Good Morning

Drona Team Members.

Sales Planning
&
Control Process.
SPCP is a structured and standardized system for:
1. CVBU Channel Partners to help them achieve:
Increased internal efficiencies of the people and its
system
Lower and Active inventory levels
Higher productivity of working capital
Higher retail and market share
The Objective
SPCP is a structured and standardized system for
CVBU Sales Officers to help them
Have a window to the retail market being catered by
dealerships, enabling them
To objectively intervene at dealerships as per the need
only and thereby allowing them the flexibility of utilizing
their valuable time and resources, more productively for
Market-expansion and Competition Customer-
Conversion.
The Objective
SPCP is a structured and standardized system for
CVBU Sales Officers to help them
Do timely retail predictions, enabling them
Timely revision of action plans with respect to the
target
Better planning of billing to dealers thereby avoiding
specific model shortages and optimizing Dealer
Working Capital .
The Objective
SPCP is a structured and standardized system for
CVBU Sales Officers to help them
Do better planning for RSO intakes, enabling
Low and active RSO stocks
Reduced model shortages and RSO to RSO
movements.
The Objective
In short, SPCP is
A way of working for our Dealerships
And a tool for Tata Motors Sales officers to
monitor, review, control and improve the
performance of Dealerships and logistics.

The Objective
Area off-take
target
Dealer wise off-
take target
Dealer wise retail
target setting
Confidence?
Key Action Plan
for bridging Gap
Daily/Weekly
Control
Dealer stock:2
weeks
Sufficiency
Productivity
Efficiency
VMS
Booklets
IT Package
Market share
Target
Current month
forecast
Process Frame :
Pipeline as on 1st day of
Retail month
Gap
Potential of dealer
territory
Target Setting
Retail Process
Retail Process
.
The SPCP incorporates the DMAIC model as elaborated
below:
Step 1: Define/Create pipeline
Step 2: Measure pipeline (Control measures)
Step3: Analyze pipeline (Designing pipeline with respect to target)
Step4: Improve pipeline (Key action plan for all four stages with
respect to target)
Step5: Control pipeline ( Monitor and review through prediction &
potential)
C0/C3 in pipeline : Are those C0s or C3s from the
bucket, who have been contacted.
C1 : A customer who has taken pro forma
invoice/quotation
The Retail Process
Define / Create Pipeline
Pipeline & Customer Data
Base
C0
C0 C0 C0 C0 C0
C0
C0 C0 C0 C0 C0
C0
C0 C0 C0 C0 C0
C3 C3
C3
C3
C3 C3 C3
C3
C0/C3 CO/C3 C1 C1 C1 C1 C2 C2 C2 C3 C3
CO/C3 CO/C3 C1 C1 C1 C1 C2 C2 C2 C3 C3
CDB
Bucket

C2 : A customer who has decided on a model and has
given some financial commitment such as token
advance or L.O.I. from financier.
C3 in pipeline : A customer who has taken delivery of our
vehicle in the current retail month.
The Retail Process
Define / Create
Pipeline

Pipeline & Customer Data
Base
So, total CDB = C0s in bucket + C3 in
bucket+C0/C3 in pipeline+C1+ C2+ C3s in
pipeline
Market Coverage Plan Sample F006
FOO6 has been designed to help a sales person in planning his visits,Keeping track of
customer movement through different stages apart from providing ready reference oa a
customer in terms of his telephone nos., starting category, model he is interested in and
the location he is based at.
Example; For Pipeline Status on Dealer
Retail Closing Date (DRCD)


A process aims at establishing the rule of measurement to do
away with gut feeling in deriving a solution.Since Skill, Time
and Loss of conversion between any two consecutive
customer stages are vital parameters, we need to eliminate
any subjectivity and ambiguity in their evaluation and
therefore the following Control Measures have been
designed.
Target-30
The Retail Process
Measure Pipeline
C0/C3
100
C1
67
C2
3
C3
30
Measurement of Skill of
conversion : Four Control
Measures
The Retail Process
Measure Pipeline





