Lovely Professional University Term Paper On

Lovely Professional University Term Paper On Direct selling company “ORIFLAME” Sales force management. Submitted to: Mr. Krishan Gopal

(Lecturer)

Submitted by:-

Megha Tah RT1901B46 MBA (A)

“Each of us needs a helping hand to grow” The project wouldn’t have been the light of day without the help and guidance of many people. I take the opportunity to convey my deepest gratitude to those individuals who helped me during the preparation of this project. I would like to express my heart felt gratitude to those who contributed directly and indirectly in preparation of this report. First and foremost I would like to thank Mr.Krishan gopal lecturer of marketing management in lovely school of business. I am also thankful to my family, friends and God who have provided me support at every moment.

CONTENTS

SR NO. 1

PARTICULARS

PAGE NO

SALES FORCE MANAGEMENT -INTRODUCTION

01-03

2

OBJECTIVES OF THE STUDY

03

3

ORIFLAME OVERVIEW

04-05

4

SALES FORCE MANAGEMENT(PROCESS)

06-08

5

SUCCESS OF THE STORY

09

6

RESEARCH METHODOLOGY

10-11

7

SUGGESTION

12-13

8

CONCLUSION

14

9

BIBLOGRAPHY

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SALES FORCE MANAGEMENT

Introduction Sales force management is a specialized type of personnel management .whether personnel management focuses upon sales, production,or office workers, the same set of problems needs Considering, but each problem varies in nature and importance.it is impractical, for instance, to Exercise close and constant supervision over sales personnel-at least not in the sense that one can supervise production and office workers. Furthermore, sales personnel work away from their Co workers and immediate superiors, so it is difficult to develop a spirit of identity with and Loyalty to the company and to weld them into a unified team . Sales personnel of necessity are given freer rein than are production or office Workers. To a considerable degree, they are relied upon as individual to plan and control their Own activities. Most sales personnel visit the home office only infrequently, and centralized Direction of their activities is mainly by phone and mail. the salesperson’s job provides limited Opportunity for face-to-face contact and supervision, so sales personnel often are referred to As “account administrators” or “territory mangers”. Other unique conditions surround the selling job. Often the salesperson is Away from home and family for extended periods. Selling success (or failure) depends upon Prospects and customers actions and reactions; disheartening order turn down and rebuffs from Customers require the salesperson to repress normal responses and to suppress a natural Tendency to become discouraged .the psychological effects of these conditions accentuate the Need for sales management to pay continual attention to motivational factors . The steps in sales force management are the same as those in general personNel management. Sales force management work, starts with job analysis – determining the job Objectives , the component duties and responsibilities, performance criteria, and reporting Relationship. the output of job analysis is the written job description that is used in deriving Necessary qualifications (job specifications) of the employee. Qualified job applicants must Be found, and this requires decisions on recruiting sources and methods. From the supply of Applicants, those meeting the job specifications are selected .after hiring, applicants undergo initial training and throughout their entire careers with the company- receive continuing training through diverse delivery systems. Compensation plans are design to provide appropriate levels and methods of compensation.

1 When the salesperson is assigned to the field ,other personnel activities come

into play. the salesperson is motivated to plan and make productive use of working time .To improve the effectiveness of sales calls, salesperson are counselled on working habits and methods . Controlling sales personnel requires analysis of selling records and evaluation of sales performance. Sales force management activities mesh in to a system .Faulty execution of any activity results in complications for other activities. If recruiting and selecting are sloppy, training tasks are magnified, supervision problem become greater, motivating and controlling salespersons is more difficult and the turnover of the personnel is accelerated. If training is inadequate, potentially good people fail to reach high productivity, the compensation system doesnot work as planned, supervision is ineffective, and there is excessive personnel turnover. Similar “bundles” of difficulty arise in cases of ineffective performance of other activities in The sales force management system.

Steps in Sales Force Management Recruitment and selection Training Supervising Motivating Evaluating a)Recruiting begins with the development of selection criteria - Customer desired traits -Traits common to successful sales representatives - Selection criteria are publicized - Various selection procedures are used to evaluate candidates. b) Training topics include: -Company background, products - Customer characteristics -Competitors’ products - Sales presentation techniques - Procedures and responsibilities - Training time needed and training 2 .

C) Motivating the Sales Force - Most valued rewards Pay, promotion, personal growth, sense of accomplishment - Least valued rewards -Liking and respect, security, recognition -Sales quotas as motivation tool. - Supplementary motivators. d) Evaluating the Sales Force - Sources of information -Sales or call reports, personal observation, customer letters and complaints, customer surveys, other representatives - Formal evaluation -Performance comparisons -Knowledge assessments.

