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Unit 20 Sales Planning and Operation Assignment Solution - L’Oreal
Diploma in Business
Unit Number and Title
Unit 20 Sales Planning and Operation - L’Oreal
Sales is been considered to be the most important activity for an organisation dealing in the tangible products and services. It is very much important to develop effective sales planning for the organisations which contribute in the achievement of their set goals. The present unit 20 sales planning and operation assignment solution - L’Oreal is been carried out with the intention to understand the concepts of selling and collect in-depth knowledge about the same. It would be evaluating the importance of personal selling related to promotion mix of an organisation. The report would be entirely focused to the sales concepts of L’Oreal, a leading cosmetics brand being headquartered in France. The report would help in identifying the role of sales teams in a marketing strategy of the company. It would even evaluate the role of remuneration, motivation and training in the sales management of L’Oreal. Furthermore, the report would be developing a sales plan for the new products and services of L’Oreal. The opportunities for making the sales of the products at the international levels would also be recognized and evaluated in the report. It would also helps in investigation the opportunities of making use of the trade fairs and exhibitions for the sales effectively.
Personal selling is basically an oral communication with the prospective customers of the products and services carried with the purpose to make sales development. The process mainly focuses on the developing a relationship with the prospective buyers and eventually makes best effort to end up the attempt to close the sales. It has been found that the personal selling helps in making the promotional activities more effective and enhances the customer relationship with the interactions. Personal selling plays an important role in the promotional mix as it contributes in developing a personal rapport among the prospective customers create a link with the customer to retain them for a longer period of time. It even collects a level of customer attention and their interests over the products and services being presented to them. With respect to the case of L’Oreal, personal selling would be beneficial in identifying the needs, wants and expectations of the customers which would help in approaching the prospective target market for the introduction of new products and services (Ingram.et.al, 2012). The information being collected by the sales executives would help L’Oreal in identifying the actual potential target market, market trends, customer’s demands and expectations which would thus help in developing the products and service accordingly. It has been found that it is very much important to analyse the market trends and demands of the customers so that to enhance the sales and meet the set goals of the business.
In context to the current scenario, the decision making process of L’Oreal acquires specific steps which help the marketing management to make effective decisions and establish their brand within the market. It has been observed that the decision making process of sales management includes: identification of the issues in the concerned area, seeks the market information, brainstorms the solution, selects the alternative solutions, execute the plan and then evaluates the results out of the decision. These stages help in meeting the sales effectiveness of the products and services to be launched in the market. Along with this, it is also important for the management of L’Oreal to evaluate the buying behaviour of consumers in both the business to business and business to consumer market segments. The consumer marketing mainly includes the decisions made by the individuals making the final decisions but could be influenced by their surroundings like family members, peers, etc. On the other hand, the business to business marketing includes the sales to the firms specifically. It has been identified that the buying behaviour of both the marketing aspects differs from each other and includes various diversified concepts (Brashear.et.al, 2015). With respect to the buying behaviour in both the marketing, it has been found that the B2B marketing focuses on the planned and rational buying and are mainly based on the needs whereas, the B2C segment includes emotional behaviours and are based on the wants and desires extensively. With the help of sales executives, the management of L’Oreal would be to influence the buying behaviours of both the segments and would make the spent over the new products and services. For example, the sales people would develop a relationship with the firms or the individual and approach them for the products and would influence them effectively.
It has been also identified that the sales force in L’Oreal plays an important role within the organisation as the sales people helps in making the reach to the customer more easier, communicates with the prospective customers and make them aware about the products and close the sales effectively. It has been also identified that sales people identifies the needs of the customers and make the company meet the trends and demands of the same. They interacts with the new customers and identifies the opportunities to explore the products and service of the brand. Along with the new customers, the sales people helps in gaining the trust by consistent follow ups and influence them for the purchases. The sales representatives also work to re-engage the regular or previous customers with the help of various discounts, promotional activities and enhanced communications (Tarkiainen.et.al, 2015). The sales teams are mainly responsible to develop a list of prospective customers, assess the needs and desires of the target market, forecast market trends and demands, develop marketing reports, etc. The management of L’Oreal could make use of various strategies to enhance its personal selling activities along with the sales performances. L’Oreal must define the target market initially, determine the outreach, identify the questions to be asked from the prospectus, deliver the planning and then monitor the same effectively. By following these sales strategies, the organization would be able to achieve the desired level of outcomes.
3.1 Impact of corporate objectives on sales strategies or vice versa
Corporate objectives are the most important aspect of an organization as it provides with a way towards the achievement of the growth and success within the market. The objectives define the desired levels of profitability over the investments carried out in the business enterprise. The sales strategies on the other hand are the procedures being used to initiate the process of establishing the new product line within the market. It has been identified that the corporate objectives lays an important impact over the sales strategies as they are been developed entirely based on these objectives only. In context of the present case, it has been found that the strategies are been developed keeping the achievement of the objectives developed in the sales departments. For example, the sales objectives of L’Oreal could be to increase the sales ratio of the new product line and approach the maximum area of new customer segments (Ashraf.et.al, 2015).
