vietnam national university, HANOI hanoi school of business Luu Thi Diep Anh A STUDY ON SALES FORCE MANAGEMENT THE CASE OF TOYOTA GIAI PHONG FROM 2002 TO 2006 Master of business administration thesis Hanoi - 2007 TIEU LUAN MOI download : skknchat@gmail.com vietnam national university, HANOI hanoi school of business Luu Thi Diep Anh A STUDY ON SALES FORCE MANAGEMENT THE CASE OF TOYOTA GIAI PHONG FROM 2002 TO 2006 Major: Business Administration Code: 60 34 05 Master of business administration thesis Supervisors: 1. Vu Huy Thong 2. nguyen viet anh Hanoi – 2007 TIEU LUAN MOI download : skknchat@gmail.com TABLE OF CONTENT ACKNOWLEDGEMENTS. i TABLE OF CONTENT.
ii LIST OF FIGURES. v LIST OF TABLES. vi LIST OF CHATS. 1 CHAPTER 1: SALES FORCE MANAGEMENT.
DEFINITION AND THE ROLE OF SALES FORCE MANAGEMENT. FORMULATION OF A STRATEGIC PROGRAM. Sets goals and objectives. Determines sales force size and structure.
IMPLEMENTATION OF THE SALES PROGRAM. Sales force recruitment and selection. 18 ii TIEU LUAN MOI download : skknchat@gmail. Designing compensation and incentive programs.
MEASURING SALES FORCE. Measuring Sales Force Productivity Drivers. Measuring People and Culture. Measuring Customer Results.
Measuring Company Results. 27 CHAPTER 2: ANALYSIS OF SALES FORCE MANAGEMENT AT TOYOTA GIAI PHONG. INTRODUCTION OF TOYOTA GIAI PHONG. TGP history and development.
Toyota Giai Phong’s organization structure. Toyota Giai Phong’s financial competency and facilities. TGP’s business performance from 2002 to 2006. THE SALES FORCE MANAGEMENT AT TGP.
TGP’s sales model. Implementation of sales force management at TGP. MEASURING SALES FORCE PRODUCTIVTIES. 46 iii TIEU LUAN MOI download : skknchat@gmail.
52 CHAPTER 3: SOLUTIONS FOR IMPROVEMENT OF SALES FORCE MANAGEMENT AT TOYOTA GIAI PHONG. THE VIETNAM AUTOMOTIVE TREND .1 The Vietnam’s automotive market trend .2 The Vietnam automotive consumer’s trend. RECOMMENDED A NEW MODEL FOR TGP. Sales force structure.
IMPROVING QUALITY OF RECRUITMENT AND TRAINING. DEVELOPING CUSTOMER SATISFACTION PROGRAM .1 The core of CRM: .2 Benefits of CRM. 64 iv TIEU LUAN MOI download : skknchat@gmail.com LIST OF FIGURES Figure 1.1 Functional Sales Organization…………………………….2 Geographical Sales Organization……………………….3 Sales Organization with Product-Specialized Sales Force…… 10 Figure 1.4 Sales Organization Specialized by Type of Customers….1 Organization Structure of Toyota Giai Phong…………….2 Sales force structure at Toyota Giai Phong ………………….1 TGP’s sales organization specialize by type of customers ….57 v TIEU LUAN MOI download : skknchat@gmail.com LIST OF TABLES Table 2.1 Human Resource of TGP…………….2 TGP’s performance for 5 years……………………….3 TGP’s commission table……………………………….4 TGP’s Sales record in 2006……………………………………42 Table 2.5 Average sales volumes per salesperson………………………44 Table 2.6 TGP Customer satisfaction results from 2002 to 2006…….7 TGP’s types of customers………….8 TGP’s sources of customers………………….9 TGP’s revenues vs. profit from 2002 to 2006…………….52 vi TIEU LUAN MOI download : skknchat@gmail.com LIST OF CHATS Chat 2.1 TGP’s business performance from 2002 to 2005……….2 TGP’s sales volumes in 2006…………………………….
