Description
about Caro India (office automation products), segmentation, position, targeting, STP and other strategies
Drifting Dealmakers
Case facts
• Carlo India is an office automation and office furniture company • Deepak Sahi has just joined the company as a sales executive eight months back. Shekhar Munim is his boss • Munim is known to be a cut throat salesman and a target obsessed boss • He did not give much thought to developing his salesmen and never praised them for any of their successes but always pointed out any failure • He also bullied the customer and berated hos fellow salesmen in front of the customers
Case Facts (Contd.)
• Munim also picked on salesmen who failed to strike a deal. • He made sales without understanding the needs of the customer.
• What business is the company in? Ans. The company was in the office automation solutions business • What is the product? Ans. The product is office automation products like printers, fax machines, modems, telephone systems, etc. • What is the sales strategy? Ans. The company had two divisions:
- Active Accounts - Sour Accounts
• The active accounts division handled new accounts and continuation of ongoing or current accounts • The sour accounts section typically handled customers who had defected to competition in the past year and a half • Salespersons engaged in direct selling to customers as well as cold calling
• Who are the likely customers? Ans. Likely customers are firms who are setting up new offices and who will be in need of office furniture, stationery, automation and communication equipment. There are also the existing customers who would want to replace their equipment and stationery.
STP
• Segmentation:
– No specific segmentation on the basis of size of customer or his needs has been done
• Targeting:
– No targeting strategy adopted to select which segments to serve
• Positioning:
– The products are not positioned as solutions to the customers needs. Hard selling was done to maximize sales
• Problem Definition:
– No well defined segmentation, positioning and targeting strategy in place – No reward or recognition for sales made – Too much pressure on salespersons – No background study of customer in terms of requirements or financial capability
Solutions and Alternatives
• The sales force should be motivated by way of incentives and recognition of their work • A background study of customers to know more about their needs as well as their financial capability to pay should be checked • The company should act more as a consultant and office automation service provider rather than just a fax, xerox machine vendor.
STP strategy • Segmentation:
– The customers should be segmented according to their size as large or small customers as per their expected order size. More efforts can then be channeled to the bigger accounts.
• Targeting:
– The bigger accounts once identified, should be handled by concentrated efforts and more personalized service. – The smaller accounts can be handled by a separate team of salespersons.
• Positioning:
– The company should position itself as a consultant in office automation, more than a just a vendor of office equipment.
doc_544958544.ppt
about Caro India (office automation products), segmentation, position, targeting, STP and other strategies
Drifting Dealmakers
Case facts
• Carlo India is an office automation and office furniture company • Deepak Sahi has just joined the company as a sales executive eight months back. Shekhar Munim is his boss • Munim is known to be a cut throat salesman and a target obsessed boss • He did not give much thought to developing his salesmen and never praised them for any of their successes but always pointed out any failure • He also bullied the customer and berated hos fellow salesmen in front of the customers
Case Facts (Contd.)
• Munim also picked on salesmen who failed to strike a deal. • He made sales without understanding the needs of the customer.
• What business is the company in? Ans. The company was in the office automation solutions business • What is the product? Ans. The product is office automation products like printers, fax machines, modems, telephone systems, etc. • What is the sales strategy? Ans. The company had two divisions:
- Active Accounts - Sour Accounts
• The active accounts division handled new accounts and continuation of ongoing or current accounts • The sour accounts section typically handled customers who had defected to competition in the past year and a half • Salespersons engaged in direct selling to customers as well as cold calling
• Who are the likely customers? Ans. Likely customers are firms who are setting up new offices and who will be in need of office furniture, stationery, automation and communication equipment. There are also the existing customers who would want to replace their equipment and stationery.
STP
• Segmentation:
– No specific segmentation on the basis of size of customer or his needs has been done
• Targeting:
– No targeting strategy adopted to select which segments to serve
• Positioning:
– The products are not positioned as solutions to the customers needs. Hard selling was done to maximize sales
• Problem Definition:
– No well defined segmentation, positioning and targeting strategy in place – No reward or recognition for sales made – Too much pressure on salespersons – No background study of customer in terms of requirements or financial capability
Solutions and Alternatives
• The sales force should be motivated by way of incentives and recognition of their work • A background study of customers to know more about their needs as well as their financial capability to pay should be checked • The company should act more as a consultant and office automation service provider rather than just a fax, xerox machine vendor.
STP strategy • Segmentation:
– The customers should be segmented according to their size as large or small customers as per their expected order size. More efforts can then be channeled to the bigger accounts.
• Targeting:
– The bigger accounts once identified, should be handled by concentrated efforts and more personalized service. – The smaller accounts can be handled by a separate team of salespersons.
• Positioning:
– The company should position itself as a consultant in office automation, more than a just a vendor of office equipment.
doc_544958544.ppt