Thus, the sales strategy to increase the sales would be developed accordingly. The objectives could highly impact the sales strategies as it would require to be changed where necessary to meet the objectives and reach the levels of success. On the other hand, the strategies could also impact the corporate objectives as if the strategies are not planned and executed properly than it could lead to the loses to the company. Additionally, the sales strategies are been developed in line with the corporate objectives to target and penetrate the profitable sectors and the markets, executing specific plan to enhance and strengthen the lead generation for the sales of the new product line of L’Oreal.
3.2 Significance of applying rigorous recruitment and selection procedures to the recruitment campaign of L’Oreal
Recruitment is been defined as the process of inviting, screening and selecting the qualified people for the vacant jobs in the organization. L’Oreal requires implementing a rigorous recruitment and selection process so that to reduce the numbers of applicants who are not eligible for the posts, reduce the employee turnover, assess the behaviors of potential employees, time efficiency, etc. These aspects would help the management of L’Oreal in meeting the actual number of vacancies for the sales team in a cost and time efficient manner. The recruitment and selection process of the sales team would even contribute in acquiring the most suitable and capable candidate for promoting and selling the products and services of L’Oreal and contribute in the enhancement of the sales parameters of the new product line and establish its reputation within the industry (Oana and Valentin,2013). For example, by inviting the applications and selecting the one who meets the requirements to the most would help in executing the planning made by the sales authorities and make them achieve the desired levels of outcomes in terms of sales and customer relationships both effectively. L’Oreal is a renowned brand and acquires a good rapport in the market thus hiring a capable and suitable sales person is important to maintain the brand image and enhance the same to the higher levels. It has been commonly found that the sales persons are the key contacts between the organization and the customers and thus represents the brand within the prospectus effectively.
3.3 Evaluation of the role of effective motivation, remuneration and training on sales management
Motivation is been mainly defined as the activity of providing an individual a reason of motive to perform any of the task or job. It is also considered as an influence being made to push an individual to do something. With respect to the case of L’Oreal, it has been found that motivation would play an important role in meeting the objectives of the organization. Various motivational tools such as team building providing monetary incentives target setting, Commission, salary, etc. would help the organization in encouraging the sales person to put their best efforts and make better profits out of it (Gary, 2014). It has been found that making use of the effective motivation techniques would contribute in the enhancement of the sales performances.
Along with this, providing the sales executives with effective training would prepare them to work as per the organizational desires. Providing the sales teams with the training on the product details specifically, making them train to convince the customers, generating leads, ending up the sales with effective results, etc. These initiatives would make the sales team capable to making remarkable sales of the new products line of L’Oreal. In addition to this, remuneration is also an important aspect in sales management as it is the core element of motivating the sales force. Remuneration is basically a wage or salary, normally money which is being paid for the services delivered by an employee. Thus, these aspects are been considered to be the most important to keep the sales team active and make them work towards the achievement of organizational goals.
3.4 Organization of the sales activity and measures to control the sales output
Sales activities include various planning to meet the sales objectives and require implementing effective strategies in the same. In context to L’Oreal, it has been identified that the company would make effective promotional campaign which such as discounts, offers, events, etc. which would help the sales management of the company to spread the awareness within the public. It has been even found that initiating with a promotional activity would attract the customers towards the brand and make them incline towards the new range of products and services introduced by L’Oreal. This would highly contribute in enhancing the sales parameters and lead to the achievements of the set goals effectively (Šírová, 2015). In addition to this, the organization would make use of various sales control measures such as sales budgeting, performance standards, meeting sales targets, etc. Setting up the sales budgets for the future terms would help in making effective strategies and putting the best efforts in the same. This would directly lead to the achievement of the set sales targets and make the management enhance the performances of the sales teams. In addition to this, setting benchmarks would also make the sales team to evaluate their performances and strive hard to meet the levels and acquire the levels of desired success out of it.
3.5 Use of databases in effective sales management for L’Oreal
Databases are basically defined as the information collected about the customers and their buying behaviors such as preferences, tendencies of buying, modes of paying bills, etc. Developing the databases in sales management plays a significant role as it would helps in identifying the key customers and their preferences along with the organisations and behaviour to the sales teams. In case of L’Oreal, the management would be able to approach the prospective customers according to their needs and preferences with the help of past database information at the time of new products introduction. This reduces the cost of finding new target market and enhances the efficiencies of the sales person as well. The person would be able to approach the actual potential customers and would not waste their time and resources in approaching the unsuitable market for the products (Stark, 2015). The databases include the interests and preferences of the customers towards the products which help in carrying out the direct sales to the management. However, it is very much important to maintain the databases with special concerns and security as it includes the personal and sensitive information of the customer which could be even misused by the unethical people. There are various issues which could be faced while developing the databases such as data protection, security breaches, etc. which could lead to a serious issues as well. The sales management of L’Oreal would be benefited by the databases in managing the customer information and approaching them for the new products effectively. This would contribute in the enhancement of the sales numbers along with the customers segments within the industry.
