Sales Plan For Powerage Energy Drink In The KT Postcode Area

Identification of the Market opportunity

1).Identification of the Market opportunity

The primary stage of the planning process is the identification of the product and market environment.  This step includes assessment of the consumer demand and availability of the product in the market (Brinckmann and Kim 2015). Analysis is to be made whether the product will be accepted by the market or not. The new product to be launched is a energy drink named “Powerage” and the market identified is he various local malls, shops and office canteens. The demand for the non-alcoholic beverages is growing day by day especially within the young generations who frequently visit the malls. The key market players are Coca Cola, Fizz, minute –maid an red bull providing a similar product in the Kingston region (Watson, McGowan and Cunningham 2018).

2).Sales Objectives for 12 months

3).Sales Environment

The business-to-business sales environment refers to the exchange of products between two markets that is there is no final consumer. It refers to the interaction between a manufacturer and a retailer. Powerage will deal with the independent retailers, shopping malls, restaurants, house associations and move halls in the KT Post Code Area (Marwah 2017). The area that would be covered will be small and medium sized trade shops. Decision-making will be held within the area. The target organisations in the Kingston area of the product to be distributed are given in the following tables:

The list of the primarily retail stores, shopping malls, restaurants in the Kingston area (KT1 to KT25) to maximise the sales:

4).Target segments and Prioritisation

5).Target customers in each segment:

6).Decision making process of target customer:

The decision making process of the target customers depends upon the potential buyers and the location where the product is going to be sold (Ferrell and Fraedrich 2015). The decision-making is a very vital process as the profitability of the product relies on it. In this stage, the problems, specification, quality and various other decisions are taken. Here, a relationship is build between the business and the target customers.

The decision making process is shown in the following table:

6).DMU for each targeted customer

The Decision making unit consist of the individuals who take part in the decision making process. The DMU officers are a buyer, influencer and the decider of the product. They are the users of the product who hold the power of taking derisions of the product (Shapiro and Stefkovich 2016). The decision-making unit of Powerage in the KT area is shown in the following table:

Sales Objectives for 12 months

7).Geographical concentration

The Geographical spread of the sale of Powerage product consist of the independent retail stores, restaurants, shopping malls and movie halls of the KT post area are chosen as the spread. The approximate area covered is 177 square miles (Frank, Mashevskaya and Ermolina, 2016). Two clusters from KT1 to KT2 and KT6 to KT8. According to the positioning of the retail stores, and restaurants the geographical concentration is determined. The products must be delivered in such a way that the time spent in unnecessary travelling minimized. Each of the postcodes the product must be available.

8).Number of sale cycles with justification

The selling cycle denotes the stages ad processes of making the sale from initial point of contact with the customers, placing the order, until the proceeding of the sales. In rte case of Powerage energy drink, there would be two main sale cycles that is summer and winter. Summer is when there would be more demand for cold drinks and energy providing beverages and the winter cycle is when the rate of sales would be low, as one prefers hot drinks during that period (Albert  2017).

The main cycles included will be generated by:

1. Prospecting & qualifying
2. Plan to initiate sales
3. Approaching the prospect
4. Sales presentation and demonstration
5. Negotiating resistance and any objections (resolving them)
6. Confirming closing the sale
7. Following up (contacting by email or phone)

9).Sales visit per customer per company

The number of visits per customer per company depends upon specific needs of the consumers and the DMPs. It requires much planning in the first three months. As Powerage is a new product, the frequency of the sales visit should be more. The sales visit provides with various information of the sales of the products in the market along with the feedback. For this product, the sales visit would be once every three months to the retail stores, movie halls and shopping malls. The sales visit help in building a strong relationship with the buyer.

10).Time interval between each visit with justification

In order to get complete and accurate knowledge about the sale of the product the time interval set is three months. The time interval will help in ensuring in generating profit and cost effective processes. The individual customers can give the best information after consuming the product.

11).Sale Call Objectives

12).Sales Representatives needed to cover geography/visits/timescale

The sales representative identifies the buyers and takes a survey in the market to understand better about the sales of the product. The following table shows the number visits to be covered in the KT areas buyers along with the Timescale.

Sales Environment

13).Additional training for the representatives along with justification

The sales representatives need additional training that makes them more efficient, so that they can effectively obtain more information of the product and enhance the profit (Coibion, Gorodnichenko and Hong 2015). They must be fully educated regarding the promotion process and communicate effectively with the buyers. Hence, additional training is mandatory for them.

