Develop Sales Plan

Question: Identify the purpose of Develop a sales plan,Train staff members on sales plan and Review sales plan? Answer: Develop a sales plan Product details Coles is one of the second largest super markets of Australia after Woolworths. The company is been looking introduce to manage the new collection of fashion rage for men in order to create niche products with its rival contemporaries. The Coles is looking to introduce the new line classy, upscale and versatile range of the chinos in the market in order to diversify its business and creates large market place for itself in Australian region. Objectives Establishing the large market share and fund appropriate niche market to satisfy the need of the consumers Provide value pricing of chinos in compare to its competitors like Zara and Gap Based upon the market growth expectations, generating healthy sales revenue in 1, 2 and 3 years Reinvesting the profits for the market share growth in the international apparel industry. Research market needs and market size Coles Plc is looking to launch a new range of clothing line called chinos for the men and women starting from the age of 18-45. Chinos are one of the most popular wearing and are currently in fashion in all over the world. Market size for the chinos in Australian market Clothing line market demand 2012 2013 Shirts 32% 30% Chinos 14% 24% Denim 31% 18% Trousers 22% 12% Active wears 18% 16% Suits 16% 11% T-shirts 24% 10% Graph1: Demand for the menswear since 2012 The market and market needs of the chinos are risings because of its comfort level and stylish. Due to globalizations the trend in fashion is changing frequently in all over the world frequently. Current market needs, customer profiles As per the above graph, it has been found that, most of the consumer are looking for comfort, quality , fashion within the value pricing which is why the Coles has found an opportunity in the means apparel market. The names of the chinos line will be obsessions and the tag line would be Men will be Men. Mens from the age of 18-45 can wear the chinos as per their comfort base. Coles will also be looking to expand its business of chinos line in UK and the EU market to target the new opportunities. Chinos growth rate Growth rate of menswear 2013 Denim 14% Chinos 12% T-shirts 9% Trousers 9% Shirts 8.34% Suits 7% Winter wear 5% Figure1: Growth rate of menswear Appropriate KPI Target market Segmentation bases Target customers segment of Fast food industry Geographic Region NSW, Northern territory , western Australia and Queens land Density Rural and Urban (14 million) Age Age 18-45 Gender Male, females and others Income High ,Low and middle income groups Occupation Employees and professionals , students Demographic Social status Working class, middle class and higher class Family size Single, nuclear, joint family Psychographic Lifestyle Moderns Occasions Regular and other Festive seasons Behavioural Benefits Price advantages and quality products under one roof. Occasions Parties , offices and normal wearing Target customer age per and income group Income group per month of consumers Market shares (%) $5000-$10,000 34.01% $10,000-$20,000 28.09% $20,000-$35000 31.03% $35000-$40,0000 19.1% $40,000-$50,000 11.08% Above 50,000 Age group Target Age group for Cloes Chinos Targeting (%) Below 16 6.02% 16-25 10.11% 25-32 41.1% 32-40 48.1% Above 40 23.3% All 38.8% Time line Activities Durations (days) Order confirmations 3 days Size break down 8 days Fabric booking 2 days Size set ready 35 days PPM 3 days Cutting 16 days Garment shade 12 days Production started (Knitting, trims and colouring) 4 days Production complete (Green labeling) 10 days Final inspections 7 days Outlet 3 month 12 days Price of the products Coles is looking for penetration pricing in order to sustain the current market trends. As the rise in the inflation population of Australia re very much concern about their spending with low price and high quality chances of booming of the sales is higher in compare to its competitors who are using price skimming or premium pricing. Place: The distribution channel for the chosen product sold by the Coles has higher chances of selling within its own stores because of the Coles has more 2.04 million customers. Its has wide network in all over the Australia as a part of grocery chain. Therefore it would be easier for the company to sell its chinos in the market. Budget Expected budget Particulars 2016 AUD $ 2017 AUD $ 2018 AUD $ Sales 655290 714,266 778550 COGS 65529 71427 77855 Gross profit 589761 642839 700695 Expenses