Sales Presentation
Dick Shoemaker was getting very close to achieving his sales quota for the quarter, but he still had four weeks to go. He knew that if he could just get his major account, Best Value Markets, to increase its orders, he would have a very good shot at the top salesperson spot and win the sales contest his district was having.Dick had just gotten a memo telling him that a 50-cent coupon was going to be running in the Sunday paper in two weeks. He knew that with the proper sales presentation and the coupon promotion to back it, he should be able to fill his quota next week with a sales call to Best Value. Dick sat down at his desk and started planning whathe should do.
Account Information Best Value Markets is a large chain of stores (50 stores) that has an average weekly volume of $150,000 per store. It is the third-largest store chain in its market area and has an 18% market share. Last year was its best year with Dick's company brand, Taster's Club coffee. Sales were up 14% for Taster's Club overall, up 15% for group coffee, and up 10% for instant coffee. The overall sales increase was double the overall volume increase of only 7%. Best Value sells an average of 114 cases of ground Taster's Clubper week. The average sales volume per square foot of space in the Best Value Markets is $6.00 per week. The overall profit margin that the chain operates with is 21%. The total store inventory turns over every three weeks. Best Value has used Taster's Club displays on previous occasions, and these have generated up to a 64% increase in volume, compared with the average volume.Dick is a good friend of the coffee buyer, Fred Acosta, and of the merchandising manager, Doug Hendricks. Best Value has a new sales promoter, John Barringer, who reports directly to Doug Hendricks. John is the key decision maker on the monthly promotions made in the coffee area, as well as a number of other areas. Dick has been working with John, but he would not say they are friends at this point. John has recently transferred from the nonfoods area and does not have a great deal of grocery knowledge.Best Value features the Taster's Club brand monthly with good ad space (food column inches) at competitive resale prices. Last year it ran 15 ground and 10 instant coffee features; however, it did not use any displays to back them up.
Product Information With the memo Dick received telling him about the coupon was a description and a photo of a new display that Taster's Club had av ailable, at no cost, for retailers. From the photo and description, Dick thought the quality of this display was the best he had seen in a long time. The display only takes up 2.4 square feet in a store, but it holds 12 cases of one pound cans of Taster's Club. The company projects that this display should empty in one week. Each case of Taster's Club contains 12 one pound cans. These cases cost $43.44, but if the retailer pays in 30 days, $1.80 is deducted from the invoice. Most other items the retailers buy have to be paid for in 10 days to get any discount. The suggested retail price for each one pound can is $3.99. If a retailer uses this pricing structure, each case of Taster's Club coffee should generate a 13% profit margin on sales, or $6.24 of profit per case. Dick would really like to sell a feature and a display for each store in his sales call next week.
Questions 1.To whom should Dick make his presentation? 2. Develop a sales presentation outline showing the key facts about both the account and the product that would be useful for making the sale. 3. What are three objections that the buyer may make in his presentation?
Dick Shoemaker was getting very close to achieving his sales quota for the quarter, but he still had four weeks to go. He knew that if he could just get his major account, Best Value Markets, to increase its orders, he would have a very good shot at the top salesperson spot and win the sales contest his district was having.Dick had just gotten a memo telling him that a 50-cent coupon was going to be running in the Sunday paper in two weeks. He knew that with the proper sales presentation and the coupon promotion to back it, he should be able to fill his quota next week with a sales call to Best Value. Dick sat down at his desk and started planning whathe should do.
Account Information Best Value Markets is a large chain of stores (50 stores) that has an average weekly volume of $150,000 per store. It is the third-largest store chain in its market area and has an 18% market share. Last year was its best year with Dick's company brand, Taster's Club coffee. Sales were up 14% for Taster's Club overall, up 15% for group coffee, and up 10% for instant coffee. The overall sales increase was double the overall volume increase of only 7%. Best Value sells an average of 114 cases of ground Taster's Clubper week. The average sales volume per square foot of space in the Best Value Markets is $6.00 per week. The overall profit margin that the chain operates with is 21%. The total store inventory turns over every three weeks. Best Value has used Taster's Club displays on previous occasions, and these have generated up to a 64% increase in volume, compared with the average volume.Dick is a good friend of the coffee buyer, Fred Acosta, and of the merchandising manager, Doug Hendricks. Best Value has a new sales promoter, John Barringer, who reports directly to Doug Hendricks. John is the key decision maker on the monthly promotions made in the coffee area, as well as a number of other areas. Dick has been working with John, but he would not say they are friends at this point. John has recently transferred from the nonfoods area and does not have a great deal of grocery knowledge.Best Value features the Taster's Club brand monthly with good ad space (food column inches) at competitive resale prices. Last year it ran 15 ground and 10 instant coffee features; however, it did not use any displays to back them up.
Product Information With the memo Dick received telling him about the coupon was a description and a photo of a new display that Taster's Club had av ailable, at no cost, for retailers. From the photo and description, Dick thought the quality of this display was the best he had seen in a long time. The display only takes up 2.4 square feet in a store, but it holds 12 cases of one pound cans of Taster's Club. The company projects that this display should empty in one week. Each case of Taster's Club contains 12 one pound cans. These cases cost $43.44, but if the retailer pays in 30 days, $1.80 is deducted from the invoice. Most other items the retailers buy have to be paid for in 10 days to get any discount. The suggested retail price for each one pound can is $3.99. If a retailer uses this pricing structure, each case of Taster's Club coffee should generate a 13% profit margin on sales, or $6.24 of profit per case. Dick would really like to sell a feature and a display for each store in his sales call next week.
Questions 1.To whom should Dick make his presentation? 2. Develop a sales presentation outline showing the key facts about both the account and the product that would be useful for making the sale. 3. What are three objections that the buyer may make in his presentation?
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