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Submitted by ( Group 4) :
Navaneeth MJ- 111227 Rajesh Kumar singh Raj Gaurav Gaurav Singh Siddarth Soumyadeep das Manish Deo Shashak Burde
HP : Business Sectors
HP-CSO : An overview
Division that Manufactured computers peripherals as well as application software
Focus on superior Technology ensured that HP positioned itself price/performance market leader in 1980s and 90s.
A well trained sales force covered major accounts and small Business alike .
Individual Customers
Retail customers with smaller budgets Indirect through channel partners only
Top 5 % of customers contributed more than 40% of business But took more than 65% of productive time of CSOs sales force. Management focus : 1) Aim to manage top 40-50 customers relations properly . 2) Minimize customer management costs 3) Prevent enterprise customers from switching vendors for lower prices
GREEN
Channel partners that sold to small customers
BLUE
Telesales
Sales cost per order also called field selling costs were as high as 30 cents to every dollar earned in 1990 s needed to be brought down to 10% Leap Consulting Inc , a sales performance research and consulting firm hired to conduct a sales process audit
Types of Projects
80% (Mostly Infrastructure) 20% (Mostly Opportunistic)
Repurchase
Right Features Right Price Right Delivery Good customer relationship
Innovation
Customers with no defined need Sponsored by a business unit manager A different Sales approach
Replacement
Customers willing to substitute HP for other vendors
Expansion
Customers who are ready to involve HP for their new requirements
Innovation projects:
Significant time-investment, high risk of failure and low conversion rate Less time spent in early stages of cycle No proper prioritization of sales opportunities
from Product Focus to Customer Orientation. Improved Customer satisfaction Improved brand image for Hardware Quality Lacked commitment towards creating opportunities Serving existing customers led to huge timedrains developing quotes, managing prices etc. Over-commitment & under-delivery has led to failure of many Expansion projects Increased customer expectations( those who received special attention)
Repurchase opportunities
Continuously improve Operational efficiency High Price-Discount pressure
Replacement Opportunities
on Select opportunities properly Prioritize opportunities based potential
Upstream
Expansion Opportunities
Innovation Opportunities
Ability to sell concepts Instill confidence of Delivery
Recommendations to Diaz
Just a brief Recap of the current sales approach first Sales force worked essentially for the company as a whole; sales' responsibilities, budget, and activities were at the service of pushing the entire portfolio of HP products Theoretical it gave sales force ability to crossand up-sell, In actuality, the company's huge product lineup was beyond the ken of any single mortal. Separate product divisions had little or no control over the process or sales budget. There was no one to blame when things went wrong.
Recommendations
Realign its computer sales and marketing activities around three customer segments -- Retail consumers,
Commercial resellers and Enterprise accounts
Commercial Channel Sales Force -Value-added and high-volume reseller channels that will serve small, medium- and large-business
Enterprise Sales Force to focused on HP's largest end-user customers
The Enterprise Sales Force also will create "pull" for PC desktops, servers and associated networking products, relying on Channel Partners and HP's professional services and support organizations to provide integrated solutions to enterprise customers.
Recommendation
The New Reporting Structure
The sales forces will report to their primary business groups as well as to a new, single Computer Sales and Marketing Organization to assuage worries of Decentralization . The new sales alignment will continually emphasize close relationships with its customers. HP will use its new sales-organization alignment to increase its intimacy with customers, expand its knowledge and to leverage all available HP sales and support resources with channel expertise.
Positive competition between divisions Better control as each division can act as separate profit centre
Duplication of functions (e.g. different sales force for each division) Negative effects of competition Lack of central control over each separate division
Learnings
In an B2B market scenario, the Supplier needs to constantly re-align its Sales Process to meet the dynamically changing customer demands and requirements. The above re-alignment of Sales Process should take into consideration the Sales people in terms
Proper Training to upgrade skills Knowledge transfer across Sales reps Performance-based incentives and compensation plans
Thank You