achieve results.  Below are some of the ways in which the sales manager could organise sales activity: * Order takers, order creators, or order getters:
This is a clear differentiation by job role. Order takers do not follow leads or persuade existing customer while an order getter will follow the lead. * Geographic: Depending the number of sales people, revenue by area, etc the sales manager may well organize his sales team to operate by geographic area. This could be split by population, revenue, square miles or perhaps counties. * Product or Brand: Sales manager may well divide sales team by product or brand. Some sales reps may have more specialized knowledge of a specific product or brand.
This could be good for customer service as sometimes the customer may need someone that really knows a particular product or service. A lack of knowledge in a product could damage the image of the company. In relation with controlling sales output a series of techniques and tools can be used and are listed below: * Budgets: A sales budget is a valuable tool that gives a direction to a company with regard to its targeted sales and it helps to improve the profitability of a company. It consists of three parts; break even, target and projected sales.
The budget also includes sales by product, location, customer density and seasonal sales patterns. It provides a plan for both cash and credit sales. The basis of a sales budget is the sale price per unit of goods to be sold multiplied by the quantity of goods to be sold. A sales budget is planned around the competition, the material available, cost of distribution, government controls and the political climate. The budget guides the company with regard to how much money should be allocated to selling distribution and sometimes for advertising and marketing.
A sales budget that sets realistic targets will help the company make a profit.  Figure 5: Plotted graph of Actual vs. Budget Sales  * Measuring Performance: Measuring the performance of sales staff can be a challenge for any business. Each salesperson is different and works differently but there are tools we can use. Key performance indicators (KPIs) are ways to periodically assess the performances of organizations, business units, and their division, departments and employees. Accordingly, KPIs are most commonly defined in a way that is understandable, meaningful, and measurable. 18] Hence, it is an excellent tool in helping monitoring the sales output. Regular monitoring e. g. sales vs. targets, average sales, conversion rates, etc. In addition it is paramount to ensure that all members of the sale force have a clear understanding and know what they are being measured against. * Monitoring Performance: * Appraisal – review performance over 3/6/12 months * Identifying sales person’s strengths and weaknesses. Agreeing and reviewing actions to develop sales skills, performance, etc. Encouraging sales staff to reflect upon own performance * Customer care – feedback from clients * Sales are not the only measure of success. Retention is important for repeat of business, company image, recommendations (referrals). * Control of founds and expenses. We must ensure it is worthwhile spending the money available in order to get return from closing deals and getting revenue. 1. 8 How databases can be use to manage sales and a sales team effectively A database is a collection of related files that are usually integrated, linked or cross-referenced to one another.
The advantage of a database is that data and records contained in different files can be easily organized and retrieved using specialized database management software called a database management system (DBMS) or database manager.  A database management system is a set of software programs that allows users to create, edit and update data in database files, and store and retrieve data from those database files. Data in a database can be added, deleted, changed, sorted or searched all using a DBMS.  Hence, DBMS has become a fundamental tool to help manage sales and sales teams effectively.
Below are highlighted some of the points which the DBMS will help the sales team and the company. * It can help to understand who is buying, how often, how much, value of purchases made, etc. In this case this is really helpful to target certain customers, monitor how they are doing, give them a call if they are likely to run of stock, etc. * It can help in tracking sales, ensuring clients gets what they want when they want it and the client can be informed quickly if there are any issues with the order. * It helps to gather all information related to a customer.
This is particularly helpful when the sales manager of an account or client, is away on other businesses, holidays or even left the company. Thanks to the updated information available on the database, any other sales manager can understand what is happening and take appropriate action accordingly, giving a true professional service to the customer and maximizing sales as well as minimizing time waste and errors. * Previous and current orders data could include location, contact name and number, value of order, delivery agreed, payment terms, special requirements, etc. Increase possibility to repeat business with previous clients, such sending promotional offers to clients who previously bought from the company, etc. * Electoral roll, DVLA, etc – buying data sources for prospecting and “cold calling”. * Management information systems often linked to databases can generate sales results, sales force performance, performance reviews, sales forecasting, etc. * Sales Analysis: See at a glance who’s buying what, where you’re making the most profit, which products or customers are declining or growing the most, which customers are no longer buying, and lots of other insights. 20] * Sales Commission: Some management databases have a commission module which helps to smooth out the time consuming in data entry errors of elaborate commission structures. Best of all, salespeople can see their commissions pile up.  This could also be used as a motivational tool for the team. Figure 6: Commission graph for a DBMS  * Databases control mechanisms by controlling access, encryption of data, avoid accidental deletion/amendments, data protection, security, etc. * Security of data is essential now days, hence back up.
