Download - Retail Sales Technique
A NEW WAY FORWARD!!!!
SALES STRATEGY OF DISH CENTRAL KITCHEN
Presented by:Anshul Agarwal-01
Ashish Bansal-03Aditi Bihani-05
Vikram Bothra-06Molshree Gattani-11
Rahul Goyal-12Vandana Jalan-14
Anuj Karwa-15Rahul Rathi-21
Gaurav Surana-30
2,000 to 20,000-How to achieve???
Let us see how Dish central can Achieve it……………
BON APPETITE!!!!!
Catering is not only about appealing to the taste buds of the individual but also to all the other five senses of a human being
With the right atmosphere, it is possible to appeal to all of these senses making the occasion unforgettable
Of course, beautifully prepared food can alone do this, but now-a- days, caterers want to reach out to the customers in all possible ways and bowl them over.• The venue • The menu • The décor
Whatever may be the occasion; a bachelor’s party or the annual meeting of a corporate; deeply satisfying the guests is the sole aim
Catering Industry- Overview The catering industry is a staggering $5 bn with
around 10,000 companies operating but no companies dominate
It is highly fragmented: top 50 companies account for less than 15% of industry revenue
Demand is driven by corporate profits & consumer income
The industry is labor-intensive: average annual revenue per worker for a typical company is just over $40,000
Major services include: On-premises catering: meals prepared, re-cooked & served at the customer’s location Off-premises catering: food prepared away from the premises where it’s served (in a
central kitchen)
Off-site catering represents 45% whereas On-site catering enjoys 40% of the market. The remaining services include alcohol sales & facility rentals
( Source: www.hoovers.com)
CATERING INDUSTRY…CONTD…
Worldwide big players in this segment are Centerplate, Compass Group USA, Wolfgang Puck catering, Sodexo USA, etc.
The profitability of individual companies depends on cost controls and effective marketing
Large companies have advantages in offering expanded services such as facilities management, room rental, and entertainment
But small companies can compete effectively by serving small groups and offering personalized service
INDIAN CATERING INDUSTRY
Catering industry in India is worth about Rs 50,000 crore and is growing at more than 20 per cent annually
Food catering industry in India is dominated by more of unorganized players
National, Regional & Local players are present in the level-playing field
Organized players form a very insignificant part- around 3%
INDIAN CATERING INDUSTRY..Contd…
Players like RKHS, Shivas Hoteliers & Caterers, Mars Hospitality Group have a stronghold in the unorganized sector
But due to the dynamic nature of the industry, big MNC players gobble up the local players & thereby create economies of scale- RKHS being acquired by Sodexo Inc.
DISH CENTRAL KITCHEN A Wadhwan Holdings Group company
specialized in food catering industry It has a world-class dedicated central kitchen in
Andheri(E),Mumbai A kitchen that spans over 16,000 sq.ft., and is
capable of churning out 20,000 meals per day A professional team comprising of top brass
chefs, and a team of nutritionists An R&D kitchen for conceptualizing new recipes
that tantalize the taste buds while adhering strictly to nutritional standards
A fully equipped testing lab with a dedicated microbiologist and hygiene specialist
They have been awarded HACCP certification & ISO 22000 quality certification
MODEL OF DISH CENTRAL KITCHEN
OFFERINGS
• Dish Central offers: Regular offerings-
Breakfast/Lunch/Dinner Executive meals for Senior Management Outdoor Catering Corporate gifting/Festive Orders Confectionaries Food Fests Customized banquets- special orders Shape Cakes & Cookies
Target Groups
• Corporate and organizations– Diamond market BKC– BPOs– KPOs– Govt. Offices– Corporate Headquarters (BKC, Nariman
Point etc)• Day Boarding Schools• Airlines• Hospitals• Restaurants & Coffee Shops
– Local Bakeries (CCD- strategic customer)
Customer Classification
SWOT ANALYSIS
SALES & MARKETING STRATEGIES
THE “AIDAS” PERSPECTIVE
Securing AttentionThe company can promote its offerings
through:• Corporate Parties/ events/ gathering• Outdoor catering : Wedding, Festivals, New
year parties, Ring ceremonies, Birthday Parties
• College / School Fests• Food Festivals & Trade Fairs• Clubs & Associations• Tie ups with Banquet Halls & food facility
providers
Securing Attention
Spread awareness- If you differentiate you need to make your customers aware
Outdoor catering Food Fests Direct Mailers Communicate about their
certifications and standards. Own Website of Central Kitchen and
online catering to customers
Corporate and Organizations Client Counselling- one to one selling Telecommunication Corporate Parties Trade Fairs and seminars Direct Mailers
Day Boarding Schools
9 to 7 Schools which provide day meals to the students
Tie-ups with such institutions to cater to the students
Spread awareness in school fests and events
Hospitals
The administration staff and the patients
A general customized menu for patients to provide them hygienic and nutritious food
Tie-ups with various hospitals for catering
Special attention to calorie level & nutrition-level of the food
Creating Interest/ Kindling Desire• Offering a visit to Central Kitchen• Customized offerings• Spot offerings at events / fairs• Promotional parties by DHPL• Regular Follow ups• Extensive work on sales lead• Regular communication about new
developments and products & offerings
Inducing Action
Negotiation Deal finalization Closing of sales lead References Start Serving !!!
