Blue Ridge Coffee Case Study Sales Strategy

Blue Ridge Coffee Case Study

Sales Strategy for the Flavored Coffee

Following the introduction of the new flavored coffee, there is need for coming up with a sales strategy for increasing the sales of the new product. The strategy gives details on how the product will reach the customers, and in the end, making them aware of the difference between the new product-line with the other products from the company. These strategies are necessary for improving the total company sales, consequently increasing the profitability of the company. The strategy is also necessary for the coming up with sales activities that position the flavored coffee to a state where it can gain a competitive advantage in the market. The most appropriate sales strategy of choice for meeting the sales objective of the company is the triple-tiered sales strategy (Frain, 2009).

Justification of the recommendation

The strategy is necessary for the establishment of a good relationship between the wholesale clientele and the company. The association that the regional sales teams have with the wholesale customers is vital for giving the company the necessary information regarding the performance of the product. The triple-tiered strategy is necessary for the identification of the challenges that the competitors are going through, and building on their weakness to increase the sales volume. An element of a weak competition in consideration involves brand recognition. Carolina Coffee Roasting Company, Island Joe's and Baronet Roasters have low brand recognition, which the company can build on to develop the product, consequently increasing the sales volume. The third element in the strategy involves getting information from the customers directly regarding the flavored coffee. Through this, the company can make adjustments suit the customers' needs and after taking care of their needs, the sales volumes will increase because of their contention.

Market and sales potential

According to estimates from the National Coffee Association and some experts in the industry, the consumption on flavored coffee is at the 40% mark. They give a suggestion that the percentage is expected to rise because younger people are increasing their coffee uptake. The association gives an estimate that out of the 40%, about 25%-30% coffee consumers take the flavored coffee, which gives the company a positive market outlook. From the data provision on the market potential, it would be necessary to implement the sales strategies for maximum benefit. The data shows that there is room for growth in the industry, which gives an assurance that there is room for increasing sales volume (Frain, 2009).

Segment

Annual Sales

Estimated Increase

Food Service

$3.8 M

+12%

Corporate and Office Distribution

3.7 M

+15%

Coffeehouses (Retail)

2.5 M

+17%

Operators

1.4 M

+12%

Grocery Stores

700,000

+15%

TOTAL

$12 M

Sales data that supports the recommendation

The increase in the annual sales also shows that the sales volume is improving. Judging from the graph below, it is evident that the sales volume of the company is increasing, and there is still market for more increment.

Methods of generating demand for the new product

One of the methods that the company should use for increasing the demand for the product would be to introduce consumer promotions for the new product (Frain, 2009). By promoting the products to the consumers, or by giving them free samples, the demand for the product will increase because their confidence on the quality of the product increases. It is necessary to make the consumers aware of this product before the commencement of consumer promotion. Advertising through the mass media is vital as a cost-effective method for the generation of demand for the product (Frain, 2009).

Apart from customer promotion, the other way of increasing the demand would be to set prices relative to the volume of purchases. If the customer gets a lower price for purchasing a larger volume of the product, the demand for the product increases, consequently increasing the sales volume of the company.

Sales forecast with the moving average techniques

Monthly sales

Sales ('000)

January

February

March

By assuming that the monthly sales are as shown in the table, the average sales for the 3-month are 130.33 thousand dollars, which is the prediction of the sales to for the next month, April. After the realization of the new sales in the month, the calculation of the average begins from February to the new month, whose average predicts the sales of May. This is a simple way to predict the sales of the next month because of the smoothing effect of the moving average method.

Sales message recommendation

a. Provide a motivation for the message you recommended.

Through the introduction of the new product to the market, it is clear that the company will be in a position to meet the clients' satisfaction. On the development of the product, there were certain considerations since the product is because of a market research on the various aspects that most consumers are considering on the purchase of similar products. This product is promising to the market in terms of sales enhancement.

a. Analyze sales data to support your recommendation.

From the previous sales pattern, the organization was challenged to come up with a product that has modifications that go hand in hand with the requirements by the clients to increase the sales record. Through the analysis of the sales data, it is evident that sticking with the same product on the current market may diminish the sales record by the organization in the current market.

