Post on 14-Oct-2014
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MKTG208: Sales Management – Case Analysis
MARRIOTT - SALES FORCE ONE
The spirit to serve
Agenda
Background Information
Sales Force One: Introduction & Problem Analysis
Solutions
Potential Risks
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Background Information
Industry Analysis
Threat of new competition
Threat of substitute products or services
Bargaining power of customers (buyers)Bargaining power of suppliers
Intensity of competitive rivalry
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About Marriott
3000 properties Worldwide presence: 65 countries Brand division
Tiered to cater for different customer needs
Marriott Brands
Exquisite Luxury Hotels
Contemporary Quality Hotels
Quality Destination
Hotels
Extended Stay Value Hotels
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Opening of the restaurant « A&W Root Beer », Washington DC1927
1957First Hotel « Twin Bridges Motor HotelNew ventures and franchised open quickly
Marriott Corporation1967
1969First international Hotel: Acapulco, Mexico
Division in 3 areas: food and services/ airlines in-flight services/ hotels and restaurant1970
1987Starting luxury services: Marriott suites
Marriott corporation splis into Marriott International Inc and Host Marriott Corporation1993
1997SFO project
Key Dates
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Spirit to Serve
Associates
Guests
Com
mun
ities
Marriott Core Values
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Sales Force One: Introduction
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Property A
Property B
Property C
Property D
CUSTOMERS
Traditional Model
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Problems with Traditional Model
Uncoordinated sales effort Unclear allocation of tasks• Individualized Sales Team• One customer, multiple contacts
• Require more defined role to serve diverse customers
Chicago
Sales Force One Model
New York
Regional SFOCustomer
Regional SFOCustomer
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• Differentiating Strategy– Becoming customer-oriented
• One primary point of contact to solve all inquiries
• Bottomline– Increasing revenue
• “Adds US$1 billion in the long run”
– Solving the problems of the traditional model
Sales Force One
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Sales Force One: Problem Analysis
SFO: Problems AnalysisMarriot Brand Property Owners
Sales Team Customers
SFO: Problems AnalysisMarriott Brand
• Advantages– Streamlining of sales force for
easier management– Reduced overheads
• Disadvantages- Encounter resistance from
various stakeholders
SFO: Problems AnalysisProperty Owners
• Advantages– Exposure to a larger market
potential (Cross-selling)
• Disadvantages– Loss of autonomy in sales
function– Dilution of customer base
SFO: Problems AnalysisSales Team
• Advantages– Clearly defined roles– Establish better relationship
with customers
• Disadvantages– Shared commission– Require Migration– Loss of efficiencies
SFO: Problems AnalysisCustomers
• Advantages– Reduced disturbance– One primary point of contact
• Disadvantages– Loss of efficiencies– May damage brand perception
and hence loyalty
SFO: Problem AnalysisSummary
Sales Team
Loss Motivation
Lack of Knowledge
Customers
Loss of Efficiencies
Loss of Brand LoyaltiesProperty Owners
Loss of Autonomy
Dilution of Customer Base
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Recommended Solutions
Reco
mm
ende
d So
lutio
ns Scrapping SFO
Existing SFO
Revising SFO
Individual sales teams but integrated data
system
Bidding system for individual hotels
Co-ordination between SFO
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Individual properties retain control
Hotels have to work efficiently to win the bid
Allow more information exchange and co-
ordination
How: Rationale:
Recommended Solutions
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Property A
Property B
Property C
Property D
CUSTOMERS
Recommended Solutions:Scrapping SFO
Recommended Solutions:Scrapping SFO• Establishing Database
Last ContactedCustomer Rank
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Recommended Solutions:Scrapping SFO
