Analyzing Sales And Customer Relations

Analyzing Sales And Customer Relations

 

Executive Summary

Labtrobe valley product valley works in promoting space at trade fair and selling tickets to the visitors. LVPG also provides a number of additional value-added services to exhibitors for fees, such as organising exhibitor stands, developing marketing material for exhibitors to distribute at fairs, arranging travel and/or accommodation for exhibitors, and hospitality/catering for exhibitors to offer their customers attending the trade fair. The founder of the Company is Ms Diamantina Rose; like every other individual business owner MS Rose also wants to expand their business, generate new sources of revenue and decrease the expenses.

This report focuses at completely analysing the company, its sales and revenue. It also states some effective ways by which sales can be improved to a greater extent. Every individual company is totally dependent on the individual customer base, which needs to nourished and new strategies needs to be adopted to keep the customers engaging. This report aims at enriching the customers and talks about the strategies which needs to be adopted to improve the company’s performance.

 

1.Introduction

Labtrobe valley product valley meets expectations in promoting space at trade fair and selling tickets to the guests. LVPG additionally gives various extra esteem added administrations to exhibitors for charges, for example, arranging exhibitor stands, creating promoting material for exhibitors to circulate at fairs, arranging travel and/or settlement for exhibitors, and neighbourliness/cooking for exhibitors to offer their clients going to the trade fair. There are various sales representatives in the organisation, who are quite flexible in their working as each one of them can easily undertake any trade fair type. Trade fairs include Builders, Clothing, Computing, Food, Furniture, Government, HRM, Manufacturing, Sports, Vehicles and Wine.

The current sales strategy of the company is quite simpler and is outlined by basic organisational practices and methodologies. Here, currently none of the sales representative is specialised to work in a specific field, rather the customers are served on the basis of first come first served; which implies that any of the sales representative who is not busy with some other client will serve the customer in the queue, irrespective of his knowledge about the trade fair. This at times creates a disguise amongst the customer, as it is quite difficult for a sales representative to have knowledge of all the trades existing in the organisation. Current sales of this organisation is presented in the pivot graph below:

 

	Row Labels Count of Sales Representative				Sum of Visitor tickets sold
	Jarrah			5	634
	Food			2	180
	HRM			3	454
	Kylie			37	4267
	Books			2	191
	Clothing			6	858
	Computing			2	368
	Food			9	1109
	Furniture			1	35
	Government			1	8
	HRM			2	223
	Manufacturing			1	29
	Sports			3	259
	Wine			10	1187
	Shane			34	3092
	Books			2	102
	Clothing			9	729
	Computing			4	513
	Food			6	492
	Furniture			1	41
	Government			1	70
	HRM			2	216
	Sports			1	175
	Wine			8	754
	Sheila			24	2623
	Builders			4	324
	Computing			7	948
	Food			1	118
	Furniture			4	562
	Government			1	98
	Manufacturing			2	65
	Sports			1	101
	Vehicles			3	321
	Wine			1	86
	Grand Total			100	10616

Table 1 Total Sales

It can be clearly seen from the table above that the total sales of tickets by various sales representative in different trades is above 10k. Now, the cost of these tickets can be approximated with the help of unit cost. As stated that per ticket LGPV receives a revenue of $8, thus for total 10616 tickets sold, total revenue generated would be $84,928. However this is not the only way by which the company generated its revenue. Following table below states the other sources of revenue of the organisation.

 

Value Added Service Fee	$A
Exhibitor stand organised	1350
Exhibitor travel arrangements	220
Exhibitor accommodation	150
arrangements
Exhibitor marketing material organised	1100
Exhibitor hospitality organised	170

Table 2 Value added services pricing structure

Referring to the fairs sheet it can be observed that during the initial years, which are2004-2007 the growth of the organisation was quite constant and only some unit of sales and profit were increased, which were consequently decremented in the next year; making the profit generated constant. However with 2008, the organisation seems to have incremented the profit to a much greater extent, with the highest revenue generated last year of around $103,000. Although, still there have been some fluctuations in the profit and the sales in the concluding years.

The trade fair manager charges around $150 per sq. m. on an average. The commission received by the organisation is quite distributed as in table below:

	Commission Received	Space Sold	Rate (% of sale amount)
	New Exhibitor (large)	>= 20 sq.m.	20
	New Exhibitor (small)	< 20 sq.m.	17
	Returning Exhibitor (large)	>= 20 sq.m.	12
	Returning Exhibitor (small)	< 20 sq.m.	8

Table 3 Commission Received

Talking about the expenses, the company pays commission to the sales representatives in the following manner:

Commission Paid			Space Sold	Rate (% of sale amount)
New Exhibitor (large)			>= 20 sq.m.	10
New Exhibitor (small)			< 20 sq.m.	8
Returning Exhibitor (large)			>= 20 sq.m.	6
Returning Exhibitor (small)			< 20 sq.m.	3

Table 4 Commission Paid to Sales Representatives

Besides this, sales representative are also paid $10/hour for their services.

