Sales

8/23/2010

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Submitted By,
Sanket Aradhye (17)
Khaleel Ulla Khan (54)
Nikhilesh Kumar V. (70)
Saranga Sharma (89)
Ujjwal Deep Rai (110)
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Y-India | SDM Term Project |

Company and Industry Background:
Company: Y-INDIA
Y-India provides for many features, one of which is the Online test and which remains the main Product.
Product Description:
The product that Y-India deals in is an Online Test feature along with advertisement and promotions of the educational partner.

The product is intangible and can be taken to be an example of cloud computing. It is an online feature where an educational institution purchases a username and a password. Using the same they can create an online test for any particular class or subject. Then they provide their students with the same. Students then log in to Young India website and give the test. It is important to explain that there are two parts of online test feature, one is the creation part- it is a link which is used by the Subject teacher or Administration people to create the test unavailable to the students- in other words this is the “Design End”. The next part is the user end which is there on the Y-India webpage. Students log in to enter the Institute specific username and password and then give the test. Thus, we see that even though Y-India sells this Product to the educational institutions but the end users of our product were the students.
Packaging:
It is very important that a good product have a good packaging. In case of Y-India, the packaging is unique and one of a kind with every Educational Institute on purchase of the product given an online exposure. For every activity or event that a particular institute hosts, the same is made visible on the website, thereby providing visibility to both the event as well as the institute on a national and maybe international level. Further, for any events, it gives a democratic outlook with students as well as the users of the webpage being able to vote online.

Industry Background:
There is an increasingly changing trend in education system and the way in which examinations are conducted and format of examination as well. With the likes of premier entrance examination giving more preference given to MCQ (Multiple choices Questionnaire) and CAT going online, the online test industry has fostered manifold with Coaching Centers taking the lead.
Industry boasts of many players, at both domestic and national level. With the emergence of CAT and other MBA related entrances as premier test in the nation, the likes of IMS, Erudite, Times and many other coaching centers along with websites that provide Online test feature to students have become an integral part of an MBA aspirant as well as other kind of tests. These coaching centers used to provide students with on-class coaching or materials for self study. Another important aspect of these coaching centers was organizing mock- CATs, XATs, SNAPs etc. Basically they used to conduct this test the traditional way, using OMR sheets, but a significant change in the way in which CAT is conducted has brought about a major change in a way these tests are conducted. Coaching centers which are affluent enough have resorted to infrastructure and technology up gradation to provide students with e-test experience, while other coaching centers which cannot afford to build their own e-test features have resorted to cloud computing techniques like the one which Y-India is offering.
With over 3 lakh students appearing for CAT (only) in the year 2009, the online test providing industry seems to grow with time.

Major Coaching centers offering e-test:
Coaching Centers | Online test offered for | Who has to pay? | How much? |
IMS Learning | MBA related, Law, BBA, Hotel Management | Individual Student | e-test series: Rs 4500/-, full course: Rs 29000/- |
Erudite | MBA related | Individual Student | e-test series: Rs5000/-, full course Rs 22000/- |
T.I.M.E | MBA related | Individual Student | Full course Rs 18000/- |
Career Launcher | MBA related and others | Individual Student | Full course Rs 20000/- |

Description of the Sales Manager's Position:
Qualification: PG - Any PG Course - Any Specialization
No previous job experience.
8 employees report directly to him.
Working with their representatives: office paperwork is 60: 40.
Sales Planning and Forecasting:
Sales forecast is done once every month, for the next six months.
Not too well used/implemented.
Statistical tools are used (information not shared).

Organization of the sales function:
PRINCIPAL DUTIES:
The following are principal duties of the Direct Sales Manager:
Leadership and Management
• Represent Y-India in a positive and professional manner in and outside of Y-India
• Work with all personnel and outside contacts to satisfy clients and achieve company goals
• Identify areas of improvement in the company and assist in creating and implementing solutions
• Keep up to date on market trends and new products
• Identify and investigate growth opportunities for the company with our customers
• Provide constructive feedback to department employees
• Instruct, train, mentor and manage direct reports and other inside sales resources as assigned
• Sell Y-India services and reach revenue quotas for existing customers, to key direct targets
• Provide guidance to the Direct sales team and improve overall direct sales department performance
RESPONSIBILITIES:
The Direct Sales Manager is responsible for ensuring that:
• Develop attach plans for key Direct prospects and close Direct customer business
• Manager, train, mentor and evaluate the direct sales team
• Track personal and report sales statistics and report on status of pending contracts from personal and team targets
• Develop and deploy plans to increase Y-India Direct sales group performance in coordination with the Director of Sales
• Work with Business Development representatives to bring in new business
• Work with Marketing Manager and Director to identify sales lead sources and investment for YIndia, in a coordinated plan to improve results
• Deliver a written account plans and department plans as requested. Include a request for any support resources, including any marketing support, required to hit quota assigned. Following approvals, implement the business plan
• Be prepared to provide detail reporting detail to the Director of Sales on Monthly Revenue accounting, Forecast and Activity, both personal targets and sales team performance
• Provide write-ups "for approval of any "out of box" sales to hand-off with sales orders to Y-India Operations/Accounting for upfront visibility.
• Promote a positive sales and service TEAM aspect at Y-India while acting in a professional manner.
Recruiting and Selection:
The Director himself is involved in all the recruiting function as he wants to know firsthand who is getting into the organization. They advertize online as the reach is more and that’s where their target market is, i.e. young employable graduates interested in sales.
The selected candidates are put through a rigorous training session, again conducted by the director himself. Explaining, how to approach schools, colleges, and various other educational institutions. And, the training teaches them how to develop Point of Contacts (PoCs).