Building Satisfaction
Continuous feedbacks Improvisation :Designing special
recipes as per customer demands if possible
Theories of Selling
Right set of circumstances“Everything was right for that sale” – Can target schools and colleges because induced buying.
It drives the customers to buy. The salesperson can drive the customers to
buy. e.g.The company official should make the
students aware of “healthy living” and nutritious food and thus telling them about central kitchen and its offerings. Also communicating about their hygiene standards by organizing kitchen tours
Buying Formula The need is there but the buyer is not
sure that he should buy or not…he is contemplating..so the salesman should be good enough to turn the prospective buyer into an actual buyer.
Cash-can be done at the point of sale..as in case of colleges ,day boarding schools, hospitals where the buyer is not sure of the purchase of the product.
Credit- in case of corporates who are looking for caterers but are confused about whom to pick among the many options or the white-gloves service
Buying Formula: understanding need/problems for existing: Their needs should be
understood and met with.(can be done through constant feedback)
For potential customers: give them the best offerings based on the information provided by them.
Should have wide variety in the offerings provided by the kitchen.
Buying Formula: Product/Services
one stop solution for the buyers(right from meals to snacks to beverages)
Should be in constant touch with the client and any complaints regarding the offering should be adhered to.
Buying Formula: Purchase and Satisfaction
Drives: Innate drives: Provide variety in the offerings to satisfy
the innate drives Learned Drives: With the help of state-of- art R&D, new
and better offerings should be made available to the clients to maintain their interest and satisfy the learned drives.
Cues: Product Cues: The meals should look attractive to eat
and also they can harp on the “Hygienic Attribute” of the meals
Information Cues: Increasing Visibility: through attractive advertisements ,direct mailers and website.
Response: At the slightest hint of a negative response from the customer the offerings should be changed in a way that the customer finds it difficult to refuse.
Behavioral Equation
Prospecting
Prospect definitions: Customers with bulk order requirements
Searching out potential accounts: By doing a survey of the market, narrowing down on the prospective customers
Qualifying prospects and determining probable requirements: By interacting with the customers and finding their needs. Helps in further zeroing down on prospective customers
Relating company products to each prospect’s requirement: Customizing the meals as per the prospective customers.
Sales Resistance Obstacles to sales :
Financial Obstacle: if the client budget does not permit him to take the deal you can offer him some discounts based on the order size.
Fixed Mindsets: Prospective customers are too reluctant to change the caterer.
Sales objections Unattractive “Menu”: not providing enough
variety in the menu Not Value for Money food: the customers does
not feel that the offerings is worth the money paid.
Recommendation: the salesperson should be tactical to handle any such situation.
Closing Sales
Low pressure sales: Intrinsic Customers High pressure sales: Extrinsic and
strategic value customers. The salesperson leads the customer to close the sale.
B-MODEL OF DISH CENTRAL
Target Groups Captured For Analysis Corporate Hospital Schools Colleges Production Houses Parties
Corporate Banquet Hall
Price Offering (Rs. Per meal)
Targetting Approx 500 members in a company as a wholeWherein corporate house being 50% - 55% of CK’s target
Targeting 5 Hospitals with an average customer base of 500Low Calorie Food will be served to the patients
Targeting approx 7 Colleges with 250 daily Consumers setting up a sort of canteen where in confectionary items can also be looked upon.Day Boarding School will also be an approach where food is provided by the institute itself.
