Sales Fundamentals

Topics: Customer service, Marketing, Consultative selling Pages: 2 (549 words) Published: June 17, 2013
One of the key drivers of current Philips business strategy is fixing sales fundamentals at main outlets of Philips customers (retailers). Sales fundamentals are basic indicators like shelf share, display share, leaflet share and merchandising vs. Philips market share per key categories. Basically, those indicators (sales fundamentals) should be at least or ideally higher than the market share. Let’s take one category as an example – Philips has 60% market share in male grooming category so Philips should have at least 60% of total shelf with shavers vs. key competitors, 60% of leaflet share, etc. at most of the customer outlets. This approach is seriously taken by the largest suppliers within other industries like FMCG. This approach has been agreed after performance of several store checks, where there were identified significant opportunities for improvement like out of stocks, poor visibility and mainly not executed sales fundamentals. There was also another important finding that other brands face similar issues with poor execution at outlet level vs. what has been agreed centrally with the customer. The business strategy was clearly defined and there were also changes in the organizational setup in order to dedicate enough resources to perform regular store visits of the main customers. What was still missing was some tool that would help sales representatives to quickly realize what should be done during the store visit and how to gather all important information about whole category. Here comes the idea how IT could help with new solution that could also become a competitive advantage. Solution could be that each sales representative is equip with tablet that will have all necessary information for each customer. At this moment, sales representatives use just paper versions of central listing and pricing. They have to check if all listed products are available in the store, what is the available stock, pricing of all products and what is the share of...
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