COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL

PROJECT ON SALES MANAGEMENT

A COMPARATIVE STUDY OF SALES FORCE OF ABB, TATA TELECOM & HCL IN MARKETING OF SWITCHING DEVICES IN INDIA
Submitted to :Prof. Surendra Sanghwan Submitted by:Gaurav Bhalla 2k F-115 Nitin Oberoi 2k- F -133 Rajat Dhall 2k F- 142

INSTITUTE OF MARKETING AND MANAGEMENT NEW DELHI

COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL

PREFACE
The Project was taken up in a broad perspective of comparing the sales force of various (in fact three) companies and thereby understanding the working methodology and functioning of a sales organisation. We have considered certain parameters and guidelines with respect to which we compared TataTelecom, ABB and HCL who have a common product Switching Devices.

The project not only throws light upon the basics of sales management but also gives a nice picture of Switching device market in India by comparing the basic functioning of sales force of above said companies.

COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL

ACKNOWLEGEMENT
We would like to express immense gratitude to all the employees of HCL Noida, ABB, Kalkaji and TATATELECOM, Gurgaon who have taken immense pain to entertain our group and spent their precious time to fill up the questionnaire and imparting the necessary information, Especially Mr. U.P.Maharane, Mr.

Ramakanth of HCL, Mr. H.K. Pandey of ABB and Mr. Shailendra Kumar Pandey and Vineet Diwan of TATA TELECOM who have helped us throughout. We would also like to thank our Professor Mr.Surendra Sanghwan for guiding and motivating us in a very practical way sometimes as a friend and sometimes as a guide in accomplishing this project.

COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL

SYNOPSIS
Switching Device is a generic term and includes various kinds of product, which are basically used for data transmission and telecommunication. These electronic devices are made up of semiconductors and very costly and have only industrial application .To visualize them more we can see the product description later on in the project. Though the product we have chosen is too technical and appears as if there would be very less requirement of direct selling in marketing of the product. But it was really surprising and interesting for us also to know the importance of direct selling in the overall marketing strategy of the product. We also studied the various other aspects of the sales organisation e.g. the Quota system, Selling objective, Training need identification, Performance appraisal etc and prepared a very concise report comparing all of them and later on highlighting the commonalities and differences in them

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COMPANY PROFILE
HCL INFORMATION SYSTEMS
HCL Info systems Ltd. (HCL Insys) is India's premier information technology company. With its in-depth expertise in developing solutions spanning diverse technologies, HCL Insys aims to propel its course on to the high-growth path of 'Total Technology Integration'. Leveraging its expertise in total technology solutions and services, HCL Insys offers value-added services in key areas such as SAP implementation, software applications, networking consultancy and management and a range of support services. To capture the two ends of the market spectrum - enterprise solutions and PCs - HCL Insys has made significant strategic infrastructural investments in the Professional Services Organisation (PSO), the Support Services Organisation (SSO) and in its manufacturing plants at Noida and Pondicherry. The approach is to view hardware as one of the key components of the total solution. The build-up of the services business (both of PSO and SSO) would enable HCL Insys to offer complete solutions and will also raise manufacturing volumes to internationally competitive levels. Established in 1994, HCL Insys' PSO provides single-window enterprise solutions in key vertical segments of telecommunications, manufacturing, finance & banking, government, utilities and transportation. Spearheading HCL Insys' thrust on software exports, the PSO's infrastructure comprises a taskforce of 600 software specialists, four software factories with SEI-CMM level 4 certified processes, and dedicated 'Centres of Excellence' for SAP and telecom solutions. Significant SAP implementation projects by the PSO include General Motors, HM Lancer, Kalyani Brakes, and Samsung. PSO's

COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL

projects involve high-level integration projects and functional consulting and implementation services for ERP (Enterprise Resource Planning). Continuously increasing customer expectations and applications, its focus on integrated enterprise solutions have strengthened the HCL Insys SSO's capabilities in supporting installation types ranging from single to large, multilocation orders. The SSO, comprising a direct support force of over 800 members, is operational at 151 locations across the country and is the largest such human resource of its kind in the IT business. A majority of the SSO has been specially trained in supporting solutions, the company's key focus area. HCL Insys' manufacturing facilities are ISO 9001 - 2000 & ISO 14001 certified and adhere to stringent quality standards and global processes. With the largest installed PC base in the country, three indigenously developed and manufactured PC brands - 'Infiniti', 'Busybee' and the 'Beanstalk' and its robust manufacturing facilities, HCL Insys aims to further leverage its dominance in the PC market. HCL Insys' 'Infiniti' line of business computing products is incorporated with leading edge products from world leaders such as Intel. A fully integrated and business-ready intranet family of servers and workstations, the 'Infiniti' line is targeted at medium and large companies to help them to manage their intranet-related applications. As customers' needs mature, the IT industry has witnessed a continual evolution through a progressively finer segmentation of markets. To become a dominant player in providing global IT services; HCL Insys has reorganized and consolidated its hardware and services businesses. Towards this, it has set-up overseas subsidiaries in the US, the U.K., Singapore, Malaysia and Australia. The Frontline division of HCL Insys markets national and international brands of computer systems (including Toshiba Laptops) and peripherals within the

