Sales Function at TCS.
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TCS is Pakistan's largest courier company with over 60% market share. It provides domestic and international courier services through air and ground networks. The document outlines TCS's sales functions including its sales hierarchy, territory management, key accounts, planning, SWOT analysis, objectives, strategies, forecasting, promotions, staffing, training, leadership and controlling. It also provides a critical analysis noting opportunities to expand internationally, strengthen competitive edge, and implement secure online payment methods.
Sales Function at TCS.
- 1. SALES FUNCTIONS AT TRANZUM COURIER SERVICE Presented By: Heraa Tariq – 16248 Saad Ahmed Baig – 16453 Sadia Shahid – 16009 Rabel Kumar – 16370
- 2. We interviewed Mr. Nauman Saeed, the Regional Sales Manager on November 27, 2015 at the TCS Headquarters and we are grateful to him for helping us out with this project.
- 3. INTRODUCTION TCS Courier Company came into existence in year 1983 with the symbol of ‘Trust and Reliability’ in order to serve customers across the globe. TCS provides domestic and international express services to consumers, corporate, SMEs and households alike with pickups and deliveries crossing over 100 million shipments annually. TCS works using more than 8, 000 professionals, 24/7 call center services, 250+ offices across Pakistan, 650 Express Centers, 737 airplanes, 375+ satellite tracked delivery vehicles and a team associated of 4000 couriers focused on providing best quality services. TCS operates in international territories through its business partners in Dubai and London, providing access to its customers in over 3,500+ destinations worldwide.
- 4. SERVICES Yavyo: Yavyo.com is an e-commerce site of TCS for online shoppers in Pakistan and all around the globe that offers wide range of leading local and international brands. Cash on Delivery: Cash on Delivery service is available nationwide for customers who want easy delivery of their orders with minimum risk of fraud or default. Courier & Logistics Express: TCS provides express & logistics services to C2C, B2B & B2C. Sentiments Express: a completely unique gift delivery service INTIANA: Intiana is a full service travel agency Offering travel & tour packages along with ticketing services. Flyer Express: Overnight delivery for your most sensitive shipments (Cell Phones, Passports, Important Documents etc.) MMS: Mail Management Solution is Pakistan’s fastest Digital Production Printing Facility at Karachi and Lahore.
- 5. SALES HIERARCHY Director 1) Regional director (NORTH) 2) Regional director (CENTRAL) Corporate Sales Head (4 under each RD) Key Account Manager (3 under each CSH) BUsiness Division manager (2 under each KAM) Territory Officer Tally delivery Officer Courier Force 3) Regional director (SOUTH)
- 6. TERRITORY MANAGEMENT TCS has also established sales territories based on geographic considerations. The entire Pakistan is covered in the three regions established by TCS: North region - Islamabad, Gujranwala and Peshawar Central region - Faisalabad, Lahore and Multan. South region - Hyderabad, Karachi, Quetta and Sukkur. Each city within these regions is further divided into zones. For example Karachi is divided into the following zones that cover the following areas: East Zone – Korangi, Landhi, Port Qasim South Zone – PECHS, Clifton, Defence, Shahr-e-Faisal, Baloch Colony West Zone - I. I. Chundrigarh Road, Sadar Central Zone – Federal B Area, Gulshan, Site 1 and 2, Safoora Goth
- 7. KEY ACCOUNTS TCS offers Telenor with an end to end solution for their SIM management. TCS packs, maintains and manages the inventory of Telenor SIMS that arrive at its warehouse. Moreover TCS is also responsible for distributing them with a 0% error rate allowing Telenor to focus on its core business. At the time of winter, TCS allows PNG to move its products such as lotions in temperature sensitive vehicles. TCS is also offering customized solutions to other retailers, fashion houses and big companies like PTCL. TCS also collects cash payments and prints utility bills which are received by customers at home. TCS has a project staff in all its key accounts that carefully looks for opportunities that TCS can utilize to increase revenues. In the month of December and June when many companies need to move bulk quantities of their annual reports, TCS offers them the MMS service. TCS now enables customers to trace and track their own consignments through a tracking number, SMS, e-mail or reference number. All these tracking tools help the customers know where exactly their shipment is, when and to whom it was delivered.