Task Three:

Task:

Prepare a report to senior management of the Wholesale Division of BRC in which you do the following:

A. Recommend an organizing strategy for the sales unit based on the company goals

The organization of the sales unit play critical role to the process of accomplishing business strategy and marketing objectives of any company. The Blue Ridge Coffee has to invest immensely in sales organization to enable it attain the short-term and long-term goals (Finnegan & Willcocks 2007). Apparently, the effectiveness of the organization has considerable effect to the capacity of the organization to perform in terms of sales, customer satisfaction, market position, and profits. Upon attaining these fundamental components of business, the company would be able to compete effectively against its rivals as well as achieving internal objectives (Finnegan & Willcocks 2007). The wholesale division should introduce new initiatives regarding sales management and salespeople with a view to realize the effectiveness of the requirements of the organization. A comprehensive assessment of the sales organization is inevitable in order to enable the company accomplish its aim of increasing sales in line with the company goal. The assessment would include total overhaul of the organizational sales structure (Finnegan & Willcocks 2007). It is necessary that the management of the wholesale division perform a comprehensive evaluation of competence and efficiency of the workforce in the sales section. This would help appraise the performers and at the same time retrench or send the non-performers packing. In essence, appraisal provides an avenue through which the organization can restructure the workforce to meet the requirements as spelt out in the mission and vision of the organization (Finnegan & Willcocks 2007).

Apart from the workforce, the division shall consider renovating the sales technology to match the contemporary standards. It is time the organization stopped apply the ancient technologies in the sales section. Instead, it should take advantage of the advances of technology. For instance, it may enhance sales capacity through online advertising, marketing and sales to its esteemed customers located in different parts of the world. Prospective buyers will also find a chance to examine and compare Blue Ridge products to those of competitors in the market. A greater emphasis of the customer relationship management is another important aspect that helps boost sales and the general organization of the sales section of the company (Wallace 2004). Proper management of customer relationship is an important strategy in that it makes esteemed customers and potential customers feel appreciated by the organization. Besides, the enterprise should invest in strategies that would enhance expense reduction as well as expanded use of strategies as regards the market segmentation. Such trends influence the need to develop uncontrollable sales organization alongside assessment of sales performance and evaluation of the alternative methods of organizing sales. Other organizing strategies of the sales unit based on the company goals include sampling research, media promotions and personal sales (Wallace 2004).

1. Discuss the relationship between the sales force organization and the areas of promotion in addition, marketing within the BRC.

The sales force organization is an important tool that determines the success of all sales strategies and future prospects of the company in the highly competitive market. Depending on the nature of the sales structure (highly structured or less structured), the promotion and marketing procedures might be complicated or simplified (Wallace 2004). A centralized sales force tend to confine promotion and marketing activities and strategies at one particular point of the organization whilst a decentralized sales force gives room for devolution of promotion as well as marketing activities of the Blue Ridge Coffee. The organization set up decentralized structures on regional basis (Wallace 2004). Sales representatives execute their duties effectively and are accountable to specific managers across the U.S. In effect, the marketing and promotion sections of the organization would operate such that their personnel report to managers at regional levels. Proper organization of the sales force is critical to overall success of the wholesale division and the company in general (Wallace 2004).

Since BRC is a formal organization with clearly defined tasks for salespersons, the promotion and marketing strategies would also tend to be formal (Wallace 2004). If the company had adopted an informal structure to its sale force, the marketing and promotional strategies would also be less formal and less rigid. Overall, the customer service, promotion and marketing tends to be more comprehensive when the organization adopts decentralized along with formal sales force organization (Wallace 2004). On the contrary, smaller companies would operate on relatively centralized location. The market coverage of such company would also tend to be less intense. Blur Ridge Coffee should expand its sales force organization to accommodate the internal and external factors that affect sales and success of the business. Even though it has adopted a formal sales force, which is relatively decentralized, the array of sales force, marketing, and promotion units should not derail the overriding goal of the business enterprise, which is to earn profits (Wallace 2004).

a. Design an organizational chart reflecting an internal sales force structure that will most effectively maximize sales.