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country. With its extensive network of 800 resellers across 300 cities, Frontline Division has actively promoted the penetration of PCs in the home and the small office/home office (SOHO) segments. To provide its users innovative support services and solutions, the Division has established a countrywide network with 205 partners across 100 cities, termed the "Support Net". Focusing on the small and medium enterprises (SME), the small office/home office (SOHO), the home and the First Time User (FTU) segments, the Frontline Division aims to become a dominant purveyor of IT products by value added services and enhanced solutions to its customers. HCL Insys' Office Automation Division, previously known as HCL Office Automation, markets and supports Toshiba photocopiers, In Focus multimedia projectors, Duplo digital duplicators, Ericsson EPABX, Samsung Key Telephone Systems, and Nokia cellular phones. The Division's vast distribution and support network spanning over 100 locations and over 400 experienced personnel further reinforce its strong operational capabilities. Among the specific initiatives undertaken by the OA Division are customer meets held across the country, President Club meets, tele-audits, and setting up of IVR (Interactive Voice Response) HelpDesks. HCL Insys' initiatives in setting national and international industry standards in technology, solutions and processes led to the establishment of two unique programme - "Program Infiniti" in 1992 and "Enterprise 2000" in 1994. "Program Infiniti" is a consistent and continuous plan designed to upgrade and modernize HCL Insys' entire hardware and software capability to worldclass standards. "Enterprise 2000" is a unique programme with an aim to provide IT solutions to customers, to place them at the cutting edge of their respective businesses in the new millennium. In keeping with its objective of

COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL

total quality management, over 70 percent of its employees are being trained under the Phil Crosby methodology of Quality Education System. In 1992, HCL formed a joint venture company, HCL HP, with the international computer giant, Hewlett-Packard (HP), and precipitated a technological leap by achieving world class manufacturing expertise in the country for HP's RISC/UNIX based business servers and workstations. In 1997, HCL and its joint venture partner, HP, re-organized their joint business activities in India through the buying back of HP's 26 per cent of equity in HCL HP by the HCL promoters. Following the government's decision to open up the distribution of Internet services to the private sector, HCL Insys, under a new initiative called WWW.OW provides a complete range of solutions for the Internet. These services include setting up of infrastructure for ISPs, solutions for cybercafes, information kiosks, Net-on-TV, corporate Intranet and extranet (VPNs), infrastructure for smart cities and a set of management services such as facilities management, network management etc. With an enlarged business focus, HCL Insys has strengthened its multiple strategic alliances with specialists to include world leaders such as Intel for PC and PC Servers; Microsoft, Novell and SCO for operating systems and software solutions; Toshiba Corp. for business automation equipment; SAP AG for specialist ERP solutions; and Oracle, Sybase and Informix for RDBMS platform. Indeed, a vision to create enterprises of tomorrow.

COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL

ABB
The Company was incorporated on 24th December 1949 as Hindustan Electric Company Limited. In 1965, the Companys name was changed to Hindustan Brown Boveri Limited (HBB). Pursuant to the Scheme of Amalgamation of Asea Limited with HBB with effect from 1st January 1989, the name was further changed to Asea Brown Boveri Limited (ABB) with effect from 13th October 1989. Flakt India Limited was amalgamated with ABB with effect from 5th October 1995. During 1994-95, a joint venture Company - ABB Daimler-Benz Transportation AG (Adtranz) was established by ABB Zurich and Daimler-Benz AG, Germany, in Germany. A subsidiary of Adtranz was incorporated in India viz. ABB Daimler-Benz Transportation Limited which took over the Transportation Business of the Company effective 1st January 1996. ABB is a subsidiary of ABB Zurich, which is now an entity focused on T&D, automation and robotics. Earlier, ABB worldwide was into the businesses of power generation (through a joint company, ABB-Alstom Power) and distribution and industrial systems. It has recently announced the sale of its holding in ABB-Alstom Power to Alstom for a consideration of Euro 1.25bn. So, ABB's only venture in India would be ABB Ltd, as it would be getting out of the remaining ventures. Capital: The Authorized Share Capital of the Company is Rs.500, 000,000 and the paid-up share capital of the Company as at the end of the financial year