Payroll 243000 250,290 273,712 Administrative expenses 14400 13000 9350 Marketing expenses 13761 15000 26523 Wastage 25000 25750 18440 Insurance cost 7500 7875 8269 Travel and vehicle cost 15000 16500 18150 Rent and utilities 17500 18375 19294 Miscellaneous expenses 4915 5357 5839 Payroll taxes 36450 37544 41057 Total operating cost 377526 389,690 378,768 EBDITA 21,2235 253149 321927 Taxes 80650 90811 100595 Depreciation expenses 5893 5893 5893 Interest expenses 13107 12197 11202 Net profit 112,586 148,165 164,129 Labor Amount AUD $ Total output per day 1250 Manpower 32 Working time 600 SAM 8.90 Target hour 173 (129 =60% efficiency) (86=40% efficiency) Labour productivity 39 Machine productivity 66 Line efficiency 58 Observation: Train staff members on sales plan Staff members for the chinos manufacturing Total number of staff requires for the line management is 26. The layout arrangement of the production is would e fully automated like Zara. The designer of the chinos will be designing the chinos are designed as per the current trend and creates fashionable apparels in order attract the men. Engineers and engineering technicians will be playing vital part to choose the textile which will be Crylon. The industrial and mechanical engineers will be using technology called CAD (computer assisted design software). Lastly, accounting supervisors and the mangers will be making the budget and conduct financial feasibility in order assess the projected sales and total budget. Identify support resources Human resources: Staff: most of the labour will be hired as per their expertise in the areas which helps the chinos manufacturing smoothly. The staff will be hired and the role and responsibilities will be given as per the qualifications. Staff Members Production Manager 3 Labour 22 632 Helper 15 856 Operator 19 1011 Training and development: Proper training and development given to each and every staff to manage their work and increase the efficiency for the higher productivity for the Coles. Product knowledge: The Coles will hiring the personnel form the reputed company who has expert to at least more than 15 years in the fashion industry in order to make the products more stylish and comfort. Finance: It is life bold of the any project. Coles has number of options for financings. Review sales plan Monitoring the success Sales plan Particulars 2015 2016 2017 Sales 36450 43740 50301 % Increase - 20% 15% Months 4 5 4 Sales/month 9113 8748 12575 Sales day 1302 1250 1796 From the above, it has been found that, Coles will selling the Chinos in 2015 with 36450 . this benchmark for the setting for the Coles . Less than this would create the problems for the company in future. Identify specific interest and objectives Plan Analysis Members Strategies Penetration pricings and product differentiation in terms of comfort and style Owners Tactics Strengthen the customer relationship with help of E-CRM. Promotion procedures via various activities Sales Managers Store layout Merchandising and innovative racking of the chinos Interior designer Social media Face fan page and twitter accounts along with YouTube innovative videos Sales manager Promotional strategies Expenditure (%) Social media (Face book, Twitter, and YouTube) 58.01% TV 32.02% Websites 28% Newspapers 21.03% Magazines 14.11% Offers, free discounts coupons 9.07% Graph 4: Promotional strategies (Source: Develop risk management strategies With help of Price 2 methodology, Coles will be able to manage the risk. Prince 2 methodologies will be helpful in managing risk within the company from manufacturing to selling. There is five step processes which will help in managing the risk. Major risk can be existed in the operational efficiency. Apart from that, wastage of the materials and thirdly while final is to maintain the output. Figure 2: Risk management techniques used by the Coles Develop contingency plan Contingency planning aims to prepare an organization sot respond well to an emergency and its potential humanitarian defaults or machine defaults. With the help of contingency plan, company will be able to overcome with existing operational risk. The guide start from the planning to reviewing of the project will give a company back plan if any contingency happens in future. Figure 3: Contingency plan process for the Chinos manufacturing by the Coles Contingency planning will give list off various process in each department under human resources plan in order to assess whether the people are enough capable of producing the expected production of chinos as per the consumer demand.