4.1 Sales plan for L’Oreal
A sales plan is basically a strategy which sets out the sales targets and strategies for the organization, and identifies the steps to be taken to meet the set targets. The sales plan of L’Oreal mainly includes the activities to establish its products at the global levels. The cosmetic lines would be mainly planed to expand into London and would evaluate the market conditions of the same. It is very important for the organization to analyze the market suitability for the specific area and deliver the line effectively. Establishing effective promotional campaigns would help in initiating with the sales activities of the new cosmetics lines across the nations and meet the market trends and demands effectively (Johnston and Marshall, 2016). It has been seen that meeting the market trends and customer demands and expectation would contribute in the achievement of the set goals effectively and would lead the company towards higher levels. The sales plan includes the achievement of the set sales targets and put the best efforts to enhance the performance levels as well. It has been identified that L’Oreal would be able to lead towards the enhancement of the sales parameters of the new product line and establish its reputation within the new industry at global levels.
4.2 How L’Oreal can increase sales by selling internationally
Enhancing sales requires having an effective sales strategy which could be implemented by the organisations to increase the sales at international levels. In context to L’Oreal, it has been found that the company could make investments in different countries in order to reduce the risk, carry out various acquisitions or mergers to cover higher number of areas and carry out efficient business activities across the borders. It has been even found that by penetrating the new geographic market such as Asia or Africa could reinforce the market segments to the wider senses. Additionally, by having an enlarged distribution chain over different countries would also help in increasing sales by selling internationally (Whittle and Myrick, 2016).
4.3 How L’Oreal can increase sales through exhibitions or trade fairs.
The trade fairs are usually targeted to the people or industry interested in that specific industry. With respect to the case of L’Oreal, exhibiting the products at the trade fairs could prove to be beneficial in advertising them into the target market and develop brand awareness among the people to the great extent. It has been identified that the displaying the products in the exhibitions would create a brand image and awareness within the new as well as the existing customers and grab the higher sales revenues over the same (Hill.et.al, 2014). Participating in the trade event and fairs at the international levels would lead L’Oreal towards the higher extends.
With the above report it has been identified that personal selling plays an important role in the promotional mix as it contributes in developing a personal rapport among the prospective customers create a link with the customer to retain them for a longer period of time. It has been revealed that it is also important for the management of L’Oreal to evaluate the buying behaviour of consumers in both the business to business and business to consumer market segments. The report had identified that the corporate objectives lays an important impact over the sales strategies as they are been developed entirely based on these objectives only. It has been even found that the recruitment and selection process of the sales team would even contribute in acquiring the most suitable and capable candidate for promoting and selling the products and services of L’Oreal and contribute in the enhancement of the sales parameters of the new product line and establish its reputation within the industry. Setting benchmarks would also make the sales team to evaluate their performances and strive hard to meet the levels and acquire the levels of desired success out of it. The report recognized that it is very much important to maintain the databases with special concerns and security as it includes the personal and sensitive information of the customer which could be even misused by the unethical people.
Books and journals
Ashraf, I., Ashraf, F., Azhar, N. and Anam, W., 2015. The Case Analysis of L’Oreal Corp. as Market Leader. International Journal of Academic Research in Business and Social Sciences, 5(8), pp.131-148.
Brashear, T.G., Brooks, C.M. and Boles, J.S., 2015. Measurement of Distributive and Procedural Justice in Sales Management: Scale Development and Validation. In Proceedings of the 1999 Academy of Marketing Planning (pp. 220-220). Springer International Publishing.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated approach. Cengage Learning.
Ingram, T.N., LaForge, R.W., Avila, R.A., Schwepker Jr, C.H. and Williams, M.R., 2012. Sales management: Analysis and decision making. ME Sharpe.
Johnston, M.W. and Marshall, G.W., 2016. Sales force management: Leadership, innovation, technology. Routledge.
Oana, N. and Valentin, N.C., 2013. Financial Risk Management for the Enterprise L'Oreal Paris. Ovidius University Annals, Series Economic Sciences, 13(2).
Šírová, V., 2015. Managing Marketing Report On L’oréal Group. CRIS-Bulletin of the Centre for Research and Interdisciplinary Study, 2015(1), pp.31-46