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ended 31st December 1999 is Rs.414, 183,560, consisting of 41,418,356 Equity Shares of the face value of Rs.10 each. Shareholding Pattern: Asea Brown Boveri Limited, India, is a partly owned subsidiary of ABB Asea Brown Boveri Limited, Zurich, Switzerland (ABBZH). ABBZH and Flkt AB, Sweden, a 100 percent subsidiary of ABBZH, hold 50.99% of Equity Shares in the Company. The balance stake is held by: FIs 22.14%, FIIs 3.63%, MFs 2.32, Non-resident Individual 0.08%, Nationalised Banks 0.15%, Bodies Corporate 0.93%, Directors and their relatives 0.01%, NSDL (Transit) 1.95% and General Public 17.8%. ABB Ltd's business mainly encompasses power T&D and industrial automation. The T&D segment is expected to be a major beneficiary of new projects of Power Grid Corporation of India Ltd (PGCIL), and the proposed privatization of the T&D segment. Incremental capacities of 28000MW have been targeted by 2002. Every MW of power generating capacity leads to an Rs20mn demand for T&D equipment. Industrial systems are expected to stage a recovery with an upturn in the economic cycle and increase in core sector investments ABB has the capability to manufacture a whole range of T&D equipment comprising of transformers, HV and MV switchgears, cables, capacitors, sub-stations and management systems and a host of other equipment especially HVDC equipment. ABB has begun the rollout of the 400KV Trafostar transformers from its recently commissioned transformer facilities at Maneja in Vadodara.

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TataTelecom
Setting up business on the Indian sub-continent in 1987, today Tata Telecom is an undisputed total business solutions provider. With technical

collaborations and partnerships with Avaya, Tata Telecom is fully equipped to offer a gamut of state-of-the-art communication systems. Tata Telecom is a rare organisation in India with proven and comprehensive skills in R&D, Technical support, Manufacturing, Sales and Customer Support areas of expertise. Tata Telecom's Business Communications Division (BCD) provides complete communication solutions for Business Enterprises. Its product range includes EPABXs, KTS, Voice Mail Systems, Interactive Voice Response Systems (I.V.R's), and CTI & Networking_Solutions.

Our constant endeavor to understand complex customer needs has resulted in a range of products and solutions. The range includes Telephony, Mobility Solutions, Messaging Solutions, Conferencing, Call Center Solutions, and Data Networking.Hence,Tata Telecom provides solutions across all segments - Homes to Shops, Small to Large offices, Factories and large Industrial units, Banks, Call Centres and 3-4 Star Hotels, Hospitals, MNCs, large Indian corporates, departmental stores, etc..The unbeatable product range of Tata Telecom includes the latest in each segment

The technological superiority, comprehensive R&D, upgraded systems, wide service 3reach, strong customer base and the equity associated with the Tata heritage .

COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL

About The Product Switching Devices

EPABX of TataTelecom

EMC of HCL

Kajun M770 of ABB

COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL

Fig. Switching Device products

EPABX of TATA TELECOM is designed specifically to provide the reliability required for the convergence of voice, data and video into a common infrastructure, and features its unique Switch Architecture For Extreme Resiliency (SAFER) that distributes critical switching, management and processing functions. EMC of HCL is the foundation for a total networking solution. It is an exceptionally powerful 80+ Gbps resilient multiservice, multilayer, intranet service center and the first enterprise backbone switch which integrates multilayer switching over 100 Mbps, 1 Gbps and ATM over a single, fullyredundant hub. This support for a broad range of network environments allows enterprises to use any combination of these technologies with no need to adhere to any single technology today The modular, enterprise-class kajun M7T70 Multifunction Switch of ABB is designed specifically to provide the reliability required for the convergence of voice, data and video into a common infrastructure, and features its unique Switch Architecture For Extreme Resiliency (SAFER\231) that distributes critical switching, management and processing functions. Basis Of the Study We developed certain guide lines and decided the following key parameters which we considered as the most important for visualizing the functioning of a sales force 1. The role of personal selling in overall marketing strategy 2. Selling objectives and strategies.

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3. Key objections faced by sales personnel 4. Overview of the sales division 5. Responsibilities of the sales executives. 6. Strategies for tracking competitors activities 7. Recruitment process, Selection, Training and compensational

strategies for the sales force 8. Factors taken into account while assigning quotas 9. Performance appraisal system and methods 10. Basis of formation of sales budget and sales forecasting 11. Reporting format and frequency 12. Size of the sales force

Theoretical Perspective
1. Selling objectives and strategy 1. 2. Qualitative (Long term objective) Quantitative (Short term objective)

Qualitative objectives are long term and concern the contributions management expects personal selling to make in achieving. These objectives change little over time and generally are carried over from one periods promotional program to next. The basic considerations influencing the setting of qualitative personal selling objectives are closely related to the key decisions on sale policies and personal- selling strategies. These decisions

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determine the kind and size of personal-selling operation that like company has and its role in the total promotional program. After the role is defined, qualitative long-term personal-selling objectives become the major

determinants of the types of quantitative short-term personal selling objectives. For e.g. a. To reach out and obtain new customer. b. To service existing accounts i.e. to maintain contact with present customers, take orders and so forth. c. To keep customers informed on changes in the product line and other aspects of marketing strategy. d. To provide advice and assistance to middleman on various management problems. e. To collect and report market information of interest and use to company management.