Objective of the study 1. To consider the role of selling in organizations, whether it is selling to consumers, to resellers, or to businesses. 2. To identify the tasks that sales people must fulfil. 3. To consider how a firm can identify the best salespeople. 4. To recommend ways of managing and motivating a sales force. 5. To consider appropriate compensation plans and the setting of quotas for salespeople. 6. To set up a sales organization and the best way to design sales territories.

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Oriflame Overview:Oriflame is today one of the fastest growing beauty companies selling direct. We are present in 61 countries, of which we are the market leader in more than half. We offer a wide range of high-quality beauty products as well as a unique opportunity to join our sales force and start your own business. As of today, our sales force consists of 2.8 million Consultants that are marketing our products around the globe. Oriflame was founded in Sweden in 1967 by Jonas and Robert af Jochnick and their friend Bengt Hellsten.

Facts of oriflame • • • • • • • • • •

1.3 billion Euros in annual sales 2.8 million Consultants 7 500 employees 900 products annually Co-founder of World Childhood Foundation. Global R&D centre with more than 100 scientists 5 own production units in Sweden, Poland, China, Russia and India Listed on the OMX Nordic Exchange since March 2004 Products based on natural ingredients, never tested on animals Operations in 61 countries of which 13 franchisees.

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VISION Our vision is to make Oriflame the first name that comes to mind for anyone looking for affordable quality cosmetics or a career with a friendly direct sales company. Oriflame offers a smart way of selling and buying. Our direct sales system benefits customers and Consultants alike. For the customer, it offers a reliable, convenient and fun way to buy from a friend, with personal advice, ideas and inspiration as well as full money-back guarantee. Oriflame is also a company of choice. Whether you prefer to sell by holding Beauty Demonstrations or simply distributing Catalogues to your family and friends - the choice is yours. As a Consultant you'll have dynamic income and career opportunities as well as enjoying unlimited potential for personal development. Though our Consultants work independently, they are also conscious of being part of a highly supportive global family. Moreover, Oriflame also offers wide-ranging sales training and leadership development programmes. These are more special facts … 1967 Founded in Sweden. 1970 First Oriflame Consultants start selling in the UK. 1972 Oriflame Ireland opens as a licensee. 1988 First Catalogues published in the UK. 1998 Change to current Success Plan. 2003 Oriflame UK and Ireland reach 7,000 Sales Consultants. 2006 Oriflame UK and Ireland became part of Premier Direct Group PLC. 2008 1st July - Oriflame was purchased by Kevin Kenny (formerly CFO of the Oriflame Group) and Eric McClenaghan (formerly CEO of PDG Plc) Seize the Oriflame opportunity today! 5

Sales force management of oriflame A ) RECRUITING 1. Complete a Consultant Registration Form together with your Sponsor - It is FREE TO JOIN! 2. You receive your own Business Case* with all the material you need to get started. Ask your Manager for more details. 3. Take advantage of the Oriflame Welcome Programme for new Consultants. * The Oriflame Business Case includes the following: Oriflame Shoulder Bag, Consultant Binder, Skin Care Guide, Colour Chart, Paperwork, two full-size products and Lip, Skin and Fragrance Samples

B) TRAINING-PERSONAL DEVELOPMENT Your Sponsor will be your personal coach in the building of your business. You will also be offered different kinds of sales, marketing and training tools to help in building up your business, like for example your own virtual office on the internet, a personal Oriflame homepage and a Consultant newsletter full of information and recognition. Every new Consultant is invited to attend their first two free training sessions as soon as they join.

C)MOTIVATION Once you have reached the Manager level, you automatically become part of Oriflame's Independent Leadership. This is the first important step in the path to growing as a Leader, by embracing your new role, participating in your Area and Upline training and with the support of the company, it won't be long before you're qualifying for further levels yourself.

REWARDS Selling Oriflame cosmetics is easy. Anyone can become an Oriflame Beauty Consultant - no prior sales experience is necessary. There are three ways of making money with Oriflame: 6

Show Catalogues to your friends, neighbours and colleagues and take orders. A personal and stress-free way to shop. Earn an immediate discount of 23 to 30%.(Rules Apply)

Invite others to join Oriflame and build a team of Consultants, you'll earn commission from the sales of the Consultants in your group. As your team grows, your earnings will also grow, and you'll qualify for trips to exotic destinations and many other rewards.

