Sunteți pe pagina 1din 16

Institute of

Business
Management
Sales management Report
Company: Hilal Confectionary private
limited

Submitted to : Sir Saeed Ur Rehman


Submitted by : Yosma Mirza
Iqra Asif
Kinza Salman
Sarim Najeeb

Abdul Basit Malik

Acknowledgement
All praise and thanks be to Allah (SWT) by whose mercy
and blessings we had the strength, knowledge, insight
and opportunity to complete this report successfully.
We also seek the pleasure of thanking you for
encouraging us by showing your faith in our capabilities
while handing us this learning opportunity.
While making this report we learnt a lot about the
practicality of business in the real world which made our
concepts more clear and strong. As a group we have tried
our level best to cover all the targeted aspects
concerning our organization.
If you have any queries regarding the report or subject,
you may contact us for further assistance.

Introduction of the
company
Hilal established in 1952 is Pakistans No. 1 confectionery
and cake manufacturers with its products exported to
over 20 countries around the world. Their vision
statement is to become a global food leader by spreading
smiles through diversified halal products. Their core
values are teamwork, Quality, Innovation, Integrity,
Respect People and Development.
Hilal has constantly strived to upgrade its products and
systems through innovation. They are the pioneers of
center filled candies, chewing gums and cup cakes in
Pakistan. Their research methodology relies on in depth
local and international market surveys. Every batch of
confectionery is checked by the expert staff using the
most modern equipment and superior technology to
ensure consistent quality and taste throughout Pakistan
and abroad. Through market surveys, they see the
response to sample products and also gain insight in the
changing market trends. Market knowledge and customer
relationships give them an edge over their competitors.
They have an extensive portfolio of brands and their
major competitors are candyland and B.P sweets.
Candyland has a 21% market share, whereas B.P sweets
has 13% and hilal has 26% of the market share.

Product line
Chocolates
Wafers
Candies
Bubble Gums
Jellies
Powder Drink
Bakery
Chew toffees
Pan Masala
Chew Gums

Cakes

Sales hierarchy
General Sales
Manager

Sales
manager
North

Sales
manager
South

Regional
Sales
manager

Regional
Sales
manager

City Controller

City Controller

Area Sales
manager

Area Sales
manager

Territory Sales
manager

Territory Sales
manager

Sales Forecasting
Methods
The Hilal company uses the following methods to forecast
their sales:

Quantitative Method
Time Series Analysis
Hilal company uses this particular method to forecast
their sales as it is best used for long-term company
forecasts and industry sales projections. By using this
method, they predict future values based on
previously observed values. A time data series is
determined by four elements of sales variations:
Long-run changes (T)
Cyclical changes (C)
Seasonal variations (S)
Unexpected Factors (I)

Qualitative Method
Survey of Buyers Intention
The Survey of Buyers' Intentions method is ideally suited
for short and medium-term sales forecasts for marketing
organisations. The results can be fairly accurate and
realistic.
Another method this company uses to forecast their sales
is the Survey of Buyers Intentions. By using this method,
they are able to well-define the potential buyers who are
also very limited in number. Random surveys are
conducted to record the responses of various customers
at different places.
Even though this method helps the sales people to better
understand the needs of the potential customers, this
approach has several limitations. The most obvious is
that the customers do not always do what they say they
plan to do. Second, the respondents to such a survey may
deliberately overestimate their future needs so as to
assure a continued flow of supplies or materials. The
buying trends of the customers rapidly changes due to
some major changes in the operational environment.

Sales Forecasting
Procedures
Following are the procedures used by Hilal to predict the
future sales:

1. Estimating Industry Sales


One typical approach is to predict sales by researching
the size of the market for the product or service and then
estimate what sales will be assuming the business gets
some small percentage of that market. The development
of industry forecasts is related to the size of the firm.
Smaller firms are apparently less concerned with or less
able to develop such forecasts.
Some of the estimates are based upon the relationship
between industry sales and a national economic indicator
such as GDP or national income. Hilal has got a corporate
economist who provides support and information for sales
forecasting.
Their economist is charged with and communicating
information about worldwide economic conditions and
recommending corporate reactions to these conditions.
Later, this information is communicated to managers at

alllevels within the corporation so that they can make


accurate predictions regarding their sales.

2. Projecting Company &


Product Sales
Hilal determines how much sales the whole company had
achieved in the past year via sales records, yearly
reports, etc. It then goes on to breaking down these total
sales into the sales of each product individually. Upon
having the sales of each product with them, then, on the
basis of mathematics, they quantitatively figure out how
much sales the company will do the following year.
Similarly, by the opinions and judgements of the sales
management, they qualitatively forecast each products
sales for the following year. Once they have acquired
each products sales separately, they go on to calculate
the total company sales forecasts for the following year.

Sales Forecasting
Market Potential:
Hilal is part of the confectionary industry, which has a
total market potential of Rs. 500 million.

Sales Potential:
The sales potential of Hilal alone as a company of the
confectionary industry is Rs. 130 million.

Market Share:
Hilal enjoys a market share of about 26% in total of the
confectionary industry, with the only potential threat
being Candyland, having a market share of 21%, which is
very close to that of Hilals.

Sales Forecasting
Hilal forecasts its main sales on an annual basis. They
predict the following years performance based on their
sales of the previous year. This is part of their long-term
forecasting. They follow this long-term method on their
total company sales, as well as product by product sales,
in order to determine which product is selling most, and
which is selling least. They call this the prioritizing
method, where they give highest priority to their most
selling product and least priority to least selling products.
Sometimes, they even discontinue products if that
product is their least selling product for three consecutive
years, as they believe that it is only causing loss and no
profit.

Hilal does its short-term forecasting on a monthly basis.


Though, on a monthly basis, they focus mostly on product
by product basis and very merely on total company sales.
They look at previous years monthly sales of each

product, and set a little higher than that forecast for the
following year. For example, if January sales of Ding Dong
in 2014 were 20,000 units, in 2015 it will be predicted to
sell 20,500 units. Also, increase in prices will be
considered and sales forecasts will be made according to
the budgets provided to the forecasting team.

Critical Analysis and


Recommendations
Hilal is a company at its growth stage, as it is coming up
with many new items and in different product lines, but
some of its products have reached maturity, and may
soon fall into the decline category. One product of such
characteristic is the Hilal Cupkake, but Hilal has not yet
discontinued it.
On the other hand, their revamping the Hilal Kake with
better innovation and a better approach to the market
was a very good decision by their sales and marketing
department, and it is doing well in the market now.
The best product in the market that Hilal is manufacturing
at present is their Ding Dong bubblegum. In reality,
people are aware of Hilal as a brand because of the Ding

Dong bubblegum, and it contributes to most of the


company sales too.
Hilal is in close competition with the Candyland
manufacturers, as both companies provide almost the
same product lines and the same kind of products in the
market.
The only disadvantage that the Hilal company has is that
they at first do not set a proper target market and they
introduce products to everyone at the same time.
Whereas, they should first set a perfect target market for
their product, and then they should go on to launch it for
the general public once they have gained the attention of
their target market.

HILAL PRODUCTS

Conclusion
Hilal is doing great in the market presently, but it has a
close competition by Candyland, and if they do not
improve their products, market and strategies, they might
lag behind.
Hilal should firstly innovate their present products, then
find new markets for their existing products, along with
manufacturing and introducing new products to their
present markets, and then go on to catering new markets
with new products. This way, not only will Hilal be able to
increase its own sales, but it may also lead the industry
with a higher market share than present, and be able to
knockout its competitors.