Sales Plan For Powerage Energy Drink In The KT Postcode Area

Identification of the Market opportunity

1).Identification of the Market opportunity

The primary stage of the planning process is the identification of the product and market environment.  This step includes assessment of the consumer demand and availability of the product in the market (Brinckmann and Kim 2015). Analysis is to be made whether the product will be accepted by the market or not. The new product to be launched is a energy drink named “Powerage” and the market identified is he various local malls, shops and office canteens. The demand for the non-alcoholic beverages is growing day by day especially within the young generations who frequently visit the malls. The key market players are Coca Cola, Fizz, minute –maid an red bull providing a similar product in the Kingston region (Watson, McGowan and Cunningham 2018).

2).Sales Objectives for 12 months

Goal Type	Objectives Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper	Time scale
Target Revenue	The target revenue is £1M.	The target is to be achieved by the end of December 2018.
Sales Volume	The target sale volume   is approximately 1000000 bottles.	The goal to be accomplished by the end of the year as well.
Market Share (%)	In terms of market share for energy drink in the KT postcode, the Powerage aims in achieving 20% market share in the soft drink market. This will be calculated by primary data collected market researches (Singhai 2016).	The target is to be achieved by the end of December 2018

3).Sales Environment

The business-to-business sales environment refers to the exchange of products between two markets that is there is no final consumer. It refers to the interaction between a manufacturer and a retailer. Powerage will deal with the independent retailers, shopping malls, restaurants, house associations and move halls in the KT Post Code Area (Marwah 2017). The area that would be covered will be small and medium sized trade shops. Decision-making will be held within the area. The target organisations in the Kingston area of the product to be distributed are given in the following tables:

The list of the primarily retail stores, shopping malls, restaurants in the Kingston area (KT1 to KT25) to maximise the sales:

KT2	KT9	KT10	KT15	KT16	KT20	KT4	KT21	KT19
Kingston upon Thames	Chessington	Esher	Addleston	Chertsey	Tadworth	Eden walk shopping centre	The heart shopping centre	The empire cinemas

4).Target segments and Prioritisation

Target segment	Organisation Buying	Target Need
Retail stores	The retail stores generally buy in bulks, as they need availability.	The consumer demand-soft drink for refreshment
Shopping malls	The showrooms and shopping malls buy in medium to high quantity. The period of buying is longer.	Local customers who visits the showrooms for shopping.
Movie halls	The supply is to be made according to the demand. Excess may not be needed.	The target customers are the people who visit the movie theatre and consume soft drinks for refreshment.

5).Target customers in each segment:

Retail Stores	Post Code	Shopping Malls	Post code	Movie Halls and Restaurants
Kingston upon Thames	KT 2	Eden walk shopping centre.	KT 4	The empire cinemas	KT 19
Chessington	KT 9	The Heart shopping centre	KT21
Esher	KT 10
Addleston	KT 15
Chertsey	KT 16
Tadworth	KT 20

6).Decision making process of target customer:

The decision making process of the target customers depends upon the potential buyers and the location where the product is going to be sold (Ferrell and Fraedrich 2015). The decision-making is a very vital process as the profitability of the product relies on it. In this stage, the problems, specification, quality and various other decisions are taken. Here, a relationship is build between the business and the target customers.

The decision making process is shown in the following table:

Identification of the consumer demand	The need and purpose of the product is recognised in this stage. A market survey in the KT area retailers and consumers would help in gathering data.
Collection of information	The sales representatives of the firm would collect information about the consumer demand and also gather feedback of the sample peerage drinks,  to find out whether it is up to the mark or not.
Identification of alternatives	There should an identification of the alternative buyers other than the retail stress, malls and movie halls as well so that the sale is maximised.
Weigh in evidence	After gathering the information and analysing the same. The decision is to be taken from the conclusion of the analysis so that it can be implemented properly.
Implementation of the action	The process follows with negotiations and closing of deals with the targeted retailers and the proposal or the supply of the product is sent (Goodwin and Wright 2014). If the proposal is accepted and the deal is agreed upon, the buyer may purchase the product in bulk and close the deal.
Evaluation and review	Based on the feedbacks and reviews, evaluation is made on the performance and consumer satisfaction. If positive feedback is received, the decision of increasing the stock and supply is taken.

6).DMU for each targeted customer

The Decision making unit consist of the individuals who take part in the decision making process. The DMU officers are a buyer, influencer and the decider of the product. They are the users of the product who hold the power of taking derisions of the product (Shapiro and Stefkovich 2016). The decision-making unit of Powerage in the KT area is shown in the following table:

Sales Objectives for 12 months

Company	Name	Role	DMU
Golden joy centre	N/A	Director	Buyer, Decider, Influencer.
Kings men retail store	Tara Simich	Director/Shareholder	Buyer, Decider, Influencer
YPFR Pvt. Ltd.	Joey Buffay	Director/secretary	Buyer, Influencer
Nuffield health care	N/A	Director/ shareholder	Buyer, Decider, Influencer
Cold rush drinks	Spenser Pickering	Shareholder	, Influencer
The sportsman store	Marks Lukersbeg	Director	Buyer, , Influencer
Childhood joy ltd.	N/A	Director	Buyer, Decider,

7).Geographical concentration

The Geographical spread of the sale of Powerage product consist of the independent retail stores, restaurants, shopping malls and movie halls of the KT post area are chosen as the spread. The approximate area covered is 177 square miles (Frank, Mashevskaya and Ermolina, 2016). Two clusters from KT1 to KT2 and KT6 to KT8. According to the positioning of the retail stores, and restaurants the geographical concentration is determined. The products must be delivered in such a way that the time spent in unnecessary travelling minimized. Each of the postcodes the product must be available.