Direct Control Measures: These are derived ones and
are used for retail prediction.
The Retail Process
Measure Pipeline
C0/C3
100
C1
67
C2
3
C3
30
90.9%
33
%
50%
C1 to C3 Conversion factor : C3 / (C1+C2+C3) =30/100
=30%
Or (CF C0-C1) X (CF C1-C2) X (CF C2-
C3)
C0 to C3 Conversion factor: C3 / [C3+C2+C1+(C0/C3)] =
15%
Or (CF C1-C2) X (CF C2-
C3)
15%
30
%
Step 3 : Analyze / Design Pipeline:After measuring, one
needs to know the required number of customers in different
stages of pipe line, in order to achieve the retail target.The
figure below indicates the flow path of the customers through 4
stages :
The Retail Process
Analyse / Design Pipeline
Here, we define :C1*- as the minimum no of C1s required to meet the current months
retail target & C0*/C3* as the minimum no of C0s & C3s required to be contacted for
achieving C1*

C0
C0 C0 C0 C3
C0
C0 C0 C0 C3
C0
C0 C0 C0 C3
C3 C3
C3
C3
C3 C3 C3
C3
C3
C3
C3
C3
C3
C3
C2 C1
C3
(Target
)
C3
C3
C3
CDB Bucket
(C0/C3)
For a retail target of 50,the following
example illustrates the calculation of
Designed control elements. Let us
take the previous pipeline with its
conversion factors

The Retail Process
Analyse / Design Pipeline


C3
0
C2
3
C1
67
C0/C3
53
30%
50%
91%
3 x 0.91 +(C1*) x 0.3 = 50
C1* =158,
The gap =C1*-C1= 158-67= 91
Target = 50

C0*/C3*
=182
0.5
SO, 182- 53 =129 NEW CUSTOMERS (I.e. the
customers who are not in the pipeline) &
a total of 252 CUSTOMERS (129+53+67+3) need
to be covered during this month.
The Retail Process
Analyse / Design Pipeline
* It can be taken from VMS or pink booklets and can be calculated as:
Total Visits by the dealership

Total customer coverage by the dealership



Calculation of Visit/Day requirement:Total CUSTOMER COVERAGE
required by dealership=252 Visits/customer required in a month = 4 (From
past months figures*) So, Total visits required = 252 X 4 = 1008 For 25
working days in a month, Visits/Day required by Dealership= 1008 / 25 =
41. There are 5 sales executives in the Dealership, Avg Visits/day/SE = 41
/ 5 = 9.
The Retail Process
Analyse / Design Pipeline
Imp.Note: Coverage of all 129 new customers shall be completed in the
first 10/12 working days from DRCD. This is because of the Time of
Conversion required for converting customers from C0 to C1 to C2 to C3.
Step 4: Improve Pipeline
After completing Design stage, we have two informations:
i. Pipe-line status as on 1st day after DRCD(I.e. after filtering)
ii.Designed Pipe-line(Refer DPS-01)
Now the next logical step for DAM is to address the gap between two
pipelines through relevant Sales & Marketing activities using Key Action
Plan Format KAP01. This exercise shall preferably be done along with
Dealer Sales In-charge.
The Retail Process
Improve Pipeline
A B C D E F
3 Tele-marketing 5 27 Mr.P 15.12.01
To focus on FMCG distributers.
segment.60 Tele-calls per day. 3
(C0/C3) to be generated per day
5.12.01
(5th day after DRCD)
By When Strategy
(Monitorable Parameters)
Follow up with concerned financiers for
faster release of DO
4 2 30 Mr.Z Demo of FES 407
5.12.01
(5th day after
DRCD)
Key Action Plan (KAP01) Target :50
C2 =3 3 3
Mr.X
Sl.No What To Do
5
1
By Whom Expected Retail
(C3)
Current month
Location x & y.with 25 nos. of
customer coverage at each location.
2 C1=67
19
22
Mr. Y
55
DAM( Sign.) DSM(Sign.)
7
The Retail Process
Improve Pipeline
1.The format here is essentially a Kaizen format, where each column has a
discrete purpose such as:
What to do(Column B) -List of Sales & marketing activities corresponding to
prompts in DPS01 as well as till the cumulative expected
retail reaches 10% more than the target.
Exp. Retail(Column C) -This is essentially to focus that each activity is a cost to
Dealership or Tata Engg. Or both.One must therefore, try to
assess the effectiveness of the activity
By Whom(Column D) -The person who will ensure the execution on time.Two
names shall be discouraged.
By When(Column E) -Essentially to make sure that all activities,primarily related
to:
C0 to C1 : Shall be completed by 10
th
/ 12
th
day from DRCD
C1 to C2 : Shall be completed by 18
th
day from DRCD
C2 to C3 : Shall be completed by 22
nd
day from DRCD
The Retail Process
Improve Pipeline
C0/C3 to C1(Prospect knowledge & selection of Prospect skills)
a) Availability of exhaustive Customer Data Base
b) Selection of Quality C0s for the pipeline.
The following would help:
Customer segmentation across territory.
Knowledge of customer buying behavior.
Knowledge of environment, e.g. Upcoming industry,opinion
leaders,freight rates etc..
c) Quality of C0 coverage through a well designed market
Coverage plan.
d) Meeting customers, understanding their application needs&
suggesting viable product type.
e) Ensuring re-buys & spread good word of mouth through customer
retention skills, such as : During and after sales
Care, concern & importance to the customer
Performance follow-up of the product
The Retail Process
Improve Pipeline
Tips for conversion factor improvement:
C1 to C2 (Product knowledge & selling skills)
a) Availability of Sales kit and driving experience of vehicles.
b) Qualifying C1s in terms of C1A & C1B(A: buy in this month,B:
buy in next month)
c) Pitching right product.
d) Technical clarifications in terms of
Identified customers application needs
5 good points of our product & 5 negative points of
comparable competitor product.
e) Discussing comparative economics: operating & life cycle
f) Offering financing options.
g)Selling value added services,e.g.AMC.
The Retail Process
Improve Pipeline
C2 to C3(Deal closing skills)
a) Negotiating release of delivery note with financiers
b) Managing DWC and vehicle inventory.
Following marketing activities can be included in KAP-01
Mailers
Telemarketing-
Paper Advertisement
Road Show
Referral coupons
Free Service
Campaign
Tie up with mechanics
Segment wise market
coverage