Quantitative Objectives are short-term objectives and are adjusted from one promotional period to other. The sales volume objectives- the rupee or unit sales volume management gets as the target for the promotional period-is the key quantitative objective. All other quantitative selling objectives derive from or are related to the Sales volume objective. For e.g. a. To capture and retain a certain market share.

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b. To obtain sales volume in ways that contributes to profitability. c. To obtain some number of new accounts of given types. d. To keep personal selling expenses within set limits. e. To secure targeted percent of certain accounts business. Sales related marketing policies are guidelines within which the company seeks to reach both quantitative and qualitative personal selling objectives. They provide general guidance on what to sell and whom to sell to shape the fundamental nature of a company and are important determinants both of the kind of sales personnel need and their total number (the two components of personal selling strategy). Pricing policies, too, have an important impact, especially on the kind of sales staff needed- sales people have to persuade target buyers not only to accept the companys products but at the price asked. Sales-related marketing policies, like personal selling objectives, vary with the competitive setting. It is especially important that they be attained to a companys particular situation under conditions of monopolistic or oligopolistic competition, much more so than when there is no direct competition. Personal- selling strategy involves the implementation of sales policies to achieve personal selling objectives. Formulating personal-selling strategy requires analysis of competitive posture to determine the kind of salesperson needed and the size of sales force. Personal-selling strategy ultimately must be individualized for each customer and prospect, each salesperson, in the final analysis, determines how and when to do what in the contacts with each assigned customer. Although management makes the key decisions on personal-selling strategy, each salesperson determines (through the quality of job performance) the effectiveness of that strategy in achieving the companys overall personal-selling objectives.

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2.Key Objections Faced By The Sales Personnel And The Proposed Solution Key Objections 1. Price Objection It is the most common type of objection raised by prospects in which they express their inability to purchase at such a higher price. Sometimes prospects pretend that the price is higher for them with a view that salesman might decrease the price. Handling objections a. Offer substitute: Cheap substitutes. b. Justify the price: By explaining about the quality, utility and durability of the product. c. Discount offers. d. Offer installment payment. e. Price factor can be avoided: Start talking about durability, utility and services of products. f. Show proofs: Show catalogued copies of invoices cash bills etc. 2. Quality Objection It is relating to design, durability, size, colour, packing etc. Handling

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To prove superiority of the product by making a comparison of competing products. He can show laboratory reports, experts opinions etc. in suitable cases to meet such objections. 3. Payment Objection It is regarding lack of ready cash to pay the full price of product. Handling Objection Offer credit or pay in installment. 4. Service Objection It is relating to repair, delivery of goods, timely attendance of the worker etc. Handling Objection Emphasize the service facilities offered by the organization. He can illustrate the prompt service by experts servicemen, quick delivery at doorstep, prompt attendance of workers etc. 5. Time to buy objection Prospect may say he doesnt want to buy now or he is not interested in the product at present. Handling Objection Emphasize value of time and induce them to purchase now. In some specific cases he can say that in the near future price is going to rise or the new model will be too costly or the new model will enter the market after a long period and so on.

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4.

Responsibilities of the sales executive and the degree and level of

coordination he has with the Product / Brand manager Responsibilities 1. Sales Program He takes initiative in establishing short term and long-term sales goals of the division and in collaboration with other marketing executives gets sales, profits, growth and other goals. 2. Organisation Sales Manager establishes an effective plan of organization and methods of controlling the activities of members of the sales organization that will provide sufficient time for carrying out the full time of departmental responsibilities. 3. Sales force management Sales Manager identifies promising sources for recruitment of new sales personnel and sets standards for selection of the most promising new personnel from among recruits. He ensures that sales personnel are properly motivated so as to achieve optimum sales performance. 4. Internal and External relations He develops effective working relations with other department heads and the general manager so that significant sales development can be translated into appropriate course of action.

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He maintains relationship with key accounts as well as with sales and other key personnel. 5. Communications Sales manager keeps the vice-president of marketing informed on sales result and future plans of operations. He also develops a system of communication with other sales personnel that keeps them informed of overall departmental sales, objectives, results, etc. 6. Control Sales manager consult with production manager so that production rates and inventories are geared as closely as possible to actual sales need. Relation With Product Manager Executives responsible for product planning and the formulation of product policies make numerous decisions. Periodically, each product in the live needs appraising in terms of its profitability and its ability to fulfill buyers wants. When products come up for review, decisions are made on whether each should be retained, changed or improved, or dropped from the line. Other decisions are made on adding new products, on changes in product design and other product features. Still another product decisions concern product quality, services rendered in connection with product sales and packing. Product decisions are often a shared responsibility of marketing, production, research and development and financial executives provide important inputs for such decisions. Their continuous contact with the market through

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subordinates and sales personnel provide them with feedback about product performance and acceptance generally not available from other sources. 5. Recruitment Process, Selection, Training (content, faculty, duration)

and compensation strategies for the sales force. Recruitment It is the process where the prospective candidates are found and encouraged to apply. The aim is to attract potential salesmen to fill up vacancies. It is an end less job. The appointment of right person possessing all qualities of good salesmen is important and it depends on a sound recruitment policy. Good recruitment policy builds a stable working force and helps in achieving goals in a systematic and planned way. Sources of recruitment 1. 2. Internal External

Internal Sources. i) Promotion of employees: Sincere and hardworking employees in organization may be promoted to fill up the vacancies. ii) Former employees re-employment.

