LETS PRINT. ( A sales and marketing intern`s journey through the litho-printing service industry)

LETS PRINT AT HERITAGE PRINTING

(2014)BY

KEITH KACHIKIRA

(STUDENT ATTACHEE)

1

June 2, 2014SALES TACTICS PROPOSALS

EXECUTIVE SUMMARY:

In this project my aim is to part my strategies which the company can use in order to maneuverthe

rough printing terrain. I plan to establish various selling strategies by inducing sales

management

techniques and marketing principles aligned with a printing company. It must show the industrial

analysis, capitalization, human resources management, the possible segmentation strategies,

potential

in the printing industry, costs and revenue, how affect our day to day lives, and the type of

competition we face from different types of organization.

This project aims to emphasize on the strategies Heritage Printing Pvt. Ltd, can carry out in thisvast,

dynamic, and ever changing environment. These strategies must have an impact in

various

dimensions of the printing industry. The printing industry has been hammered by cheap

imports

from manufacturing companies in countries like China, and South Africa who use

advanced

machinery and an inexpensive labour market as an operating advantage. Of late the industry

has been

affected by substitute services like internet accessibility which is getting cheaper by the day;

hence

book users turn to use an alternate of e-learning. Easy Internet access affect the printing

industry in

the sense that, the client cuts cost on things like transportation, on paper material, overprinting,

and

unsold stocks.

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TABLE OF CONTENTS:

1.

2.

3.

4.

5.

6.

7.

8.

Executive Page ………………………………………………………………………………………………….

2

Table ofContents…………………………………………………………………………………………

Background…………………………………………………………………………

………………………..

Statement of

Problem……………………………………………………………………………

………

SWOT

Analysis……………………………………………………………………………

……………..

Sales

Objectives…………………………………………………………………………

…………………

Human Resource

Management………………………………………………………………………

Technical approach to

selling……………………………………………………………………….

3

4

4

5

6

7

8

8

9

10

10

11

13

13

14

14

14

15

a.

b.

c.

d.

e.

Sales teamactivities………………………………………………………………………….

Strategic

Planning……………………………………………………………………

………..

Strategic Management

Planning…………………………………………………………

Factors Influencing Strategic

Planning……………………………………………….

Strategic Marketing

Planning……………………………………………………………..

9. Strategic Sales Force Decisions……………………………………………………………………..

a. Market

Access……………………………………………………………………………

……….

b. Account Relationship

Strategy……………………………………………………………

Budgeting………………………………………………………………………………………………………

a. Estimated SalesBudget……………………………………………………………………….

CompetitorAnalysis…………………………………………………………………………………….

10.

11.

3


BACKGROUND

Heritage Printing is a printing company that was incorporated in February, 2013. Its mainbusiness

lies in printing of newspapers, and books, plus small jobs like outsourcing fliers, brochures and

so on.

We have a management department, sales department and production department who all deal

with

the day to day success of the company. We employ an average of 35 subordinates on their

payroll.

Challenges facing the company includes a drastic shift in the technological advancement whichhas

left many manufacturing companies in Zimbabwe lacking, all this because of harsh economic

conditions which has crippled most manufacturing industries not sparing the printing industry

as

well.

STATEMENT OF PROBLEM

Heritage Printing is currently facing a crisis in the sales department. There are various issues

affecting the sales department as a whole. They range from a lack of resources to socio-cultural

problems emanating from our different backgrounds we come from. The economic environment

is

currently under the thumb of limited money supply. This is where the market leaders arise and

take

form. They must maneuver, show a positive attitude, be innovative, be creative, work hard and

make

crucial decisions in order to win businesses which will help sustain the company in the long run.

Heritage printing is no exception. What is needed is shire hard work which will lead to success.

4


S.W.O.T ANAYLSIS:

STRENGTHS:

1.

The biggest and most notable strength we have as a company is the Manugraph WebPrint.

With this machine we have unlimited potential and the machine is one of the best in

the

industry we operate in.

We also have a decent enough finishing department.