- 8. PLANNING Sales managers at TCS analyze the macro-environment and carry out SWOT analysis which helps them determine the major environmental issues and trends that will affect the sales function at TCS. Macro-environment ► Economic Aspect: An increase in foreign investments and positive GDP growth in Pakistan are some favorable conditions for TCS. ► Social and Cultural Aspect: Changing culture and new trends mean that TCS has to come up with new innovative ideas that not only attract new customers but also retain the existing ones. ► Technology Aspect: In the courier industry technology is providing faster and reliable delivery services. Therefore it is important for TCS to adapt to the technological advancements. ANALYSIS
- 9. SWOT ANALYSIS It is the market leader in the courier industry of Pakistan with a market share of more than 60% and 5000 corporate customer base that includes famous companies like Philips, Sony, LG and etc. In comparison to local competitors, TCS has a wider operational base that includes UK, Pakistan, Canada and UAE. UAE being the hub of TCS for international services. “Voice of Customer” at TCS brings in the customers’ feedbacks and complaints that means TCS strives to satisfy its customers in the best way possible. Customers can track and trace their consignments through different online tracking tools provided by TCS. It is capable of delivering goods within Pakistan through its air fleet comprising of six chartered aircrafts whereas FedEx relies on commercial air lines. Strengths
- 10. CONTINUED.. Weaknesses ► TCS does not allow the transportation of materials like as explosives, firearms, liquids, precious metals, stones and jewelry while its competitors are doing so. ► TCS uses its air fleet for the movement of goods within Pakistan only and it relies heavily on commercial airlines for overseas operations. ► TCS faces a strong competition in the international courier service industry. Opportunities ► TCS’s air fleet together with the construction of Gwadar International airport means TCS has an opportunity to start the transport of goods through its own aircrafts outside Pakistan. Threats ► The cost of TCS operations are increasing due to the increase in prices of diesel, petroleum and jet fuel both on the international and national level. ► Due to the highly uncertain conditions of Pakistan, people possess security and privacy concerns regarding their consignments. Pakistan flagship carrier PIA has started its own courier services.
- 11. OBJECTIVES AND STRATEGIES OBJECTIVES Retaining Customers - Satisfying customers by delivering their orders to the right place at the right time in the right condition and solving any problems faced by them. Attracting New Customers - Analyzing the changing needs in the environment and developing customized solutions to meet them. Profit Targets – Meeting the targets of the year decided on the basis of the sales target achieved in the previous year. Adaptation and innovation – Carrying out necessary steps that will help TCS to survive, strive and thrive in the changing diverse environment. STRATEGIES Differentiation – Continue to be the quality leader in the industry. Product Offerings – Come up with innovative solutions for the existing as well as new customers that meet their needs in the best way possible. Technology Advancements – That will simplify and speed up operations.
- 12. SALES FORCASTING & BUDGETING Market Analysis: Forecasting at TCS start with the marketing analysis; they examine the profiles of prospect customers or companies, analyze their needs and then approach them by providing a proposal including customized solutions for there problems. This leads to the projection of potential prospects from which expected sales can be determined. Seasonal Sales and special occasions: Forecasting is also done on seasonal basis as the demand and supply for several goods increases in certain seasons, so does the need of the courier services increases. For example, during winters the demand for warm clothing and moisturizers increases which leads to increased sales. The sales of sentiments express increases at the time of Eid, Christmas day and other festivals. Continuity extrapolation: As we have studied in our course that continuity extrapolation method involves a fixed dollar amount or a fixed percentage increment is projected in the sales from the last year of sales revenues received. Similar method is followed at TCS, they forecast there future sales target by setting a percentile increment in the current sales. They did not clearly specify any budgeting technique, but they told us that their goals are quantitative, achievable, measurable and realistic. For example: to increase sales by 15% or to gain 35% of the market share
- 13. PROMOTIONAL TATICS Direct selling: Promoting brands to corporate clients. The process starts with analyzing prospect clients by doing proper research about their vision, goals and needs. Sales rep then make a phone call and set a meeting with the management. TCS newsletter and calendars: TCS connect is the newsletter published by TCS highlighting all the activities and services provided by TCS both nationally and internationally. Print Media and E-Marketing: TCS has regular ad publications in renowned business publications such as Friday times, Pakistan & gulf Economics, etc. Loyalty Programs: TCS also runs loyalty programs for key customers on quarterly basis and also sends them gift on special occasions Painted vehicles: Motor bikes and vehicles with the standard red painted carriers with the logo along with the uniforms of the couriers. Newspaper Advertisements: Regular ads are published in Dawn, Jung, News, Daily Times and Nawa-e- waqt.