Hold Beauty Demonstrations. we will provide free training in how to demonstrate and sell Oriflame products to a group of your friends or family - allowing you to earn even more.

D) EVALUATION 1) Oriflame attend local sales meetings held by customers. 2) Counsel customers on their problems. The following companies are the major competitors of Oriflame Cosmetics S.A. Avon Products, Inc. L'Oreal S.A. Shiseido Company, Limited Revlon, Inc. Oriflame Evaluation of performance with above competitors. Evaluation Technique OF Sales Person used by Oriflame (this is a GUPP) The practice Oriflame and the methodology used to address salesforce design and productivity questions is a "Bottom Up" approach. This approach starts with assessments by each salesperson of the sales and ef- fort corresponding to each customer and prospect in their territory. These assessments are then aggre- gated to the territory, district and national levels. This paper takes an alternative "Top Down" approach. It is based on an estimated relationship between district level sales and salesforce size, effort and other variables. This more macro level decision tool can be used by management in parallel to, and as an objective check of, the more conventional and more subjective "Bottom Up" approach..

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Oriflame’s sales force management system helps businesses and organizations to manage customer relationships in an efficient and meticulous manner. Today’s competitive environment demands a need to build and sustain while keeping costs reasonable and delivering quality and timely results. Our sales force management system includes a contact management system which tracks all contact that has been made with a given customer, the purpose of the contact, and any follow up that might be required. This ensures that sales efforts won’t be duplicated eliminating the risk of irritating customers.

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SUCCESS STORY OF ORIFLAME I joined Oriflame 30 years ago so that I could buy a new pair of curtains! I am now one of the most successful Leaders in the UK and Ireland's history. It is exciting being in control of what you can earn, and not having to wait for someone to leave to be promoted. There is always someone new in the team to nurture, develop and help to succeed. Thanks to the Oriflame family we can reach the seemingly unreachable - being a winner and number one!" Jackie Senior Regional Manager MY FIRST DESIGNATION IN PAST 25 YEARS "I always seemed to come up with an excuse to "start next week" and definitely intended with a Demonstration in my own home where I would feel completely at ease! The next thing I knew I was booked to do a party in Aldershot. I could not believe how nervous I felt that morning. I was sure, like everyone said, once I started (because I could sell Oriflame to anyone as I 100% love and believe in it) I would be absolutely fine and just "enjoy". Off to a good start - about 13 ladies there. Next thing I couldn't hear my own voice for the football match in the adjacent room and the excited shouts of the fans! Also, there was no air conditioning and the heat was unbelievable. How I managed to block out the noise and get the girls attention I do not know... actually I do... because everyone thought the products looked so lovely, they were thrilled to be able to test them themselves as a friend passed them around whilst I was demonstrating. They loved the Catalogue and were wowed at the hostess's look (I did a quick makeover). Everyone had a great time, I survived, have at least six bookings, £314 sales and can honestly say I can't wait to do the next Demonstration which I'm sure will be an absolute doddle compared to my first Demonstration in 25 years!"

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RESEARCH METHODOLOGY RESEARCH DESIGN •

PRIMARY DATA is collected through direct interview with oriflame distributors. •

SECONDARY DATA is being search sites like magazines, newspapers, journals,

websites and the data has been collected through other approaches.

DATA COLLECTION The researcher collected information through the official websites, and journals.

DEVELOPED THE RESEARCH FRAME: This included deciding upon various aspects for the project on which the entire research is based. The research frame included:

NATURE OF STUDY The project on which the researcher worked is descriptive and inferential in nature.

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DATA SOURCE: The researcher took the help of both primary as well as secondary sources. Secondary sources being interaction with various whirlpool showrooms of the selected and has been chosen for the research by the researcher. Secondary sources being the internet as the medium and the official sites of the whirlpool company