The origination department is a pretty decent one too, with the machine they use being

one of

the best around.

Heritage Printing possesses one of the most skilled laborers in the industry. Especially inthe

production department.

2.

3.

4.

WEAKNESSES:

1.

Print Magic Sheet-fed is operating below market potential. Most of jobs available inthe

market are usually performed on the sheet-fed. Right know it is under-utilized

henceforth

making it almost docile.

A large wage bill with very scarce money resource in the environment we operate in.

This

leads to lack of motivation for the workers who expect to be paid.

Heritage Printing is operating under a shoestring budget, due to the harsh economic

environment.

Relatively unknown in the market.

2.

3.

4.

OPPORTUNITIES:

1.

2.

3.

The printing industry was forecasted to grow by 30% as at August 2013.

Most printing companies don’t have the Manugraph Web-

Print.

There is a gap in the digital printing market.THREATS:

1.

2.

3.

4.

Constant competition in the form of cheap import services from overseas, particularlyChina.

Absolute machinery.

Rising client

expectations.

Tight-fist economic environment, with clients refusing to let go off their hard

fought

earnings.

Companies closing down rapidly to which we get most of our printing business.

5.

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SALESOBJECTIVES

1.

2.3.

Guarantee a sale of us$20,000 per month for each individual

Use the income generated by the sales team to pay for a new Nissan NP200 vehicleCreate top of the mind awareness for Heritage Printing amongst our client base as the company of choice through promoting brand management.Create a loyal client base from the current list which includes Patriot, ZPH, and theMirror. Obtain 2 or 3 major clients which helps sustain continuity of our business.Improve turnaround time of quotations and delivery of products to ensure service quality.

Ensure a steady growth pattern of 30% new business per month from the salesteam. Generate new businesses at least one or two more clients per month.

Channel in horizontal integration. For example Heritage Printing and an Origination

company of our choice.Market Heritage Printing as a brand since we are relatively new in the industry.

4.

5.6.

7.8.9.10.

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HUMAN RESOURCE MANAGEMENT

HIERACHY OF NEEDS:

As for achieving the maximum potential of a sales team, Heritage Printing has to appreciate the

above diagram. With a highly motivated sales team, the organization has an opportunity to

fully

utilize the employee and laborer so that they can access the market potential simply because

morale

would be boosted to the pinnacle.

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TECHNICAL APPROACH TO SELLING

SALES TEAM ACTIVITIES:

Administrative

Plus or minus 25% of time.

(a)

(b)(c)(d)

Training

Preparation of budgetsExpense control

Administration of compensationprograms.

Consultation with sales representative performing below standard, consultation, personalcounseling,

or assignment to a new territory can improve the performance of many of these people.Account service/Coordination

Up 17% of time may be spent servicing accounts. Sales representatives will act as customeradvocates

and ensure that their needs are met. Coordination of customer needs with suchdepartments as production.Travel

Plus or minus 15% of time. Reason for travel is to keep in touch with conditions in the field, tohelp

close important sales, and to observe and train field sales representatives.Meetings(internal)

Plus or minus 14% of time. It is important training and offering motivational tools for field representatives.

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STRATEGIC PLANNING

Key sales force decisions are made within the limits set by the organization. Strategicmanagement

planning consists of the steps taken by the Heritage Printing to ensure long term survival and

growth

of the business. Strategic marketing planning involves the allocation of resources to programs

designed to achieve specific marketing objectives derived from the Heritage Printing`s overall

objectives.The sales force strategy is derived from the marketing strategy and includes decisions abouthow to

access the target market and the type of relationships the company will have with its

customers.