8).Number of sale cycles with justification

The selling cycle denotes the stages ad processes of making the sale from initial point of contact with the customers, placing the order, until the proceeding of the sales. In rte case of Powerage energy drink, there would be two main sale cycles that is summer and winter. Summer is when there would be more demand for cold drinks and energy providing beverages and the winter cycle is when the rate of sales would be low, as one prefers hot drinks during that period (Albert  2017).

The main cycles included will be generated by:

1. Prospecting & qualifying
2. Plan to initiate sales
3. Approaching the prospect
4. Sales presentation and demonstration
5. Negotiating resistance and any objections (resolving them)
6. Confirming closing the sale
7. Following up (contacting by email or phone)

9).Sales visit per customer per company

The number of visits per customer per company depends upon specific needs of the consumers and the DMPs. It requires much planning in the first three months. As Powerage is a new product, the frequency of the sales visit should be more. The sales visit provides with various information of the sales of the products in the market along with the feedback. For this product, the sales visit would be once every three months to the retail stores, movie halls and shopping malls. The sales visit help in building a strong relationship with the buyer.

10).Time interval between each visit with justification

In order to get complete and accurate knowledge about the sale of the product the time interval set is three months. The time interval will help in ensuring in generating profit and cost effective processes. The individual customers can give the best information after consuming the product.

11).Sale Call Objectives

Retail Shop, Movie Halls, Shopping malls	Sales objectives	Visit Objectives
Kingston upon Thames	Sales maximisation	Gain interest and convert to can action
Chessington	Generate customer loyalty	Remove complexity
Esher	Improve team selling	Consumer satisfaction
Addleston	Profit maximization	Demand and supply analysis
Tadworth	Increase penetration into accounts	Gain interest and convert to can action
Eden walk shopping centre	Generate customer loyalty	Demand and supply analysis
The heart shopping centre	Generate customer loyalty	Remove complexity.

12).Sales Representatives needed to cover geography/visits/timescale

The sales representative identifies the buyers and takes a survey in the market to understand better about the sales of the product. The following table shows the number visits to be covered in the KT areas buyers along with the Timescale.

Sales Environment

Retailers	Shopping malls	Movie Halls
Visits	Timescale	Visits	Timescale	Visits	Timescale
1	20.9.2017	1	20.9.2017	1	20.9.2017
2	18.12.2017	2	18.12.2017	2	18.12.2017
3	2.2.2018	3	2.2.2018	3	2.2.2018
4	11.3.2018	4	11.3.2018
5	3.4.2018

13).Additional training for the representatives along with justification

The sales representatives need additional training that makes them more efficient, so that they can effectively obtain more information of the product and enhance the profit (Coibion, Gorodnichenko and Hong 2015). They must be fully educated regarding the promotion process and communicate effectively with the buyers. Hence, additional training is mandatory for them.

14).Recruitment procedure of the representatives and justification of the process

In case of the recruitment and selection process, the knowledge about the job vacancy is to be conveyed through internet, newspaper or any other sources (Board 2017). The job description and the specialization of the job are informed through this process only. The interested candidates who are seeking for the job, connects with the company and after interview and the selection procedures, they are recruited.

15).Cost of sales representatives

The various costs, which are attached with the sales representative, are:

 

Sales support	justification	cost
Salary	For engaging in the promotion process	£50,000 monthly to each sales representative.
Car	For moving from place to place, a car is required including petrol and various other costs. The car would allow reaching the destination easily.	Cost of petrol, maintenance, tax and parking
Company phone	Phone is a very important resource, it helps in communicating with the individual customers for their complaints ang grievances and with the company in case of any confusion	Recharge and maintenance of the phone.

16).Local communication & Local Promotion 

Powerage uses various tools for its promotion. The tools include local TV advertisements, pamphlets, newspapers, hoardings and many more. The promotion through word of mouth is also an important technique.

17).Promotional tools to support sale calls 

The promotional tools, which would help the sales representatives when they are conducting a face-to-face sales call, consist of laptops, leaflets and brochures (Mendez et al. 2015). The laptop allows to visually representing the features of the product, the leaflet would presents handy copy of the product information and the brochures includes pages in A5 format regarding the features of the drink.

18).Approximate Budget required to fund each channel of communication & promotion

Promotional tool	Cost
laptop	£50,0
leaflet	£250
brochures	£940
prints	£360(local printer)

19).Selling Price and anticipated profit margin

The bottles are sold to the buyers in boxes. There are variety of boxes consisting of 100, 150, 200 bottles each. The boxes are to be sent to the various stores, malls ad movie halls according to the requirement. Different boxes have different flavors. The following table represents the sale plan for the following 12 months:

Boxes	Manufacturing selling price	Retail price	Gross margin in(£)	Gross margin (%)
Box of  100	£110 (per shipment)	£200 (Sold at £2)	£90 (per shipment)	45%
Box of 150	£165 (per shipment)	£300 (Sold at £2)	£135 (per shipment)	45%
Box of  250	£275 (per shipment)	£500 (Sold at £2)	£225 (per shipment)	45%

 Introduction:

The sales plan deals with the strategy that sets a target for the business and the various steps to meet the same. It activates and motivates the various procedures to reach the sale goal. A sale planning is an essential element of sales success (McKenzie 2017).  It refers to the process that sets a plan of action and cautiously identifies the steps to maximize the sales and profit. A sale plan is prepared before each financial period and is it made sure that actions are according to the plan.  In general, terms, Planning is a forecast of future environment and sensible decision making to implement the strategies into operational activities (Finch 2016). The sales plan initially starts from setting out the future strategies then indentifying the market and customers along with the implementation of the strategies. In the following discussion, a Sales Plan is being structured of a launch of a non-alcoholic beverage product named “Powerage”, in the local shops and shopping malls in United Kingdom.

References:

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