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Suggestions Sales Force Management – Make it pleasure not a pain First, take a hard look at how you approach sales force management. If you assume that all your sales force management endeavours are going to be painful and time-consuming, they probably will be! After all, it’s a self-fulfilling prophesy. On the other hand, if you envision sales force management as a way of becoming a better leader or growing closer to your employees, you might just be able to put sales force management in a positive light. And your optimism toward sales force management will be contagious. Sales Force Management – Led By Example One of the secrets to successful sales force management is to always behave the way you want your employees to ACT . This means no surfing the Internet or using the old, “It’s Friday afternoon; why bother making prospect calls?” phrase; those actions will not equate to outstanding sales force management. To be a top-notch supervisor, you need to be someone to whom your staff can look up. Thus, one of the mos t important elements of your sales force management is to be the type of seller you want your colleagues to become. Sales Force Management – Develop your own style Of course, there’s no reason why your sales force management should be the same as the sales force management strategies of the gal or fellow in the office down the hall. Truly, how you approach sales force management is completely unique and should reflect your personal interests. For example, if you have a particular way of handling meetings (say, you prefer to hold them offsite at a local doughnut shop), by all means take your sales force management techniques and run with them! Never be afraid to be yourself; that’s one of the key s to great sales force management. Sales Force Management – Reward Your Employee Another strategy that the best sales force management leaders employ is honouring their staff members. Unfortunately, many people who could be great supervisors (and should be practicing terrific sales force management techniques) forget that saying, “Thank you” or “You did a good job” sometimes isn’t enough. To become truly savvy at sales force management, you really need to be big and bold in the way you reward your most talented workers. For instance, a good sales force management technique is to offer weekly incentives to top sellers. This keeps everyone on their proverbial “toes”. 12

Sales Force Management – Stay In Touch Sometimes, sales managers are practically invisible, lending to poor sales force management. If you’re always on the road or in your office, it’ll be difficult to practice excellent sales force management. To be an effective sales force management leader, you need to have your fingers on the pulse of your sales operation, which means getting out there and working with and listening to employees. Join them for sales calls. Periodically take them to lunch. Ask how people are doing (and pay attention to the answers!) When you know what’s going on, you’ll be able to practice sales force management in a way you might never have imagined. Sales Force Management – Stop Problems Before They Get Out Of Hand Have a problem employee, Don’t let him or her ruin your entire workforce. Sometimes, leaders turn a “blind eye” to the people who are sapping their organizations of morale. However, if you want to practice exceptional sales force management, you need to clamp down on anyone who is creating a negative atmosphere. Is it the easiest part of sales force management. But it’s essential to developing yourself; after all, you must show your workers that someone is in charge. Sales Force Management – Give Staff Tools For Work Too often, people forget that sales force management also means providing employees with the necessary tools to get the job done right. If you want to practice sales force management, you need to ensure that your workers are not being thrust into the world without any ways of succeeding. One of the best sales force management tools you can give them is computer software such as Prophet. This program works with MS Outlook and can streamline prospecting, customer service, and reporting processes. Sales Force Management – Let Others Lead Finally, one of the best ways to practice sales force management is to allow others to be leaders as well. As a sales force management guru, you should be able to sit back and watch your employees take on leadership roles without feeling envious or concerned. Too often, many people who say they support sales force management don’t because they are worried that a worker might outshine them. Don’t think in that way. Instead, help your staff achieve greatness if one of them surpasses you, then so be it. But never hold them down; that’s not good sales force management. Instead, applaud them as they climb the corporate ladder; as a leader in sales force management, that’s what you are expected to do. 13

Conclusion Oriflame is a renowned brand that focuses on direct selling and its major sales comes from personal selling as they believe that word of mouth is the best advertising method. They have very effective and efficient set up of selling products however, by managing their sales force more competently they can augment their sales. As it’s a well observed fact that youths are more narcissists, than people from mature age groups. So targeting students of these age groups for buying products and adding them to their consultant’s team can boost up the sales. This can easily be done by enticing students with some extra pocket money and giving them some attractive marketing training to improve their skill set for job market. Oriflame can also plan some beauty events in various campuses across India to attract prospective customers. Oriflame though is a fair employer as far as career progression is concerned but it hardly offers some rewards and recognition to its sales team. So, in order to improve other members motivation, Oriflame can offer pay supplements to its sales team during Diwali and New Year. This will help Oriflame to keep its employees morale high and also will encourage other people to join its sales team. There is always a scope for improvements in every kind of the businesses. Oriflame, especially in India has no culture of innovating improvements in their existing business models. This can ask for Total Employee Involvement, and accounts for his/her suggestions for making the whole business efficient. It can also encourage existing customers for their feedback and implementing best suggestions to their Business. Presently, sales team here is not involved in improving the things and a consultant is just involved with his sponsor and not encouraged to meet his managers and ask his proposals. They can also link best suggestion with giving them recognition and displaying their names in magazines or catalogues.

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BIBLIOGRAPHY

Sales management –Richard r .still,Edward w.cundiff & Norman pg-288

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Website: www.oriflame.co.uk/aboutoriflame/contents/companyoverview.jhtml.

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Indian journal of Marketing- nov 2009( pg 57)

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Business today –Magazine (pg 14 )26th oct 2009.edition

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