Many companies no longer allow use of memory sticks to hold client and company data. Then, it can be said that databases are an essential tool on today’s companies, playing a vital role and being especially helpful to the sales teams. However, it is vital that the information entered in the database is kept up to date. An updated database, will reduce errors, will help to monitor and drive sales in a very efficient and professional manner, allowing forecasting, monitoring and driving the sale force and therefore, maximize the company’s opportunities and profits. REFERENCES 1] http://tutor2u. net/business/marketing/promotion_mix. asp  http://tutor2u. net/business/marketing/promotion_personalselling. asp  http://www. referenceforbusiness. com/encyclopedia/Per-Pro/Personal-Selling. html  http://www. biz-development. com/Marketing/5. 7. Marketing-Mix-Promotion. htm  http://en. wikipedia. org/wiki/Business-to-business#Buying_behaviour_in_a_B2B_environment  http://reference. yourdictionary. com/word-definitions/what/difference-between-b2-b-and-b2-c. html  http://fds. oup. com/www. oup. co. uk/pdf/bt/palmer/im07buyer. pdf  http://www. usinessdictionary. com/definition/marketing-strategy. html#ixzz2ITVKdVhd  http://smallbusiness. chron. com/role-sales-force-763. html  http://wps. pearsoncustom. com/wps/media/objects/6904/7070240/MKT307_Ch02. pdf  http://e-university. wisdomjobs. com/sales-management/chapter-1660-309/recruitment-and-selection-in-the-sales-force. html  http://feaa. ucv. ro/AUCSSE/0036v3-024. pdf  http://recruitment. naukrihub. com/sources-of-recruitment. html  http://www. success. com/articles/1445–how-to-motivate-your-sales-staff  http://www. docstoc. om/docs/1107245/Sales-Management  http://www. ehow. co. uk/about_4699902_what-sales-budget. html  http://www. dataself. com/dsbi_dep_sales. htm#thumb  http://en. wikipedia. org/wiki/Key_performance_indicators#Marketing_KPIs  http://www. personal. psu. edu/glh10/ist110/topic/topic07/topic07_05. html  http://www. dataself. com/dsbi_dep_sales. htm#thumb SALES SUCCESS Consultancy Group Ltd. Coco-Loco PRODUCT PLAN Presented by Consultant: Victor Martinez-Perez January 2013 Sales Plan – Coco Loco Coco Loco will be targeted at children and health conscious teenagers.
In order to gain maximum margin from the sale of each bottle of Coco Loco and obtain wider coverage of the market segment, it is planned to sell Coco Loco through two different channels. Supermarkets – clearly it is in supermarkets where the sales volume of the product will be achieved. This will also mean that prices will need to be more competitive to compete with other health drinks in the sector and the wider choice on offer in the supermarket. The product should be packaged in cartons with an attached straw, this way it can be put into a child’s lunchbox for school and easily consumed by younger children.
It is in the supermarkets that the parents of children conscious of the need for them to get calcium in their diets and avoid sugar loaded, fattening empty calorie drinks (such as Coca-Cola). Milk alone is often not a favourite of children, so by marketing the product as a fun healthy drink the parents are able to get the best of both worlds. Gymnasiums and Health Clubs – Prices through this channel can be higher as the competitor products are fewer. The product can be packaged in cartons in the same way with an attached straw, this allows it to be thrown into the gym kit or sports bag.
It can also be disposed of easily once consumed. Teenagers are increasingly aware of the need of keeping fit and stay healthy, so they do play more sports and some gyms do already have a “teenager’s afternoon”. Team sports events in the early evenings and circuit training for all abilities. Most gyms already promote cereal bars and low calorie food as well as Isotonic “fitness drinks” such as Lucozade or Gatorade. There has been a lot of publicity about the high sugar content of these drinks, so Coco Loco will be marketed as a healthy, less fattening option. Trade fairs and exhibitions
Coco Loco should be marketed at trade fairs to allow buyers to understand and “meet” the product. Free taster sessions should be on offer with endorsements from sports or healthy campaigners. Trade fairs become the product’s shop window to buyers who otherwise would not get the chance to understand the product’s marketing message and in turn how to promote it in their own distribution channel. Marketing should prepare plentiful of literature and ‘freebies’, such T-shirts, bags, etc, so people can take them home. This is a great opportunity to advertise the product. Selling abroad
When promoting Coco Loco abroad there are several factors to consider: Does the government of the country have concerns for the health of the nation? If so the product may be easily introduced. As France is in the European Union the product should be easily marketed. The USA may have a different political agenda in terms of support for the sale of these types of drinks, although clearly there are concerns about health and obesity. How is food and drink produce taxed in these countries? Adjustments to price may be needed to reflect the levels of competitor pricing of similar products.
When marketing Coco Loco abroad we need to ensure that the trend in country is towards healthy food and drink. We should aim to promote low fat, vitamin drinks as something completely new and revolutionary in the market place. Culturally, does the market understand “Coco Loco” as a name and a brand? The French market would obviously require packaging and marketing to be in French rather than English. There may also be specific labelling requirements in France and the USA that require Coco Loco to have different information on the packaging to the UK requirements for example.
Can the product be packed in cartons or is this unacceptable in environmental terms in the market? All these packaging requirements would need to be checked prior to any product launch. The channels used in the sale of the product would need to be adjusted to suit the market. In the USA it may be that the sales of the product can be exploited better through health and fitness clubs than major supermarkets. Coco Loco may also wish to employ a French speaking sales manager to sell to the distribution channel.
To conclude, the company has a great opportunity to market the product through different segments and population. However, marketing in two different continents will bring legal and cultural implications that will have to be addressed in order to be successful, not to mention that both countries have also different languages. This will require a double effort in terms of marketing both culturally and packaging. Hence, it is expected that the product ‘Coco-Loco’ will succeed and generate enough revenue to be introduced and built a reputation as a great alternative to more established
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