Finally the strategic plan must be converted into an operating budget.9

Operating budgets Promotion

Selling expenses

Sales force Market access strategy

Strategy Account relationship strategy

Strategic Situational analysis

Marketing Segmentation and target marketing

Planning Marketing mix program

Strategic Mission

Management Goal

Planning Strategy


Budgets will help the sales team perform a more thorough job because we will be working in

guidelines, or targets, to which it will be easier to achieve objectives. Actual results can be

compared

with figures and any changes in the objectives and strategies planned for the subsequent period

can be

recommended. STRATEGIC MANAGEMENT PLANNING

It consists of the steps taken by Heritage Printing to ensure long term survival and growth ofthe

business. It is an assessment of the outside environment and stock take of the convenience

resources

and competencies in order to chart the best way forward.FACTORS INFLUENCING STRATEGIC MANAGEMENT

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Heritage Printing`s history and

culture

Sales Force ObjectivesDistinctive

competencie

s

Marketing

Programs

Financial

Technology

Information

Resources

Financial Resources

Personnel

Management

Brand Equity

Environmental

constraints

Legal and regulatory

Demographics

Economic conditions

Technology

Competitive conditions


MissionTo efficiently deliver printing services that will capture the country`s heritage.

VisionTo be a world class one stop printing house, providing quality, client value addingservices

Goals

Profits

Sales

revenue

Unit sales

Market share

Survival

Socialresponsibility Strategie

s

(i)

(ii)

(iii)

Low cost

Differentiation

Niche/focus

Basically an organization can employ the 3 mentioned above strategies. As Heritage we cantake on

strategy number one, Low Cost Leadership. This type of strategy will lead the organization to

follow

through by use of lowed prices emanating from low production cost, henceforth lowered prices

in the

market. An example can be that of companies like Printworks, who enjoy economies of scale.

Another strategy can be that of Differentiation. The organization can offer the market a various

range of service products. We can offer services like carton work, flexibles, blow molding

containers,

digital printing, and lithographic printing as well, origination as a separate department. Thoughthis I

admit can require huge amounts of capitalization for it to take place. Finally the organizationcan

Focus, or Niche a market. This may come in the form of newspapers like what we do (Patriot,

Mirror, Business connect and so on) or rather specifically focus of the WebPrint as our niche

market,

since we possess one of the best machines and skilled labour, when it comes to the WebPrint.

STRATEGIC MARKETING PLANNINING

It involves the allocation of resources to programs designed to achieve specific marketing and sales

objectives derived from the organization’s overall objectives. It is a process whereby an

organization

allocates marketing mix resources to reach its target markets.(a) Situationanalysis

Taking stock of where the firm or product line has been, where it is now or where it is likely toend

up in the future. Consider PESTELI factors. Currently the Political situation in Zimbabwe is kind

of

tense at the moment, but the recent introduction of ZIMASSET, by the government has

rejuvenated

fresh hope amongst the business community. The Economic environment is not friendly either.

With

this environment, it makes it more difficult for the sales and marketing team to venture and lose

any

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new business like what we did on MCAZ, and PRFT, as it will become even harder to find new

clients, since firms are finding it hard to operate in the harsh economic environment. On the

Technological front, new machinery is required to move with the current market trends.

Natprint,

Fidelity and Celsys recently acquired a new 6 color sheet-fed machine. Our machinery

particularly

sheet-fed printer will make it harder for us sales man to satisfy market needs as client

expectation

keeps on rising when it comes to quality and turnaround time.

Segmentation and targetmarketing

Market segmentation involves aggregating clients into groupsthat: (i)

(ii)

Have common needs

Will respond similarly to a marketingprogram.It will make marketing easier if we classify our clients into groups like Newspaper clients, Line

work

clients, and Full Colour printing clients and develop marketing programs that would suit each

and

every segment accordingly.

Target marketing will be done by selecting and prioritizing of segments to which they will

market.

Our main priority will be Newspapers since they bring in regular cash flow and can be easily

printed

by WebPrint. Line Work will follow on prioritization as it favors our current machinery in the form

of the Sheet-Fed printer. Lastly on our prioritization will be Full Colour Print work. Each segment

must have a unique marketing program that will serve it and satisfy every need.

