Question

Founded in 1970 in Alençon (Orne), the company MPO Fenêtres (Menuiserie Plastique de l’Ouest) was one of the first French companies in the PVC/carpentry sector to offer a customized service. However, at that time, in France, very little was known about PVC, carpentry and double-glazing technology: these markets were still in their infancy. It took about ten years, and two oil crises (in 1974 and especially in 1979) for the PVC window market to really take off. The commercial policy of EDF (the French public energy provider) at that time favored the development of this product, encouraging investors to push for “all electric” installations, which would, according to the manufacturer provider, require better insulation of public buildings to reduce heat loss. With regard to marketing and distribution, the business is customer-oriented: therefore, MPO Fenêtres has chosen to keep control of the entire supply chain, right through from the order to delivery to (and sometimes installation for) the customer. For both new and replacement windows, MPO Fenêtres markets, designs, manufactures and installs its own products, thus ensuring complete control of the order and keeping to a minimum the number of contacts for the customer. The company distributes its products through two distribution channels: a central department in charge of “key accounts” and “communities”, and a network of eight agencies deployed in northeastern France, all owned by the company. These agencies are the cornerstone of the distribution network. Each agency employs fifteen salespersons, as the control of about 15% of its market area, and operates in a sales territory of approximately 45,000 customers. The company’s salespeople actively seek potential clients, especially at trade fairs and exhibitions. These events are of paramount importance: they afford opportunities to expand the client base and win new contracts. Up to 25% of the annual turnover of an agency can be attributed to contacts made during these events.

Today, the continuing strong growth of the market has encouraged MPO Fenêtres’s CEO to rethink the organizational model of its agencies. In order to improve performance and increase the commercial strength of the company, an audit of its business performance was conducted. Internal research within the company enabled the identification of tasks conducted by employees, and the time allocated to each task, over the course a year. The results are as follows. Each year, a salesperson has two weeks of training and five weeks of paid holidays (in accordance with employment law). Two weeks of their annual working time is devoted to attending trade fairs. In addition, the average salesperson is absent one week per year for personal reasons. In terms of the organization of their five-day working week, the Director observed that one day is devoted to purely administrative tasks (making appointments and reporting activities). For the remaining four days of the week, based on a working day of11 hours, one hour is devoted to the management of administrative problem sand urgent tasks, and one hour is taken as a lunch break. In terms of customer contacts, information obtained from sales staff showed that the average sale is concluded at the end of the third meeting, and that such meetings last on average about an hour. Convinced that high thermal performance PVC windows are the future of the company, the company’s directorate decided to develop sales of these as its primary strategic activity. It therefore needed to develop a marketing strategy for these products on the retail market. Some factors are key to the strategic approach needed: individuals are not necessarily aware of the technical features of the products. In addition, although they offer real benefits, triple-glazed products are more expensive. This may hinder sales of triple-glazed products, because many alternatives, which are cheaper and perform equally well, are still marketed, both in the company’s own catalogue and in those of its competitors. Although the triple-glazed products are better in terms of insulation and sophistication, their price may be an important deterrent.

Required:  

1. Identify the key factors for success from the passage

2. Suggest incentives to stimulate the staff to encourage their continued training and to support sales of the company product that will lead to competitive advantage

Explain briefly both answers

Answer 1

1.

1. Leadership. Capable people who are able to focus on the big picture while directing the small picture. They must neither be lost in the trenches; nor consumed with putting out fires; nor grinding their own axes. They must be there for the business, and able to guide in powerful and sensitive ways.
2. Strategic and tactical plans.Businesses do not succeed flying by the seat of their pants. We want to write and execute five plans to achieve success.
3. Powerful decisions. Realistic decisions that choose real goals and solve real problems are made clearly, and lead to prompt action.
4. Effective communications.Making the right decision is no good at all if the managers and workers are still doing the wrong thing!
5. Continuous quality improvement.Customer demands are always changing, and the competition is improving. If we don't get better, we will be left behind.
6. Efficient production. As business guru Peter Drucker once said, "It all comes down to work!"
7. Great marketing and customer service. Find your customers, bring them in, and delight them—or lose them forever!
8. Sales man effective training and give him a good working plan and gave him a good salary package.
9. Advertisement Like trade faires and exhibition. And it will helps in increasing customers
10. Customized service in new and replace product. It will help increase ccustomers.
11. Employees protection and create morale on employees it will ensure employee retension
12. Triple glazed products in cheap rate compared with other institutions it will leades to a competitive advantage.

2. Here are some good sales incentives to consider using when you need to boost motivation and increase profitability.

1. Paid Time Off

More often than not, your sales people give you more than 8 hours a day, 40 hours a week. They work nights and weekends to close deals, achieve their quotas, and bring in revenue. Offering paid time off when your sales people achieve a certain goal, whether it’s a half-day Friday, the chance to sleep in and come in at noon on a Monday, or a full day off, can really motivate. Your sales people will appreciate being able to have some extra time with their families and friends after all the time they put in at the office.

2. Prime Parking Spot

Good sales incentives can be practical, too. If your company is located in a busy area with limited parking, then your sales people probably dislike having to pay to park far away and walk to the office. Offering them a prime free parking spot for the week or the month can really boost motivation. Of course, this will only work if all of your sales people drive to work. Otherwise, it won’t inspire performance.

3. Scratch-Offs

Create scratch-off cards that accompany every closed deal. Since you’ll be giving a card for every win, the majority of your prizes will be inexpensive. However, make sure to have one big-ticket item like a flat-screen TV or tickets to an event. Every sales person will receive a prize for each order, but because there’s a big prize to be won, they’ll be motivated to keep closing sales left, right, and centre to get a chance at winning it.

4. Top 100 Reward           

With a top 100 reward, you offer your sales people a prize of your choosing for every hundredth order placed (or a realistic number that suits your sales process and its length). Alternatively, you can also offer a prize for every 100 cold calls made—even if they were all rejections.

5. Pizza Party

A tried-and-true sales incentive idea, the pizza party is an employee favourite. It doesn’t reward individually, but rather, as an entire team. It can motivate your team to work together, collaborate, push each other, and help each other in order to achieve the team goal that will reward them all with a pizza party. Plus, getting out of the office breaks up the routine, allows for socialization, and boosts employee morale. So it’s a win-win.

6. Monopoly Money

Use tokens or Monopoly money to reward employees for different actions and goals. Every goal should offer a different amount of money, with closed deals getting the most cash. At the end of the quarter, have several different gifts of different value that your sales people can redeem using their phony cash. They’ll work hard to get more fake cash to get the gifts they have their eye on.

7. Appreciation Jar

Have all of your employees write up inexpensive gift options or recognition ideas that they’d like, then put them all in an appreciation jar. Every time reps are recognized for something, have them pick an idea at random from the jar and follow through. Of course, make sure to review all ideas to ensure they’re feasible and realistic.

Thank you. I hope this answer is correct. And sorry for any mistakes are there. You can ask any doubt regarding this answer.