The wholesale division may adopt a sales force structure that is based on the geography, product, client, mixes, and cooperation.

B. Analyze technology that should be integrated into sales operations to improve sales performance.

An integrated IT system has the capacity to extend the value of sales software. With the integrated form of technology, the sales staff and sales operations in general will improve customer service (Wallace 2004). Apparently, the customers deserve better services; better services could arguably earn Blue Ridge Coffee competitive advantage over other companies in the market. Modern forms of technology will enhance sharing of information among employees in the sales section. It will further enhance sharing of information between the sales team and other sections of the wholesale division (Wallace 2004). Through information sharing, every salesperson would be in a better position to progress sales as well as contribute to the overall goal of the company of providing quality services to all its customers. Mobile cell phones have become essential gadgets for sales section of every organization. The device promotes communication and the culture of sharing information, which is part of the strategies adopted by BRC in its sales operations (Wallace 2004).

Laptops and complex mobile devices provide internet services that are vital to communication processes, sharing of information, and transfer of sales data and information across departments. They will also enable sales executives to be acquainted with the current trends in the market (Palmatier et al. 2003). The sales team will thus coordinate with marketing and promotion teams to look into ways of enhancing attractiveness of company products in addition to strategies of facilitating sales volume. Apart from facilitating sharing of information, the gadgets through their internet service will enhance research and development. Market research is an important component of the sales and marketing department in every organization. The sales team in particular will be able to access resources online with a view to find information on effective strategies to improve customer services (Palmatier et al. 2003). Access to the internet will further enhance the process of establishing better products, which is an important aspect to winning customer confidence. Since most competitors have displayed some of their products online or even the website, Blue Ridge Coffee will be in a better position to compare and contrast their sales operations with those of competitors. Although BRC has unique sales operations and strategies that have guided its performance over the years, it should compare mechanism and strategies that rival producers of coffee products apply to gain numbers (Palmatier et al. 2003).

The CRM will take the sales operations a notch higher by capturing more details concerning customer relationships. Through CRM technology, it is easier for Blue Ridge Coffee Company to record customer contacts including copies of emails and letters during conversations on phone. The sales personnel will also find it easier to record emails and copies of letters during a meeting (Palmatier et al. 2003). They will then brief themselves through the system before embarking on the effort to contact the client particularly on matters touching on products and services. The sales person would also find it less complicated the process of examining and analyzing customers' approval and reservations about of BRC. This information would be critical in decision-making and process of analyzing strategies that could assist in improving sales, marketing and promotion approach. Just as it promotes sales operations, modern technology will help the company avoid risks (Palmatier et al. 2003). A wide range of sales systems and software will provide the company with resources and tools critical to curb risks. The risks would emanate from flawed technologies previously used by the organization. Proper planning would be instrumental to introduction or establishment of new system and making sure all salespersons can use it. Purchasing sales tools such as add-ons is another effective strategy to advance sales operations (Palmatier et al. 2003).

1. Discuss appropriate customer relationship management (CRM) technology for the division.

Customer Relationship Management (CRM) technology is vital for service delivery in the wholesale division of Blue Ridge Coffee. CRM software has the capacity to provide an overview of the projected sales for a given duration. The technology enables salespersons to initiate mechanisms that will help them maintain the level of sales for the company (Finnegan & Willcocks 2007). CRM software will facilitate the process of reviewing past and present achievements of the sales department and the division as a whole. It establishes a clear path to predicting future prospects of the organization despite the current challenges affecting the organization (Finnegan & Willcocks 2007). Through the forecasting data, the company can plan its marketing campaigns and prepare adequately for the increases or decreases in the volume of sales. CRM systems may also help in the management of sales territories in an effective and efficient manner (Finnegan & Willcocks 2007). From a broader perspective, the company can apply the CRM technology to protect its market niche not only in the Virginian branch but also in other parts of America. The division will initiate strategies that would help evaluate the potential of every territory. This will help promote the performance of the team despite the internal and external intrigues, which might derail sale operations and planning. CRM will enhance the process of building customer relationships, improving lead conversation, and pricing and order fulfillments (Finnegan & Willcocks 2007).