14).Recruitment procedure of the representatives and justification of the process

In case of the recruitment and selection process, the knowledge about the job vacancy is to be conveyed through internet, newspaper or any other sources (Board 2017). The job description and the specialization of the job are informed through this process only. The interested candidates who are seeking for the job, connects with the company and after interview and the selection procedures, they are recruited.

15).Cost of sales representatives

The various costs, which are attached with the sales representative, are:

16).Local communication & Local Promotion 

Powerage uses various tools for its promotion. The tools include local TV advertisements, pamphlets, newspapers, hoardings and many more. The promotion through word of mouth is also an important technique.

17).Promotional tools to support sale calls 

The promotional tools, which would help the sales representatives when they are conducting a face-to-face sales call, consist of laptops, leaflets and brochures (Mendez et al. 2015). The laptop allows to visually representing the features of the product, the leaflet would presents handy copy of the product information and the brochures includes pages in A5 format regarding the features of the drink.

18).Approximate Budget required to fund each channel of communication & promotion

19).Selling Price and anticipated profit margin

The bottles are sold to the buyers in boxes. There are variety of boxes consisting of 100, 150, 200 bottles each. The boxes are to be sent to the various stores, malls ad movie halls according to the requirement. Different boxes have different flavors. The following table represents the sale plan for the following 12 months:

 Introduction:

The sales plan deals with the strategy that sets a target for the business and the various steps to meet the same. It activates and motivates the various procedures to reach the sale goal. A sale planning is an essential element of sales success (McKenzie 2017).  It refers to the process that sets a plan of action and cautiously identifies the steps to maximize the sales and profit. A sale plan is prepared before each financial period and is it made sure that actions are according to the plan.  In general, terms, Planning is a forecast of future environment and sensible decision making to implement the strategies into operational activities (Finch 2016). The sales plan initially starts from setting out the future strategies then indentifying the market and customers along with the implementation of the strategies. In the following discussion, a Sales Plan is being structured of a launch of a non-alcoholic beverage product named “Powerage”, in the local shops and shopping malls in United Kingdom.

References:

Albert, R., 2017. 7 Sales talk and sales training. Handbook of Business Communication: Linguistic Approaches, 13, p.131.

Bilginer, Ö. and Erhun, F., 2015. Production and sales planning in capacitated new product introductions. Production and Operations Management, 24(1), pp.42-53.

Board, G., 2017. Recruitment & Selection.

Brinckmann, J. and Kim, S.M., 2015. Why we plan: the impact of nascent entrepreneurs’ cognitive characteristics and human capital on business planning. Strategic entrepreneurship journal, 9(2), pp.153-166.

Coibion, O., Gorodnichenko, Y. and Hong, G.H., 2015. The cyclicality of sales, regular and effective prices: Business cycle and policy implications. American Economic Review, 105(3), pp.993-1029.

Ferrell, O.C. and Fraedrich, J., 2015. Business ethics: Ethical decision making & cases. Nelson Education.

Finch, B., 2016. How to write a business plan. Kogan Page Publishers.

Frank, E.V., Mashevskaya, O.V. and Ermolina, L.V., 2016. Innovational Mechanism of Implementation of Cluster Initiatives in Business. European Research Studies, 19(1), p.179.

Goodwin, P. and Wright, G., 2014. Decision Analysis for Management Judgment 5th ed. John Wiley and sons.

Marwah, R., 2017. Unit-3 Consumer Enviornment.

McKenzie, D., 2017. Identifying and spurring high-growth entrepreneurship: experimental evidence from a business plan competition. American Economic Review, 107(8), pp.2278-2307.

Mendez, M., Bendixen, M., Abratt, R., Yurova, Y. and O’Leary, B., 2015. Sales promotion and brand loyalty: Some new insights. International Journal of Education and Social Science, 2(1), pp.103-117.

Shapiro, J.P. and Stefkovich, J.A., 2016. Ethical leadership and decision making in education: Applying theoretical perspectives to complex dilemmas. Routledge.

Singhai, A., 2016. Market potential, market share and farmers perception on insecticides in dhamtari district of chhattisgarh with reference to syngenta india limited (Doctoral dissertation, JNKVV).

Watson, K., McGowan, P. and Cunningham, J.A., 2018. An exploration of the Business Plan Competition as a methodology for effective nascent entrepreneurial learning. International Journal of Entrepreneurial Behavior & Research, 24(1), pp.121-146.

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