150 people per production house targetting 5 production house as a whole
Catering Type D and having 4 parties each per SundayTie-Up with Banquets Credit Site
FINANCIAL MODEL
SALES FORECASTING
Forecasting: specific product & target
Why forecast sales? Compare proposed changes to current
results Help set budgets Provide basis for monitoring results Aid in production planning
Considerations in forecasting
Customer behavior (past & future) Competitors’ behavior (past &
future) Environmental trends Product strategies
Customer behavior (future) More and more extrinsic customer are
converted into intrinsic customer As Brand Awareness increases the Brand
loyalty will also increase Availing to choose the full Menu online make
the process faster with better forecast Giving Access with client wise classification
on website helps customer to be more informed about the products they are looking
Providing menu templates for different occasions speed up the process
On line chat interface for better service (also helps in getting feed back )
Creating a image as health conscious and environmental conscious caterer
Competitors’ behavior (future) The main competitors are unorganized
caterers like Radhakrishna , Shiv Sagar caterers
They can also go for HACCP certification and ISO 22000 certification
Tendency of price war to generate high competition
Also there will be more stiff competition in terms of client acquisition
Finding a new USP will be a key aspect for the future market.
Environmental trends
Changing FDA norms should be considered New measures of consumption of fuels Adhering to the norms of department of
environment government of India Perusing to get clean environment
certification from local and international authorities
Preparing food according to seasonal changes
Finding new roots for transportation with better efficiencies
Product strategies
Developing food with high nutritious value (in the R&D center) and making that a USP
Creating a cross selling strategy by bundling of product offering (Combos)
Creating schemes like product of the day
Methods of forecasting
Judgment based Sales extrapolation Customer based Model based
Judgment-based forecasting: qualitative
Jury of expert opinion (most common) Naïve extrapolation / opinion (2nd most
common) Sales force composite (3rd most common)
Sales extrapolation: quantitative
Assumes future will follow on past Moving average (most common quantitative
method) Average of three period sales over time Average of change in three period sales over time
Exponential smoothing Alternative method to smooth data
Regression analysis Forecast sales = a intercept + b slope
(time)
Customer-based forecasting methods
Does not assume future will follow on past
Market testing Market surveys Can be fed into forecasting model
Model-based forecasting methods
Regression with other factors Sales = a intercept + b (advertising) + c
(price) Develop model on half of past data Test model on other half of data `
Forecasting products with new features Show basic product
Ask what they would pay This price may be arbitrary
Add feature: e.g., An added dish Ask what they would pay Follow-up prices are coherent
Add another feature: e.g., An added drink Ask what they would pay
Add another feature: e.g., An added dessert Ask what they would pay
Add another feature: e.g., Another customized product Ask what they would pay
SALES & OPERATIONS JDs
Organizational Chart of DCK
Sales Team
The most important team for a venture like Central Kitchen where our primary aim is to increase sales
They are the boundary spanners i.e. representatives of the company to the clients
Responsible for all selling activities and getting new orders for the company
Integral to increasing the sales
Operations Team Continuous improvement on the basis of the feedback
brought in by the sales personnel and the review of the sales manager
Seek Continuous Improvement by- Maintaining and improving kitchen standards and food
quality Deploying advanced quality control techniques to ensure
the quality of food is always good Work in tandem with the sales and logistics department to
implement the continuous improvement policy The well equipped in-house R&D team should come out
with innovative and delicious recipes to keep the taste buds satisfied
Smooth flow of kitchen functions Appointment of well trained kitchen staff and good shefs
Logistics Team
Inbound Logistics- Should ensure timely availability of raw materials, in proper quantity at the right place so that the kitchen is enabled to fulfill all orders and while doing so ensure that there is minimal waste Co-ordinate with the sales forecasting team and
order the right quantities at the right time Ensure proper storage and warehousing Minimize waste and pilferage by keeping a track of
all incoming inventory, segregating them, weighing them, and sending them to the location where they can be used with minimal lead times
Source good quality materials without comprising on the quality at the best prices
Out-bound Logistics
Out-bound Logistics- Concerned with the delivery of the cooked food at the premises of the client at the right time and in the right shape, quality and minimal time so that the consumers are satisfied
Achieve its objective by Proper co-ordination with the sales personnel who
get the order who would direct them to the client’s premises
Ensure timely delivery of the food and thereby ensure customer satisfaction
Co-ordinate with the operations department to facilitate timely packaging and forwarding of the meals
Sales Job Description
A job description clearly defines what the job is about and what can be expected from the job, and so it benefits both the employer and employee to be clear as to what the job will entail.