It can now be approximated that the expenses are quite bigger, as compared to the revenue generated. Although, it do not exceed the profit generated, but expenses can be decremented to a greater extent.

 

2.Recommendations to Improve Performance

LGPV being a small organisation suffers from basic organisation defect, which concludes the sales strategies, internal efficiency of working and most importantly making long term relationship with customers. All of these lagging parameters can be improved using the respective strategies and methodologies.

2.1 Sales Strategies:

All of the great organisations work most on their sales strategies. A sales strategy needs to be built to gain higher sum of profits. What was your last year sales strategy? How are you going to market? How are you going to kill the monster? What market opportunities or shortcomings would you say you are going to adventure? What contenders would you say you are going to take out? What new markets would you say you are going to enter? What industry changes would you say you are going to influence, and so on? Beginning with an executioner strategy is key. Having the wrong strategy or more awful yet no strategy can be pulverizing. These are some of the things which needs to be taken into account to build an effective sales strategy.

Structure is framework that holds up strategy. It's the centre to executing on strategy. Structure verifies you have the right pieces set up. Without a strong structure your strategy is dead in the water. The key is to verify your structure underpins your key endeavours. Does your strategy require inside or outside sales? Does it oblige seekers or ranchers? Does it oblige substance and new web support? Does it oblige elective remuneration arranges? Does it require new domains? What does your strategy require to be effective? Your structure needs to answer those inquiries and verify the answer conveys for the strategy. Structure incorporates sales operations and sales enablement also. It's all the things that empower your strategy to take flight.

The structure of the LGPV needs to be taken to account as it seems to be poorly build. The sales representatives are paid twice, firstly on the basis of services provided per hour and secondly on the basis of commission per exhibitor. Here the sales representatives can be permanently hired on a monthly basis, which would eventually end in making the profit more and the expenses less. To ensure that the representatives works with same enthusiasm, proper objectives and goals needs to be given them.

2.2 Increasing Internal Efficiency:

Efficiency turns into the discriminating viewpoint for achievement in the impending year and past. With rivalry wild and value a noteworthy thought for all, just those organizations that minimize overhead and expand yield will be champs. Just agile firms that adjust rapidly have the capacity to stay in front of patterns while keeping up worth and hobby. The capacity to keep your business cantered while searching for new items and administrations is the thing that advancement is about. Doing as such effectively is similar to attempting to cook an exceptional, heavenly dinner without any preparation without squandering fixings or time setting it up.

Execution asks for consistency, and consistency can make a staleness brought on by reiteration and weariness. In the event that your business continues doing what is generally done, your deliverables will get to be stale and simple rivalry. Consequently, the need to improve and test.

 

In that lays the Catch-22: The more you change the less reliable and trustworthy you get to be, and the harder it is to perform; to be effective and maintain a strategic distance fromslip-ups.

The internal efficiency of LGPV can be increased by organising training workshops for its employees, specifically sales representatives. These workshops would make them learn new tactics and methodologies to gain more customers and thereby increase the sales and revenue.

2.3 Making Long Term Relationships:

At last, the best customers are regularly the individuals who continue returning to you for additional. The subject of long haul business connections is a tremendous one that gets huge numbers of the centre subjects of Customer Relationship Management (CRM). Instead of endeavouring to climb that mountain.

Your association with the customer will keep up, and ideally expand, its esteem on the off chance that you can demonstrate a proceeded with unbiased attitude and a target perspective toward the changing needs of the association. This may not generally be simple, on the other hand. More than a time of time, you will unavoidably create individual associations with the association's staff individuals. It's just regular that a few ties ought to develop between you or your staff and the association when you cooperate for a time of time, yet with cautious administration these connections can be an important vehicle in reinforcing your association with the customer.

To make long term relationship with the customers, core concept is making the process interactive. For this variety of strategies can be adopted, including special conventions for the returning customers such as making extra discount of gifting extra services for free. Overseen accurately and overhauled immaculately, it’s the rehash customer who can truly help you develop your counselling business. As opposed to softening up new connections or attempting to get past the presentation stage with new prospects, you are confronted with the test of keeping up a level of administration to the rehash customer that goes past the specialized or critical thinking abilities that your different customers anticipate from you.

 

Conclusion

LGPV currently promotes and sells two different sized stand spaces, to new or returning exhibitors, for a number of Trade Fairs locally and overseas. On having a closer look into the data sheets of the company, it was observed that the organisation had many deformities in sales strategies, internal efficiencies and customer satisfaction. The report concludes the best practices which needs to be adopted to improve the organisation performance. It was observed that the organisation had quite less share in the revenue generated, which serves as profit; a majority of the revenue was distributed among the sales representatives in the form of commissions and hourly paid services.

A solution to this problem was incurred by permanently hiring the employees, moreover to ensure the good working conditions and working efficiencies strategies were suggested, which can be found in the report.

 

References

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