3 Sales volumes per salesperson…………………………………45 Chat 2.4 TGP’s Customers Satisfaction results from 2002 to 2006……46 Chat 2.5 TGP’s type of customers………………………………………48 Chat 2.6 TGP’s source of customers ……………………………………51 Chat 2.7 TGP’s revenues vs profit from 2002 to 2006……………….8 TGP’s market share……………………………….54 vii TIEU LUAN MOI download : skknchat@gmail. THE PROBLEMS: Sales force is a powerful asset of selling organizations. It is a crucial factor contributes to the success and stable development of the firm. A good sales force management can help the company to increase productivities as well as its competitive advantages.
In Vietnam auto market, the tough competition between well-known brand such as Toyota (Japan), Ford (America), Mitsubishi (Japan), Mazda (Japan), Isuzu (Japan), Suzuki (Japan), Daihatsu (Japan), Honda (Japan), Mercedes (Germany), BMW (Germany), Kia (Korea), GM-Daewoo (Korea), besides, there are local manufacturers: Truong Hai, Xuan Kien auto and Chinese low-cost imported cars make the auto dealers face many difficulties. Toyota Giai Phong, 1 of 5 dealers in the North and 1 of 15 dealers of Toyota in Viet Nam, has three main functions: Toyota car sales – introduction, warranty, maintenance, repair service supply and genuine part supply. It is tougher for Toyota Giai Phong because it compete not only with other brands dealers, but also with 14 other Toyota dealers in Viet Nam. After 8 years operation, Toyota Giai Phong has significant achievements but it usually in the 3rd rank of Toyota Vietnam’s dealers.
Customer satisfaction is not as high as expected, sometime it is lower than average scores. The thesis “A study on sales force management – the case of Toyota Giai Phong from 2002 to 2006” is aimed to study and propose solutions to improve sales force management at Toyota Giai phong and can be applied for other dealers of Toyota Vietnam. 1 TIEU LUAN MOI download : skknchat@gmail. OBJECTIVES AND AIMS: Literature review about the sales force management like: designing sales force strategy and structure, recruiting and selecting, training, evaluating, compensating, and measuring sales force productivity.
Base on Toyota Giai Phong’s sales force performance analysis, the thesis propose solutions for improvement of sales force management at Toyota Giai Phong. RESEARCH QUESTION: The thesis uses some questions as follows to make clear the situation of Toyota Giai Phong and propose solution: - What Toyota Giai Phong has been done so far? - What Toyota Giai Phong can do to develop sales force management? - What conditions need to make Toyota Giai Phong improve Sales force management? 4. SCOPE OF WORK: The thesis studies on sales force management process as well as factors influence and measurements sales force productivity at Toyota Giai Phong from 2002 to 2006. DATA SOURCES: The thesis bases on textbook of sales force management; human resource management, and some websites related to this topic also use to collect 2 TIEU LUAN MOI download : skknchat@gmail.com information for theory part.
To analyze sales force performance at Toyota Giai Phong, this thesis uses documents of Toyota Giai Phong and Toyota Viet Nam. METHODS: This thesis applies analysis, synthetic, statistic, survey & questionnaire method in a case study. SIGNIFICANCE: The thesis study and analyze sales force management at Toyota Giai Phong to propose solutions to develop sales force management at Toyota Giai Phong. Propose solutions to build a perfect sales team for Toyota Giai Phong, it can be applied for other Toyota dealers in Vietnam.
LIMITATION: The thesis only study at sales department of Toyota Giai Phong. The data and information are collected from Toyota Giai Phong and Toyota Vietnam. EXPECTED RESULTS: Study on sales force management theory and analyze the case of Toyota Giai Phong to propose solutions in order to improve sales force management at Toyota Giai Phong and make it become the leading dealer of Toyota Vietnam. 3 TIEU LUAN MOI download : skknchat@gmail.
OUTLINE: Excluding introduction, conclusion and reference part, there are 3 parts in this thesis: Chapter 1: Theory on sales forces management. Chapter 2: Analysis of sales forces management at Toyota Giai Phong. Chapter 3: Solutions to improve sales force management at Toyota Giai Phong. 4 TIEU LUAN MOI download : skknchat@gmail.com CHAPTER 1: SALES FORCE MANAGEMENT 1.
