Enhancing Revenue And Profit Margin For Ridley TV Plc
The current project is an assignment case that aims to discuss the efforts Ridley TV Plc can take in the upcoming future to enhance its revenue and profit margin. The brand has been facing several challenges in terms of its operation, people management and customers’ queries handling (Zahra, Iram and Naeem. 2014). The future objective of the brand would be discussed using balance scorecard and the strategic discussions would be further made to terminate customers’ existing issues.
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Financial |
Objectives |
Measures |
Targets |
Initiatives |
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To increase sales |
The ‘unbundled’ products would be publicized and marketed through sales personnel |
The target is to increase the previous level of sales by 10% within next 2 months. In order to achieve the same, the benefits of all the individual offerings should be highlighted to prospective customers through trained sales personnel and effort would be made to convert them into the actual customers. |
Sales force would be trained for both online as well as offline marketing. For online marketing, a specialized team of consultants would also be hired and consulted for social media promotion and website promotion. For offline marketing, necessary handouts, leaflets, rate charts and related printed literature would be printed and distributed through trained sales force. |
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To increase profits |
Administrative costs including sales and distribution costs would be reduced. |
The target is to reduce the administrative costs by 10% in next 6 months. For this, the business needs to identify the potential areas of inefficiency in cost structure and undertake measures accordingly. |
Since the marketing of ‘unbundled” offerings will involve expenses towards training of sales force, an effort will be required to reduce the administrative costs in relation to office overhead. For the purpose, back office team will be deputed to oversee the call centre department. |
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Customer |
Objectives |
Measures |
Targets |
Initiatives |
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To increase fresh customer base and enhance retention ration |
The rates of the services would be kept low with no fluctuations in the margin. |
The accounts department would be instructed to design a lucrative rate chart that can serve benefits to both the parties |
The team would be suggested to prepare a report and send to the management for assurance. After the clearance of approval, the team can start the work with perfect guidance to avoid loss risks. |
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To improve customers’ satisfaction rate and reduce cancellation frequency |
Customers’ queries would be handled by experts and in a professional manner to resolve it within limited tenure. |
A specialized team of customer care executives would be hired to efficiently provide after-sales support to each customer and handle their queries with care. |
The HR team would conduct a strict recruitment an selection process to hire the right candidates with efficient skills and knowledge fitting the post. |
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Internal business processes |
Objectives |
Measures |
Targets |
Initiatives |
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To innovate the existing product lines |
The Research and Development (R&D) team would be instructed to conduct through survey in terms of recognizing the apt innovation fitting the existing service |
The team would be given 1 month of tenure to conduct their survey. |
The users having access to the company’s service would be handed with a questionnaire having multiple options in relation to product innovation services. |
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To introduce new services after attaining a stability |
The Research and Development (R&D) team would once instruct to conduct research to explore service expansion scope by keeping the margin low. |
Tenure of 3 months would be provided to explore the products or service that can be introduced herein. |
The team would conduct test marketing initiatives for at least 3 months of tenure to track the responses of the customers before launching new service lines. |
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Learning and growth |
Objectives |
Measures |
Targets |
Initiatives |
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To increase employee confidence and expertise |
The HR team would be instructed to conduct weekly engagement session with employees and let them talk free in terms of the issues they are facing within the organization. Employees would feel confident after discussing the issues regarding existing operation and would be motivated as well (Larsen, 2017). |
The management would circulate an email to the HR team and the HR manager would design a mail highlighting the dates and times of engagement sessions. |
The line managers would be sent the mail from the HR department and it would his sole responsibility to circulate the mail to every team members by keeping the HR manager in the same chain of mail. |
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To deliver the right knowledge and education to every staff to understand their individual role in the organization |
Frequent training programs would be conducted for the employees to brush up and polish their product knowledge. Employees would stay fresh with the technical knowledge, which would help them to deliver before the customers and handle their queries with care (Nelissen, Forrier and Verbruggen, 2017). |
The trainer would discuss both the technical and personal modules that would help each resource to evolve over time. |
The trainer would send regular emails to the management regarding the topics or module that are to be discussed. |
The team members accountable with the customer care support are to be trained on regular basis to polish their technical knowledge (Jehanzeb and Mohanty, 2018). Customers usually raise queries related to after-sales services and the product-centric inquiries that can help them to take membership of Ridley TV Plc (Armstrong and Landers, 2018). Herein, the customer care team lacked expertise and professionalism, which led Ridley TV Plc to lose its customer base and interests oversubscriptions (Ford, 2014). Hence, provision of appropriate training would help the team to enhance their professional knowledge and understand the tone they need to keep before every customer. Thus, an improvement in etiquettes can be expected, which can enhance customer satisfaction rate.
Conclusion
Based on the discussion, it may be concluded that the Ridley TV Plc needs to re-modify its business functions and innovate its services to regain its profitable position. An efficient and structured marketing and strategic planning will contribute towards the corporate goal of attainment of sustainability in the long-run.
References:
Armstrong, M.B. and Landers, R.N., (2018). Gamification of employee training and development. International Journal of Training and Development, 22(2), pp.162-169
Ford, J.K. ed., (2014). Improving training effectiveness in work organizations. Psychology Press.
Jehanzeb, K. and Mohanty, J., (2018). Impact of employee development on job satisfaction and organizational commitment: person-organization fit as moderator. International Journal of Training and Development, 22(3), pp.171-191.
Larsen, H.H., (2017). Key issues in training and development. In Policy and practice in European human resource management (pp. 107-121). Routledge.
Nelissen, J., Forrier, A. and Verbruggen, M., (2017). Employee development and voluntary turnover: Testing the employability paradox. Human Resource Management Journal, 27(1), pp.152-168.
Zahra, S., Iram, A. and Naeem, H., (2014). Employee training and its effect on employees’ job motivation and commitment: Developing and proposing a conceptual model. IOSR Journal of Business and Management, 16(9), pp.60-68.