C. Discuss changes in managing sales performance to increase sales by doing the following:

Recommend a compensation plan.

Human Resources Compensation Strategy

#1- Hiring Process

The Blue Ridge Coffee will be paying its employees on a hiring bonus instead of higher salaries.

The company is in a good position to conduct its hiring process effectively, instead of hiring people in a rush. The Company is glad that it is managing this process well than before.

#2- Balancing Compensation Packages

The Blue Ridge Coffee Company should undertake various initiatives and projects in identifying market salary ranges. The Company should identify the underpaid and the overpaid workers in trying to balance wage costs in the Co-operation. As part of the Company's strategy, the company should freeze compensation packages of various senior executives and its top performers (Graham, 2008).

The Company should also cut base salaries of most employees during their first five months of employment. This will save the Company a lot of money.

# 3- Benefits

The Company can do away with salary in lieu of the paid time off. Instead, the Company can lose it or use its policies. This will enable the Company to eliminate huge payouts with its employees in case they leave.

# 4- Employee Training and development

The company can create an admin pool. This will be beneficial in the development and training of the company's employees. The team will play various roles in the organization. By enacting this team, the organization will not have to create temporary workers. The organization can also create the post of a consultant in the Human Resources department to help clients utilize job training or the reimbursement of wage programs (Graham, 2008).

# 5-Staff Resourcing

The organization can collaborate with local colleges and universities in hiring interns at a particular salary. In this case, the interns will not receive benefits; instead, they will get job training at a low payment rate.

# 6 - Organizational Communication

The organization will be transparent in its financial dealings. The company director will have to give financial update on a weekly basis.

This compensation plan will be beneficial for the company because, most of the company's dealings will be transparent to the employees. The employees will be in a position to understand how the company uses its money, hires and dismiss employees.

2. Create a job description for an entry-level position to the sales force that includes the following:

Position title

Sales Coordinator

Position overview

A sales coordinator or the sales enforces will primarily help the sales team. In most cases, they will focus on managing sales documentation and distribution. In some cases, they will manage schedules that relate to marketing in the company.

Sales Coordinator prepares and follows up sales quotations by the clients. They also negotiate terms with the company's customers at a cost that best suit both parties.

The Sales Coordinator will be the link between the client and the company in terms of providing services that suits the needs of the clients.

The sales enforcers will work with the company's sales team in assessing departmental progress and development of sales.

Sales Coordinator will also oversee any supercharges and evaluate any adjustments to both internal staff and external staff.

Key duties and responsibilities

The sales coordinators and marketing assistants must be able to support the sales teams in generating sales. The must also be in a position to help the sales team meet their targets and reports. As part of their duties, they must be able to proof read marketing publications and order promotional items from research venues and external vendors. They should also be able to attend external meetings for the benefits of the company.

Qualifications

The sales force, coordinators and the marketing assistants in the company should have perfect interpersonal skills. The sales force, marketers and the marketing coordinators work by interacting with multiple personalities, therefore, they should also be excellent in written and oral language. Computer being an important part of the marketing business, the sales coordinators must have strong computer skills and perfect knowledge in spreadsheet, presentation, work processing and email application. The candidates must be creative and curious. Regarding educational background, the sales force and coordinators must have a Bachelor's degree in Computer Science. They also have a five-year experience with various implementations technically especially in CRM projects.

3. Discuss motivation techniques to generate improved sales force performance.

Motivating the sales force team is beneficial in improving their performance while on duty. A better basic human need understanding is influential in motivating sales enforcers in the company. This will give them the idea that the company is ready to support them in line of their duty. The organization will have to motivate and engage the sales force to increase their chances to perform for the company. Salary increment is the best way of motivating workers. Increasing the salaries of the sales enforces will motivate the team even more. In a situation where some of the sales team is almost at the retirement age, the company can lure them into different jobs and positions.

Discuss the most effective assessment techniques for evaluating and improving sales for each of the following;