In case of sales representative selections, the process includes screening the resume and after which there is an interview. For those who are located in Delhi, the interview takes place at the head-office, while for others it’s either voice chat (Skype- preferred) or telephonic interview. Post interview, an individual has to go through a couple of simulated conversations. Basically the top most criterion for selection is the experience in sales that one possesses, followed by one’s communication and persuasive ability.
Compensations:
Since Y-India is a startup company, their pay package is not that great. The sales representative’s salary basically has two parts to it, the base salary and the remaining is commission based. The base salary is around Rs4000/- and a commission of 20% of the sale is provided.
There are no yearly bonuses as of now, since Y-India is just seven to eight months old. As for the interns, it is clearly mentioned that there will be no stipend paid, but the same commission method is used. For every sale an intern makes, he/she receives 20% of it. Y-India has made it 20% so as to bring the commitment factor within the interns as well. The minimum cost for the product is Rs 20,000 so a sale would yield an individual a commission of Rs 4000/-. Other expenses in case of interns are not reimbursed.
Sales expenses:
The travel expenses have to be borne by the sales guy himself. However, in the case of going to another city/going out of station to meet potential customers, the travel, food and accommodation charges will be reimbursed by Y-India.
The regular food charges have to be borne by the employee himself/herself.
Territory Assignment:
Territories are assigned to a sales representative by the Director himself. Representatives are assigned locations based on the language they speak and the concentration of Schools, Engineering colleges and start-up Coaching center. Based on the research on the educational institutions, the sales representatives are allocated the area that one has to cover. Also it is made sure that no two sales representatives or an intern are operating in the same area. This is done to avoid conflict amongst them. For a sales representative, based on the number of educational institution that exists in the region that he is operating at, the conversion rate is decided. Generally for every 50 institutes a sales representative visits, he is expected to have a hit rate of 10%.
An intern working on behalf of Y-India is given a choice for the location, but it is made sure that no two or more interns are working in the same area. Also an intern is saved from attaining a target, though they are encouraged to have a hit rate of one per ten educational institutes they visit.
Performance Appraisal:
As mentioned earlier, there are no performance appraisals as of now, the commission that the company provides is lucrative enough (20% of the sales value) to generate the desired level of commitment also the fact that it is a new company with limited resources, Y-India has not experienced a situation in which they had to offer one. In due course of time, Y-India will definitely come up with some kind of performance appraisal system.
Recommendations:
* Taking in lots of interns may not be that effective as they lack experience and sometimes the outcome might not be as effective as desired and also the educational institute might have a negative impression about the company.

* Also, the fact that information flow is generally through Skype, some experienced salesmen, may not be so apt with technology, thus they might not like the concept.

* Have dedicated heads in major zones. At least one per zone i.e. South zone, North zone, etc. This will help better management of the sales force.

* Have better compensation packages for the sales employees. Reimburse the travel expenses within the city/have something like a fixed travel allowance. This would motivate the employees to give their best.

* Call the sales force to a centralized location for training and train them more professionally i.e. conduct something like a mock interaction with a client so that they have a better and more professional outlook when they meet potential clients.

* Avoid gate crashing by the sales force at schools/colleges and other educational institutions. Make prior appointments and brief them about the product on the phone and find out if they would be interested in taking it further. This would increase the hit rate and thus work by the sales force more effective.

* Points of Payment: the point of payment also plays an important role in case of sales. Thus we recommend that Y-India comes up with more efficient way of customer payments. So far it has only one way of making payment. The institutes have to make a DD and send it across to Y-India, which we feel is both ancient and time consuming and considering the tight schedule of the administration people. We would suggest Y-India to come up with other means of payment like cash and e-payments.

* Improve the Website: The website right now is not maintained properly. Poorly maintained website doesn’t create a good image in the minds of prospective customers. Also, there is a lot more potential if the website is used properly. Give functionality for schools to contact Young India through the website. This will increase the possibility of sales.

* Increase the Product Quality: Currently, there are some bugs in the product. Some features don’t work properly. Customers notice these flaws in product demonstrations and become doubtful about the quality of the product. Young India needs to ensure that the product has absolutely no bugs and all features promised in the demonstration work properly.

* Presence on Social Media: Young India needs to use social media like Facebook and Twitter more effectively. These media will enable Young India to make them more popular and also communicate real time with existing customer/prospective customers.
* Increase Visibility in Target Segment: Making the product/brand familiar is very important for Young India, as it is a new entrant in the market. Young India should sponsor inter-school competitions or organise guest lectures in schools for this purpose.
* Good effort 7.5/10

Sales 7.2 of 10 on the basis of 1216 Review.