A portfolio of job descriptions for each job within the organisation helps to prevent task clashes.
•Recruiting and Training Sales staff•Supervising, Motivating and Monitoring team performance•Allocating areas to sales team•Setting budgets and targets•Reporting back to senior managers•Assist in making database of both existing and prospective clients•Co-ordinate with the departments to ensure a smooth workflow•Maintaining good relations and communication with clients giving them prompt service.•Engage in customer retention activities•Evaluation of performance of the sales team
Job Description of the Sales team Details covered in within a job
description would be:the job titlewho is accountable for the employeethe location of the joba brief description of what the job entailsa list of duties and responsibilitieshours of workworking conditions and pay.
Job Description On the sales front- (for institutional clients)
Make a database of prospect clients Take leads and make calls to clients and seek
their appointment for interview Meet the client to brief him about the product Arrange for a visit to the Kitchen premises for
the decision taker Negotiate and explain company policies on
price and credits Get the order Report to the sale manager Flexible working hours on the basis of number
of appointments per day
Job Description
On the sales front- (promotional activities) Observe corporate party happenings and
seek orders from them Get orders for special marriages and
outdoor catering/look for tie ups with special banquet halls
Arrange for putting up stalls at various fests
Job Description
On the service front- Continuous feedback from clients Handle credit requests and payments Take complaints and grievances if any
and convey them to the department concerned to improve upon them
Co-ordinate with the logistics department to ensure timely delivery of meals to the respective clients
RECRUITMENTS
Should recruit highly skilled and experienced sales managers.
The sales team could comprise high school drop outs with a fluent grasp of english, and can speak hindi and the local language used
The boundary spanners should have a pleasant personality since they would represent the company
Can tie up with some B-schools to hire management students on project basis.
Should try and lure competitors sales staff by providing better incentives
Training of Sales Personnel- “ACMEE” Approach Aim
The primary objective would be develop better communication and negotiation skills within the sales candidate in order to render him presentable and an active order getter
Identify training needs according to the job specification, individuals background and experience
Train sales team in sync with the marketing and sales policies of the company
Identify continuing training needs
Content Extensive knowledge about the kitchen
facilities and standards Detailed knowledge about the diet
features(product knowledge) The markets and target groups to be
catered Company information Skill development and communication
enhancement modules
Method Training method should be pragmatic and
practical. Hybrid of the traditional training model i.e.
lectures demonstrations etc with a focus on communication development through debates, role play, demonstrations etc.
Trainees can accompany sales team member while going for client counseling to gain field experience.
Use of media should be exploited to improve communication skills. Workshops for skill development should be organized
Execution In-house training wing tailored to train the
individuals as per the needs of the organization should be set-up.
Arrangements should be made for practical exposure of the candidate and a module of continuous improvement to be followed
The training personnel should themselves be well trained
The company can also outsource its training facilities to a third party training team
Evaluation Can be done on a performance basis the
key indicator being the number of orders which the trained individual can extract within a particular time frame,
or the number of client visits he/she can arrange to the kitchen premises.
Session reviews should be done on a reward basis
Sales Compensation Plan
Would be based on the company’s general compensation structure
Simple rankingClassification or gradingPoint systemFactor-comparison methodJob Evaluation and sales positions
A performance linked variable component which forms the major part of the compensation
Use of Bonuses would keep employees motivated
More focus on commission with a small amount of fixed remuneration
Motivating and Directing Sales Personnel Motivation
Regular reporting and performance appraisal Reward the best sales person of the month.
Reward would be apart from the commission Maintain harmony within the sales team so
that they work in sync without any conflicts. This would increase performance. This would be the task of the sales manager
Define clear localities for the sales people to avoid internal conflicts which could be detrimental to the sales
Controlling Sales Force
Establishing performance standards. Call frequency ratio Calls per day Order call ratio Number of client visits to kitchen Number of orders
Recording performances Field Sales reports Territorial sales
Evaluating performance against the standards by comparing the actual performance with the standard target
Taking action
THANK YOU!!!ANY QUESTIONS!!!