External recruitment: i) ii) Advertisement Employment exchanges

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iii) iv) v) vi) vii) viii)

Recommendations College and School Competing Firms Non- competing firms Self-offers Wholesalers, retailers and customers.

Selection It is the process of choosing some out of the total candidates provided by recruitment. The main aim is to find out the most suitable candidate and leave out misfit candidates. Methods of Selecting salesman 1. Requisition Salesman has to send a requisition to the personnel department stating the number of candidates required and their job specifications. 2. Recruitment Either through employment exchanges or through newspapers advertisements or through any other media. 3. Application Blanks

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It is a written formal application submitted by the person in search of a job. It required i) ii) iii) 4. Personal datasheet Job description sheet Man specification sheet.

References The candidate is required to give two or three references. The sales manager has to check the references mentioned by the candidates. This he can do by asking the persons stated or reference, to send confidential report about the candidates, sometimes telephone calls or direct face-to-face enquires can be made to references which reveal the true information about the candidates.

5.

Preliminary Interviews It is used to leave out misfit candidates. The panel of experts decides the number of candidates to be called for the interview. The candidate is interviewed by a committee to judge his suitability for the job.

6.

Psychological Test To test ability, skill, emotional attitudes, behavioral patterns and aptitudes. There are various types of tests such as intelligence test, personality test, aptitude test, capacity test etc.

7.

Physical examination

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A Salesman is required to possess a standard good health. A candidate suffering from any physical defect or deficiency is out rightly disqualified. A candidate having a poor health becomes burden for organization. 8. Final interview All information regarding qualification, experience, reference, physical test, psychological test etc. helps the selection committee to arrive at a final decision. During final interview candidates are asked some crucial questions regarding their willingness to accept the job, their responsibility whether they want to continue or not etc. Finally, if the selection committee is satisfied about the candidate, he is selected for the appointment. Training of Salesmen 1. 2. 3. 4. 5. 6. 7. To improve the performance. To influence people in a better way. Provides expert knowledge. Reduces wastage. Brings more income. Reduces control and supervision Develop high morale.

Method of Sales training

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1. Initial Training It is given to candidates on their admission to the organisation to introduce salesmen to organisation and various sales policies. 2. On the Job Training Salesmen are given opportunity of performing the role of a typical salesman. Such training is made under the supervision of senior salesman. It enables salesman to know correct method. 3. Schools and Colleges Some big organizations have training centers. Small firms may admit their trainee Salesmen into schools and the colleges, which impart coaching in salesmanship. 4. Correspondence Training It is adopted where salesmen are widely scattered and training needed by them is not very important. The training materials with necessary instructions are sent to the trainees by post regularly. It is just like postal coaching and perhaps the easiest and cheapest method of training salesmen. 5. Sales meeting and conferences They are held at regular intervals like weekly, monthly or even half yearly.

6. Sales manual

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They contain information about the organisation, its history, its policies, particulars of products, advertising etc. 7. Visual Training Visual Training programmes are imparted with the help of slides, black boards, graphs, models etc. 8. Role Playing Under this method a play is presented on stage so that the trainee salesmen is able to gain enough knowledge. After the drama is over, a general discussion can be made and newel recruited salesmen can be given necessary instructions. 9. Brain storming Five or seven trainees salesmen are grouped under the chairmen ship of an experienced salesman. The chairman gives problems to the trainees and the trainees try to find out the solutions to such problems and write the same on the notebook. Remuneration method 1. Straight Salary Method Salesmen are paid a certain amount as salary like other employees. Salary is paid on the basis of time and not on the basis of sales. There are three elements in a straight salary method of remuneration. i) ii) Salary Allowances

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iii) 2.

Increments Straight Commission Method Remuneration is paid on the basis of amount of sales made. This method is; effort oriented and is based on volumes of sales made. The salesman is paid commission on the basis of a predetermined % of net sales or profits.

3.

Salary and Commission method The sales force is entitled to a fixed salary and commission. The salary element gives the salesman the necessary security and comfort. The commission element is meant to reward hard working and efficient salesman who put such effort to increase the sales volume.

4.

Salary, Commission and bonus method The salary is paid for certain specific duties performed by the salesmen. In case the salesmen put such effort or sells and a predetermined limit, he is paid commission and / or bonus. It is meant for the results over and above certain satisfactory level of effort.

5.