DEFINITION AND THE ROLE OF SALES FORCE MANAGEMENT “A sales force is a group of salespeople or sales representatives responsible for the sales of either a single product or the entire range of an organization's products” (http://www. A sales force normally reports to a sales manager. A strong and efficient sales force is a vital asset to an organization. It helps in the smooth realization of sales targets and ensures perennial sales productivity.
Sales force management managing the sales force itself involves a number of key areas including, performance measurement, selection and training of salespeople, and motivational methods. Sales-force management involves three different tasks. Firstly, it is the methods for selling and managing a sales territory. There are no prescriptive methods for doing this and, if anything, an adaptive approach to selling is probably best.
Secondly, it is the supervision by management which should include valid performance measurement and suitable motivational methods. The third task in concerned with the setting up of a sales force in terms of its organization. Key changes in the future are likely to be concerned with technological advancements and information handling. The organization and structure of the sales force depends on several factors.
Different business scenarios require different types of sales force organization. It may be possible to increase sales productivity by attempting new methods of sales allocation. The new models of sales allocation are: Segment-based sales force, Functional sales force, Consultative sales force, Enterprise sales force, Transactional sales force. Hybrid/Queuing sales force.
5 TIEU LUAN MOI download : skknchat@gmail.com The activity of sales in an organization is carried out by the sales force. A highly motivated sales force is instrumental in increasing the sales productivity of the organization. This increases the significance of sales force management. With sales force management, a sales team will produce better ROI analyses for its customers, and improved sales proposals that are customer-focused.
FORMULATION OF A STRATEGIC PROGRAM 1. Sets goals and objectives To establish sales force goals and objectives, a company must determine the current status of the selling organization. Goal setting methods are rooted in approaches for identifying market potential and other key drivers that impact performance. Goals are based upon three key factors: marketing’s view of customer potential, the sales organization’s view of what is possible, and management’s insights and expectations.
SFM create a top-down, bottom-up analytical approach and develop goals that link to the company’s expectations as well as gain the buy-in of all key stakeholders. A typical goal setting will consist of an in-depth analysis of customer base, followed by a rigorous analytical development of potential estimation. Important of sales forecast In sales management, sales forecast is very important because inaccurate demand estimation can be costly. The firms not only need to identify market opportunities but they also need to produce accurate estimates of demand for products the result from this activity.
6 TIEU LUAN MOI download : skknchat@gmail.com Market opportunity analysis involves: Estimation of market potential or the expected sales of a commodity by the entire industry serving the market during a stated period. Estimation of sales potential or the share likely to be realized by the company. Preparation of the sales forecast or the estimate of sales for a specified future period under an assumed marketing plan. Methods for sales forecasting Users’ expectations: this method is also known as the buyers’ intentions method because it relies on the answers of customers about their expected consumption or purchases of the products.
Sales force composite: this method requires every salespeople to estimates their expected sales. These estimations are discussed, revised, and then pooled to other levels of the sales organization hierarchy. Jury of executive opinion: this method is also called expert opinion method. It pools the top executives of the company to assess the sales possibilities for next period.
The forecast may be done by average the individual judgment or by group discussion. Besides, Delphi technique is also used, in this procedures each one in the group submits a forecast to the group coordinator. The estimation summary is prepared by coordinators and distributed to the ones who submit forecasts. Then their estimates are revised 7 TIEU LUAN MOI download : skknchat@gmail.com by them if necessary.
The process continues until a reasonable consensus is reached. The market test: it is a controlled experiment where product is placed in several representatives cities to see how it perform and then the result are projected to the area in which the firm operates. Time series analysis: the analysis of historical data is used to develop sales forecast. Statistical demand analysis: relationship between sales and the important factors affecting sales is determined to forecast the future.
Depend on the business field of the firm, Sales manager will choose the most suitable one to apply. Determines sales force size and structure 1.