Advantages• Retaining properties’ autonomy•Sharing of customer database•Reduced multiple calls to customers
Disadvantages
• Loss of efficiencies• Constant updates are
required• Intensified competition• Costly
Chicago
Recommended Solutions:Existing SFONew York
Regional SFOCustomer
Regional SFOCustomer
Bidding System
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Recommended Solutions:Existing SFO
Advantages• Retaining properties’
autonomy• Improved efficiencies• One primary contact
point
Disadvantages
• Intensified competition• Cutting cost to drive
competitive advantage• Leads to sub-standard
level of service
Recommended Solutions:Revising SFO
Sales Organizations Sales Force Motivation
Sales Force Training
Tier 3SpenderTop 15%
Tier 2Middle Men
50th to 85th Percentile
Tier 1ConservativesBottom 50%
Customer Segmentation
Country’s SFO
Sales Structure:At Country Level
Tier 3Spender
Tier 2Middle Men
Tier 1Conservatives
Tier 3SFO
Tier 2SFO
Tier 1SFO
Regional Sales Director
Country Manager A
SFOTier 3
SFOTier 2
SFO Tier 1
Country Manager B
SFOTier 3
SFOTier 2
SFO Tier 1
Country Manager C
SFOTier 3
SFOTier 2
SFO Tier 1
Sales Structure:At Regional Level
Region ASFO
Region BSFO
Region CSFO
Region ACustomer
Region BCustomer
Region CCustomer
Global SFO Office
Sales Structure:At Global Level
England
Sales Structure:Process
Singapore
Singapore SFO
Customer
England SFO
Customer
Database System
Sales Functions
Sales Force
Country Sales
Manager
Regional Sales
Director
Global SFO
Office
SummaryPlanning
SMART GoalsSales Objectives
Sales Organization
StaffingSources of
Employment
TrainingNeed Analysis
Organizing TrainingCollecting feedback
Leading & Motivating
Controlling
Sales Planning:Setting SMART Goals• Leveraging on excellent customer service
provided by highly-motivated sales representatives, SFO is to increase total global sales revenue by US$ 1 billion in the next five years – US$100 million in the first year of implementation, US$ 200 million in the 2nd year, US$250 million in the 3rd and 4th year and US$200 million in the fifth year.
• Four Indicators– Sales Quota– Customer Satisfaction Index (CSI)– Employee Satisfaction Index– Hotel Feedback
Sales Planning:Setting Objectives
Booking rates = no. of successful bookings/total number of inquiries
Sales Planning:Setting Quota
Sales Volume Booking RateNo. of calls made
to other SFOs
• Sources:– Internal Hiring• Serves as a career progression path• Candidates possess knowledge about the
company• Major sources
– External Hiring• Internal sources may not be sufficient
Staffing
• Sources:
Staffing:External Hiring
Job advertisement Headhunting Management Trainee
• Organizational Needs:
Training:Need Analysis
Sales Skills Customer Satisfaction Employee Satisfaction• Closing the deal• Basic knowledge
• Exceed customers expectation• Service Recovery
•Socialization•Leading & motivating
Sales Skills• Closing the deal• Basic knowledge
Customer Satisfaction• Exceed customers expectation• Service Recovery
• Personnel Needs:Training Internal Hires External Hires Management
Trainee
Phase 1
Orientation √ √
Basic Sales Skills √ √ √
Persuasive Skills √ √ √
On The Job Training √ √ √ *
Phase 2 Rotational Stay √ √
Phase 3
Personal Service √ √
Service Recovery √ √
Service Excellence √ √
Living-the-Culture √ √
Training:Need Analysis
Training:Evaluation
Training questionnaires• Training effectiveness• Trainer’s effectiveness
Post-training performance• Before-and-after variance in
Sales• Before-and-after variance in
CSI• 360 degree feedback
Leading & MotivatingMonthly Meeting Associates Night
Heart of the House Bonus & Incentives
Controlling
KPIs 360o Feedback Customer Appreciation Night
Global SFO Meeting
Regional Meeting
Controlling
Data at Individual countries
Regional Meeting
Global SFO Meeting
• KPIs• 360o Feedback• Customer Appreciation Night
• Comparison with other countries• Sharing of best practices• Evaluation at Regional level• Budget review
• Evaluation of performance• Offering feedback• Budget review
Evaluations
Benefit Cost
Potential Risks
Resistance Bottleneck
Risk Mitigation
Stage 1Go Local
Stage 2Go Regional
Stage 3Go Global
FUNFACT:In reality, SFO is at Stage 1! SFO is not implemented in Singapore!
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