Marketing mix program

After identifying specific marketing goals and identifying the target market the third step is todesign

the proper marketing mix- 7P’s which are Product, Price, Promotion, and Distribution. The other

three imply to the service we provide as Heritage Printing to our clients. These are Process,

Physical

evidence, and People.People-In a Printing services marketing framework, people are all directly or indirectly involvedin

the service encounter, namely the firm's contact sales men, personnel and other clients we

offer

services. Due to the inseparability of production and consumption for services which involves

the

simultaneous production and consumption of services, we depend heavily on the ability of

contact

employees to deliver the service.

Physical Evidence- The environment in which the service is assembled and in which the seller

and

client interact, combined with tangible commodities that facilitate selling of the service. The

physical

evidence of service includes all the tangible representations of service such as brochures,

letterhead,

Business cards, signage, internet presence and equipment like banners and a book rack at the

entrance

is vitally needed.

Process- At Heritage the procedures, mechanisms and flow of activities by which the service is

delivered is very important i.e. the service delivery and operating systems including turnaround

time

of quotations and delivery of products. All this and the above should be induced in the marketing

mix

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STRATEGIC SALES FORCE DECISIONS

These include organizing, building, leading and controlling the selling effort. However there are two

decisions in particular which have an important and transcending pervasive impact on these

sales

force issues and an organization’s sales management program.1.

2.

How the company will access its clients

The type of relationships the company wishes to have with its various clients.

MARKET ACCESS

There are several ways Heritage Printing can access the market.

(i)

(ii)

Direct sales force

Distributors- channel members who take title to the offering that they sell to

end

users-functions.

Printbrokers

Value added resellers (external agents)

Catalogue operations (placements in the

Newspapers)

Direct mail

Telemarketing

(iii)

(iv)

(v)

(vi)

(vii)

There is need to analyze customer base. Usually the 80/20 rate exists that is, 80% of the revenue is

generated from 20% of customers (few major accounts and many minor accounts), as the case of

ZPH, and Newspapers. As a result the following are the alternatives to direct sales force.Distributors- Warehousing, breaking bulk, extending credit, providing information andmarketing

the suppliers offer to their customers.

Telemarketing- Customer contacts utilizing telecommunication technology for personalselling

without direct face to face contact. To which we already do as the sales team.

Integration – this may include horizontally integrating with origination companies, or those who

don’t have the WebPrint for jobs they cannot print.

Independent Sales Agents – Not employees but independent business given exclusive contracts to

perform the selling function within specified geographic areas.

Take neither ownership nor physical possession of the goods.

Always compensated by commission.

Often used to develop new markets through a combination of persuasive selling skills

and

technical competence.Alliances - Alliances with other organizations in a joint venture to sell products to specificmarkets

for example conjoining with recognized printers like Sable Press, Lighthouse, and

Celsys for

outsourcing jobs.

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ACCOUNT RELATIONSHIP STRATEGY

Refers to the type of relationship a Heritage Printing intends to develop with clients. It may be

transactional or contractual. A different strategy may be practiced for each client; hence

selection of

the right client for the right type of relationship becomes strategic for both the customers and

the

suppliers of raw materials Transactionalrelationship

One in which the relationship is based on the need for a service of acceptable quality,competitively

priced and a relationship convenient for the buyer. Good transaction relationship involves

and

personal relationship between buyer and seller. Relationship based on trust, bargaining,

value and

meeting or exceeding customer expectations. This is the kind of relationship we have with

clients

such as Patriot, Mirror, and The Voice.BUDGETING PROCESS

goals.

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Compare actual expenditures with plans.

Estimate personal selling cost needed to reach salesRevise

expenditure

categories.

Request additional funds

as

needed.

Forecast sales.

Design marketing program.

Set Marketing and Selling expenditure levels.


ESTIMATED SALES DEPARTMENT BUDGET

Quarter Q1 Q2 Q3 Q4 TOTAL

SALES

Number of Clients 10

15

26

Average Sales perClient

$ 2,235.00

$ 80,000.00

$ 82,235.00T o tal N umbe r o f Sale

s$ 17,881.

00$ 400,000.0

0$ 417,881.