Performance appraisal system and method The purpose of a performance review is not only to help the employee understand what is expected and how she or he is doing relative to these expectations, but also to increase productivity and company loyalty. Performance reviews done

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properly also reduce the chances that an employee terminated for performance problems could successfully sue the company. Seven steps can help you discuss performance with an employee: 1. Listen to your employees self-appraisal before offering an evaluation. Then give a balanced picture of an employees strengths and weaknesses from a written document that has been carefully prepared. 2. Analyze what you arte going to say. You want to be tactful and sensitive remember, your job is to motivate, not destroy. 3. Discuss differences and offer specific suggestion on how to capitalize on strong points and improve weaknesses work with the salesperson to develop realistic goals. 4. If a disagreement occurs listen closely and ask for specific facts. Dont become defensive. State your position directly and clearly. Dont allow an emotional situation to get out of control. 5. Review should never contain surprises. If you constantly reinforce and give feedback on a regular basis, no one will be surprised. The appraisal is a chance to fine tune. 6. Dont become therapist! If any personal problems surface during the discussion that need more professional help, listen with empathy, then help them find appropriate help.

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7.

Dont tie salaries or bonuses directly to the review persons performance, but also on the financial conditions of the company, the economy and what the competition is doing. If you incorporate money with a review, the employee may have expectations that you are unable to meet. Ensure your employee understands that compensation decisions include review results along with many other factors and that the review alone is not the basis for salary and bonus action.

Following up Three Suggestions 1. Written Records Once the performance appraisal discussion has been concluded a manager should immediately make a written record of: a. b. c. The overall appraisal for the previous period; Plans that both parties agreed to; Any personal commitments requiring specific action.

A copy of this summary should be given to employee. 2. Reflection Following each review is a good time to review your performance is leading the discussion. Some good questions are: a. b. What was done well? What was done poorly?

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c. d. e.

What will be done differently next time? What was learned about the employee? What was learned about self and job?

3. Follow through A third element of follow up is to insure that agreements are kept and plans followed. If this is not done, the entire appraisal loses its impact and the employee assumes no one cares very much about performance. This phase of the follow up is the initial phase of the next appraisal. 7.Basis for formation of sales budgets and sales

forecasting. Sales budget is a blueprint for making profitable sales. It details out how much of what is to be sold during the operating period and by whom, to what customers are classes of trade. Defined in simplest terms, a sales budget consists of estimates of an operating periods probable rupee and unit sales and the selling expenses invested in obtaining these sales. Sales budget is a projection of what a given sales program

should mean in terms of sales volume and net profits. Both the sales- volume and selling expenses portions of the sales budget have their roots in setting of personal selling objectives which results in the two key decisions on personal selling strategy:

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1. The kind of sales personnel 2. The size of the sales force. The sales forecast is the general source for the sales volume portion of sales budget. The sales volume objective, derived from the sales forecast, is broken down into precise details as to the quantities of products that are to be sold, the sales personnel or sales districts that are to sell them, the customers that are to buy them and the quantities that are to be sold during different time segments in the operating period. Once these breakdowns have been, them estimates are made of the selling expenses that will be incurred in implementing this sales program. The sales budget then uses the sales volume objective. Consequently, the extent of involvement of top executive in the early phases of budgeting depends upon the degree to which the executives participate in the forecasting program. Format of Sales Budget roduct/Region North East A B C 80 60 45 Mid West 90 60 35 70 50 25 80 75 30 320 245 135 West South Total

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8.

Reporting Format and frequency: Every firm has its own ways to communicate between sales representative and sales office; the choice of method is the responsibility of management. It is however very much in the interest of salesman that such communication should be really adequate and a vital part of his work is to ensure that it is maintained. Sales reports are necessary for the following four main reasons: a. To provide information regarding salesman b. To provide information on the conditions prevailing in market. c. To provide a permanent case history for each account. d. To maintain communication between salesman and sales office.

If you intend to perform any task to the best of your ability, you must approach it in the right frame of mind. The human mind tends to function at its best when following the well-trodden path of habit. The wise salesman, therefore, sets aside a specific time of day to write his reports. He allows himself perhaps an hour or an hour and a half each evening for this purpose. Many salesmen prefer to allow themselves an hour or so in which to have a meal and unwind before they settle down to write their reports.

COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL

Since sales representation may be regarded as a profession, one cannot expect to work a nine-to-five stint and then finish for the day. The salesman is, of course, entitled to his leisure and providing he organizes himself properly, he can have and enjoy it. The work he does, however, is not dull routine. To write lucidly, one must first marshal ones fact. It helps if you have a logical mind. If you have not, efforts must be made to adopt a logical approach to the information you wish to impart. The matter to be reported should be sub divided and set out under sub headings. Sentence should be as short as possible. The long unwieldy sentence demands for greater concentration on the part of the reader than a short one. Paragraphs, too, should be kept short and consist of no more than two or three sentences. Do not assume that the reader is immediately familiar with the detail of the situation. Ensure that each report contains a brief reference to the existing situation before the new information is provided. Differentiate clearly between what has been stated to you by the customer as facts and what is only your own interpretation of the facts. If a customer has given you information, which he has asked you to treat as confidential, state this in the report. The Format The first paragraph of your report should state the purpose of the visit. Many salesmen overlook than fact that their calls should have a specific purpose. Every visit should have a purpose and the report should state that purpose. The management is entitled to know the motivation, which caused you to visit the customer.

COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL

The second paragraph should deal with the main subject of your visit. Succeeding paragraphs under suitable sub headings. Should deal with any other items discussed. Opinions and comment on the part of other should generally be kept to the end and entered under a suitable title such as Remark. Finally, the actions required to be taken should be shown at the end of the report. This should state what is to be done by management or sales office personnel and also what is to be done by the representative himself. Each action item should be numbered. 9. Size of sales force It is difficult to determine the exact number of sales persons that a particular company should have. Three basic approaches in

approximating this number are: 1. Work load method The basic assumption is that all sales personnel should shoulder equal work load involved in covering the companys entire market, then divides by the workload that an individual shall handle, thus determining the total sales people required. Steps involved in this approach a. Classify customers, both present and prospective into sales-volume-potential categories. b. Decide on the length of time per sales call frequencies on each class.

COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL

c.

Calculate the total workload involved in covering the entire market.

d.

Determine the total work time available per salesperson

e.

Divide

the

total

work

time

available

per

salesperson by task. f. Calculate the total number of sales people needed. This approach is attractive to practicing sales executives. Large firms like IBM and AtandT have used this approach. 2. Sales potential method It is based on the assumption that performance of the set of activities contained in the salespersons job description represents one sales personnel unit, not necessarily of any particular salesperson. With this assumption management can estimate the number of rupees of sales volume that each salesperson should produce. Dividing this amount, into forecasted sales volume-the companys sales volume objective-and allows for sales force turnover results is an estimate of the number of salesperson needed. These relationships are summarized in equation N=S/P (1+ T) Where

COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL

N= number of sales personnel units S= forecasted sales volume P= Estimated sales productivity of one sales personnel unit. T= allowance for rate of sales force turnover. 3. 4. Incremental method Conceptually it is the best approach to determine sales force size. It is based on one main proposition; net profit will increase when additional sales personnel are added if the incremental sales revenues exceed the

incremental cost incurred. Thus, to apply this method, one needs two important items of information a. b. Incremental revenue Incremental cost Although this method is the most conceptually correct, it is also the most difficult to apply in the real world.

COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL

The Comparative Data Presentation

Most of the aspects we could find the difference and The commonalities among the organisation have been highlighted by different font

VARIABLES

TATA TELECOM

ABB

HCL

1. Relative Importance Given To Personal Selling HIGH MEDIUM-LOW VERY HIGH

Reason: They customize their Switching devices

Reason: They

Reason: dont They have an

customize much aggressive as the product marketing strategy goes as a part and want to clinch of large turnkey the cost. deal at any

based on the project. requirement & understand the customer more. 2. Selling

COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL

VARIABLES

TATA TELECOM

ABB

HCL

Objective

Selling objectives of Tata telecom are:

Selling objectives of ABB are

Selling

objectives

of HCL are

a) Emphasize overall benefit customers. of

a) Emphasize on high quality of work

a)

High

market

share

This b) Emphasize benefit

was

very

clearly understood from their top down and quotas, etc. challenging budgeting

b) To reach out obtain and new

overall

of customer.

customer.

c)

To

keep

personal selling c) service existing accounts i.e. to maintain with c) To secure To expenses within set limits. . b) To obtain sales volume in ways

that contributes to profitability.

contact present

COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL

VARIABLES

TATA TELECOM
customers, take orders

ABB

HCL

targeted percent of certain business accounts

and so forth.

d) To keep customers informed changes the on in

product

line and other aspects marketing strategy. of

3. Key Objections Faced By Sales People

Most of the Do

not

face Tough to meet the

problems are much problems targets faced providing after services. in because of the high quality

sales standards

COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL

VARIABLES

TATA TELECOM
Some of the problems are: Relating repair Delivery of goods Timely attendance of the worker to

ABB

HCL

Solution: Nothing

Solution: No steps taken as as such.

Solution: 47 authorized service center all country on average Two centers over and an

apparent such

are within the reach of 2

COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL

VARIABLES

TATA TELECOM
kames.

ABB

HCL

4. Sales Division

Sector Wise

Revenue based

Geographical Region wise

That

is

for That is amount to of profit you are the obtaining from

example target

hotel industry, the customer or railways, or hospitals etc.

Reason: The person becomes experienced in the field. 5. Tracking Competitors Track Competitors sales

Reason: Less number of customer Reason: customer is

and High

due importance interaction is given. essential.

They

also

They

maintain

consider market

competitor analysis

COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL

VARIABLES

TATA TELECOM
actively from -Orders won -Business magazines - Journals.