Local media
advertisements
Stickers on serviced
vehicles.
Tie up with spare parts distributors.
Vehicle Demo.
Loan Mela.
Exchange Mela
Testimonials from satisfied customers.
Tie up with body builders
Various financial schemes:
Between dealers & financiers
Between TML Dealers &financiers
Customer meet.
Financier Meet.

The Retail Process
Improve Pipeline
Step 5: Control Pipeline
After having planned KAP01, the aggregated results of its
execution in terms of retail, need to be reviewed weekly in order
to make necessary corrections, if required, in KAP01.
This is done by checking the potential of the retail pipe line and
predicting the retail.
Prediction = Potential with TOC (Time of Conversion), as we
work on monthly basis.
The Retail Process
Control Pipeline





The Retail Process
Control Pipeline
Also Since conversion factors are function of time, fixed Dealer Retail
Closing Date is prerequisite for accurate prediction.
Two Control Measures:

a) C1*-C1= 0 by about 14
th
day after DRCD
b) C2 X (CF,C2 to C3)+C3= Target by 25
th
day after DRCD

Imp Note: These give us two additional monitoring points
during the retail month.
Prediction acts as a feedback signal allowing us to modulate
inputs as per the requirement well in time.In other words,it
makes the system closed loop as shown below:
The Retail Process
Control Pipeline


Out Put
(Retail)
Pipe Flow
KAP01 Execution
DPS-01 Follow-up
VMS Follow-up
In Puts
System
Prediction
Feedback
1. CC/Tgt
2. Loss%
3. C0-C1, CF
4. (C1*-C1) Gap
5. C1-C2, CF
6. C2 X (CF, C2-
C3)+C3=Tgt
7. C2-C3,CF
Key
A
c
t
I
o
n
Pla
n
1. Retail Prediction: Using conversion ratios, monthly retail can be
predicted on any given day as explained.
2. Managing stocks & logistics:
3. Tool for performance comparison using control measures
Dealership CEO can compare the performance of different
branches (or Dealer Sales Managers) under him for corrective
intervention.
Dealer sales Manager can do the same for the sales executives
under him.
Area Managers can do the same to his TSMs.
Regional Manager can do the same to his AMs.

Important Applications:
SHQ RM AM/RSM TSM
Dealer Sales
Manager
Dealer Sales
Executive
Presently through E-mail/Fax
Finally through CRM package
Booklets
Pink
Booklet
Blue
Booklet
Yellow
Booklet
Information flow and monitoring Tools:
1. Booklets: Booklets are designed for planning market coverage, monitoring customer progress in
different stages(pipe flow),recording results of sales activities conducted & performance review
through control measures.
These booklets have been standardized for uniformity in use(refer annexure)
Pink : For Sales Executive
Blue : For Dealer Sales In-charge
Yellow : For TSM
VMS
Thank You