00

Ave r age Co s t P e rSale

$ 1,788.10

$ 26,666.68

$ 28,454.78GR O SS P R O FIT $ 1 6, 092.

9 0$ 29 3 , 3 3 3

. 28$ 3 09 , 426.1 8

O VER HEAD S

Promotional Activities andExibits

- $ 12,000.00

$ 12,000.00Postage and

Frieght- $ 50.0

0$ 50.0

0Fuel $ 2,400.00

$ 2,400.00

$ 4,800.00Telephone $ 1,800.0

0$ 1,200.0

0$ 3,000.0

0Marketing and Advertising - $ 20,000.00

$ 20,000.00Client Entertainment - $ 400.0

0$ 400.0

0Salaries andWages

n/a $ 23,396.00

$ 23,396.00Motor Vehicle

Expenses$ 600.0

0$ 500.0

0$ 1,100.0

0CorporateBranding

- $ 4,000.00

$ 4,000.00Sales Training and

Workshops- $ 1,000.0

0$ 1,000.0

0Research andDevelopment

- $ 2,000.00

$ 2,000.00Other

Overheads- $ 4,000.0

0$ 4,000.0

0

T O TAL O VER HEAD S $ 4,800.00

$ 70,946.00

$ 75,746.00

N ET P R O FIT $ 1 1 , 292. 9 0

$ 222, 3 87 .28

$ 23 3 , 680.1 8

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COMPETITOR ANALYSIS

5 forces ofcompetition

THREAT OF

NEW

ENTRANTS

SUPPLIER

POWERBUYER

POWERCOMPETITOR RIVALRY

THREAT OF

SUBSTITUTES

The 5 Forces Analysis assumes that there are five important forces that determine competitivepower

in the Printing Industry.1.

Supplier Power: Here you assess how easy it is for suppliers to drive up prices. This isdriven

by the number of suppliers of each key input, the uniqueness of their product e.g William

Over, their strength and control over you, the cost of switching from one to another,

and so

on. The fewer the supplier choices you have, and the more you need suppliers' help, the

more

powerful your suppliers are.

Buyer Power: Here you ask yourself how easy it is for buyers to drive prices down.Finding

more clients will reduce the buying power they have. We have ZPH, they yield so much

buying power because they are most probably the most reliable client we have. Currently

leaving them will see use experiencing high switching costs. Even our competitor have

their

reliable client under the 80/20 rule, switching them to come to Heritage Printing will mean

high costs for them, that is why it is hard for us salesmen to lure big clients with big

returns.

Basically if you deal with few, powerful buyers, then they are often be able to dictate

terms to

you.

Competitive Rivalry: What is important here is the number and capability of your

competitors. Currently the number of competitors is very high because the printing

industry

2.

3.

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Currently our competitors in the form of Printworks, Sable Press, Graphtec offerbetter

quality and lowered prices, suppliers and buyers will go there if they don't get a good

deal

from Heritage Printing. On the other hand, if no competitor can offer the kind of service

and

product we can do, then Heritage Printing can often have tremendous strength. So in

order to

outwit our competition, then we have to improve on 3 things, quality, pricing, and

innovativeness to offer a unique gem of a product.

Threat of Substitution: This is affected by the ability of our clients, current and potential to

find a different way of doing what you do. Potential clients may substitute our service and

product for e-books. If substitution is easy and substitution is viable, then this weakens

your

power, henceforth risk losing jobs too.

Threat of New Entry: Power is also affected by the ability of new companies and inparticular

Printbrokers to enter your market. Printbrokers, one room digital printers, and one colour

printers are our main threats, simply because they have little set up costs, or

need low

capitalization to start-up. At the moment we have few economies of scale in place, little

protection for your key technologies, and this is enabling new competitors to quickly

enter

the market we as salesman are supposed to take and it is weakening our position.

4.

5.

kmk

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LETS PRINT. ( A sales and marketing intern`s journey through the litho-printing service industry)

Marketing

Transcript of LETS PRINT. ( A sales and marketing intern`s journey through the litho-printing service industry)