June 30, 2016

Strategy on how to increase sales

BE a BIDDA: "BELIEVE, INSPIRE, DREAM, DO ACHIEVE"


O    :    All CMO Marketing Staff

Subject:   Generic Strategy for Increasing Sales

We discussed today marketing and the problem of low sales in your SBU.  All that we could mention as causes are:

       1.  Hindi po tapos ang development;
       2.  Wala pa pong promos;  naghihintay ang customers/prospects ng promo/ low d/p.

      3.  Kulang kami ng tao;
      4.  Kulang kami ng gamit;  
      and so many other alibis.

We found out, that entrepreneurial marketing in the communications site is not even read by the staff;  in the CSS presentation, most of presentations were copy paste (it is a crime) and we lack the knowledge on strategies on how to increase sales...

From Kenichi Ohmae, mind of the strategies, there is a long list of generic strategies on what you we can do to increase sales.

1.  Starting point:

      Sales
      -Cost
    GP

     1.  Our goal is to increase sales always and reduce cost
     2.  A simple +5% increase in SP, and -5% decrease in cost can result in dramatic increase in profitability.  Thus it pays to be frugal and thrifty.   Also, reduction in cost is a reverse marketing;    You do not need to sell more for the amount you saved.  Customers always want value for their money and thus want discounts and reduced prices.

        Say:                              5% increase in SP, 5% decrease in CGS

        SP    -     100                105
        CGS         80                  75
        GP            20                  30

        GP is up to 30 or 50% with mere +5% and -5% cost.

2.   Increasing sales:

     1.  Increase in selling  prices -   to be pegged to inflation rate.  Customers will understand that the cost of inputs:  labor, gas, utilities go up.

     2.  Increase in the number of units sold:

          1.  Increase in market coverage - selling more in unserved territories or catchment area.   eg putting up more outlets and branches

          2.  Increase in sales force (sellers and channels)

               on line sales
               wholesalers
               resellers

         3.  Increase in the number of product offerings:

              variants  -  sizes, sache
              new products by r & d and innovation
              Innovation new features can add to 2.1

        4.  Additional expenditures for marketing

            ads and promos  (discounts, coupons and POS display)
            commissions
            events
            prizes for sellers

       5.  Market segmentation

            New product for a particular segment

    3.  Increasing value added for the product:

          new uses for the product (based on how the customer use the product) 
          e.g Listerine used to be a product to treat athletes foot of combatants.  After the war, the Listerine people marketed Listerine as mouthwash.   As Betadine,  which was before and antiseptic was remarketed as feminine wash

         adding features for the product:  (as 2 in 1)

             CP with wifi, blue tooth, talk and text and tv
             ref with ice maker

Think of these strategy on how you can apply this to your sbu

1 comment:

  1. Acknowledge on your post Sir!
    We will sell more and reduce our cost of expenses.

    Rocel CariƱo
    HGLUMP

    ReplyDelete

1. One of our beliefs is learning. It pays that you learn more to do more Just to survive you have to learn how forage in a forest or raise your food, catch prey

2. In order to discharge your job well, you have to learn your admin plan the process flow and standards.

3. To keep up with changes, you have to learn and read. There is no other way

4. signify that you have read by putting your name on this comment box. Every staff must: post the name on this comment box, or like, agree/will do. Your registering on this comment box is being graded under communication. Observe RRURAC: Read, Reflect, Understand, Realize (apply to reality) Apply, and Check (if it works)
You need to make __comments a month to qualify for promotion under our CCD

Read the posts on this site every AM talk. Many problems arise simply because people do not know what to do, because they did not read this site

We are making sure that you improve yourself, engage yourself in self improvement through this site...






Note: Only a member of this blog may post a comment.