ABB

HCL

behavior extract information

and

report.

from customer.

6. The way they use competitors information

-Pricing strategy

To defend

To be more competitive in market. the

Competitors information is very for useful pricing

ABB

Sales

manager feels if you have to the

defend

strategy .The basic reason behind is to be L1 that is to get the

competitor then you must know him

tender passed first

criteria is to quote lowest

COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL

VARIABLES

TATA TELECOM
price (they

ABB

HCL

call it L1).

understand

To

new strategic trends.

To make strategic plans.

They

too

make use of competitors information for pricing

strategy and other strategic planning 7. Recruitment Policy They prefer - MBA They prefer -B.E. -B. Tech. -MBA They prefer B.E. B.Tech

COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL

VARIABLES

TATA TELECOM

ABB

HCL

8. Quota System

Combination Quota: -

Rupee

sales Combination Quota:

volume quota:

They

use -

They

use sales quota. their Sales quota They use this to control the sales Also net

combination quota control sales performance

rupee to volume

the As

by

opinion volume

performance they follow

of both selling communicates and selling activities. non- managements expectation By to as

profit margin quota sometimes as they emphasize more on net profit out of a transaction

how

adopting this much for what type of quota period. system monitor revenue they both A advantage Rupee key of sales

COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL

VARIABLES

TATA TELECOM

ABB

HCL

generation as volume quota is well the as that it is easily to

the no of units relatable sold out Since the other performance data selling expenses, is through computing ratios percentages. such

performance against combination quota

as

measured as %, it is also known as

or

Point System Quota. It is a combination of sales

volume goals and goals. 9. Training Need identification Usually training imparted whenever Boss is report gives of a The groups head his identify the needs on of each person activity

observation

the weakness of reporting to them

COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL

VARIABLES

TATA TELECOM
there

ABB

HCL

is individual on

i.e. pass it on to the HR his for further action.

introduction of based new technology. Company

dissatisfaction. In ABB the boss keep track of

feels that in the sales force todays competing world technology keeps and he whenever feels that is

training

needed he refer on it to the training

changing and department. whenever such change occurs training imparted employees. 10. Performance Appraisal System -70% on tenders/order s won. -20% based based Fix up a Do not fix any is to a

performance standard compare that.

performance and standard and follow

with PMS (Performance Management System)

COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL

VARIABLES

TATA TELECOM
on tenders

ABB

HCL

40

% In this system the Top management

participated -10% on based new

based on Number of new

customers.

customer . 30

identifies up some KRAs Result i.e. area are Key s. the

% These

Number of customer

areas in which the organisation has to emphasize more

complaint and these are the . 30 % area where less

effort will give you more benefit. Then as per these KRAs each individual

based on winning the tenders

employee has to fix up their own CSI i.e. Critical Success Indicator achievement .The of

these CSI will be the stick yard of the performance of the

COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL

VARIABLES

TATA TELECOM

ABB

HCL

employee.

COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL

Perception Gap between the management and Sales force While interacting with the sales personnel and the manager we could find out the differences between their opinions as well the way manager perceive the things, his approach and way of behavior is remarkably different than his sales people. We would like to state following few things regarding this 1. Performance Appraisal system: The major and most usual complaint we came across is about the performance appraisal. Though all of them have devised a matured performance appraisal system based on quantitative

techniques what sales people say that they are actually nowhere. What actually matters is How you tackle your boss 2. Tracking Competitor: Though the manager gives lot of importance to competitors information we could hardly find that seriousness at sales man side 3. Training: Another area of anomaly is training need identification. Though management is satisfied about the training imparted to sales people what they say is training is like an unpredictable weather and comes and goes. They are not really aware how relevant and useful are they except few of them.

COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL

Recommendation

1.

Redefining performance appraisal system: From result oriented platform to effort oriented platform

Though most of the successful organisation practices MBO (Management by Objective) and considered as highly result oriented but what we personally felt that this affect organizational culture as well demotivate sales people. Since sales activity are highly quantifiable and traceable sales people must not be measured on the basis of end result alone. The methodology can be thought upon and our idea is in nascent stage. 2. Training must be made a continuous process Though most of the corporate trainer screams in their speeches training must be made a continuous process again we found the same thing .We felt People either dont learn or learn it in a hard way .It is of prime responsibility of management to ensure quality training to the sales personnel.

COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL

LIMITATIONS
1) We could not get the sales report format as it was confidential 2) We could not get detail information about the size of sales force. 3) It was very difficult to get access in the company and we had to wait for a very long period of time. 4) We could not get the questioner filled in front of us so for that we had to move many times in the company which took a lot of time and effort. 5) The three companies are situated at distant places from each other i.e. in NOIDA, GURGAON and in KALKAJI, which again was a big limitation. 6) Most of the sales force was in the field so it was very difficult to track them.

COMPARATIVE STUDY OF ABB, TATATELECOM AND HCL

Annexure
1. Filled up questionnaire