- 14. STAFFING ► Hired 40+ management trainees recently. Basically TCS hires people through various sources: Drive-ins - TCS goes to Different Universities and conduct recruitment drives (take test) and those candidates who clear the test then proceed to interviews. Newspaper/Print Media - Ads are given in newspapers and magazines for job vacancies Websites - Job portals are developed where interested individuals can apply. Process of applying through website: 1. Sign In 2. Upload your CV 3. Apply for a specific job Recommendation of existing employees – Existing employees are encouraged to assist in getting applications from persons they know. The newly hired employees undergo an induction process for a month of their probation. The process starts with the issuance of Job descriptions and company’s policies to the employees with an introduction and exploration around the premises and activities by immediate supervisors.
- 15. TRAINING For Non-Managerial Staff A training needs analysis is conducted after which HR designs an extensive training and development program for the sales reps following 80-20 rule, process includes: On-the-job training - best kind of learning takes place in the field, by dealing with the real world problems. Off-the-job training is also provided according to the technical, physical and psychosocial needs of employees such as workshops and other courses. After initial trainings, successful sales reps are assigned with territories, where they identify and approach accounts under the supervision of their supervisor for continuous feedback. For Managerial Staff Off-the–Job trainings - Online courses and lectures, Multinational conferences and leadership seminars like YLC ( Young Leader’s Conference) both nationally and internationally.
- 16. LEADING Communication at TCS: There is an open door policy, where an employee can directly communicate with their supervisor, heads or even executives when facing any problem and an intranet connection for communication across departments and geographical locations. Continuous motivation: Managers motivate their subordinates with both intrinsic and extrinsic incentives such as salary increments, peaceful environment, and recognition awards, paid leaves, food, travel and other benefits. Recognition and Appreciation: The management places great emphasis on the information and ideas provided by sales rep and encourage them by a good compensation package. Monitoring: Supervisors and managers continuously monitor all employees and their work, either individual or in teams. Operational disorder report (ODR), is one tool utilized to evaluate the gap between the projected objectives and result.
- 17. CONTROLLING QUOTAS: There is different number of quotas set for sales reps like 400 accounts have to reach each day in a territory. REPORTING PROCEDURES: The reporting in TCS is done on Daily, Monthly, Quarterly and Annually basis. Then these reports carry out the performance reviews and feedback is taken. REVIEW AND REVISSION: Performance reviews and feedbacks make the revisions possible and effective as per last year results Security: security measures include scanning, manifesting and pooling of the material and products. Customer Claims: In the few cases of damages that could occur in the process of delivery, TCS offers its customers a free of cost shipment or anything that is equivalent to the value of the damaged consignment. This shows that TCS values its customers and strives hard to keep them satisfied.
- 18. CRITICAL ANALYSIS TCS Sentiments Express TCS, a Pakistani based dispatch and Carriage Company spearheaded ecommerce business in Pakistan by offering gifts and different devices to be obtained from their online store and after that delivered to foreordained location of buyer. On the other hand, the thought couldn't get well known because of absence of mindfulness with respect to the office and inconvenience, which Pakistani clients feel while giving without end their MasterCard numbers to sites. This level of security concern is because of the general debasement situation in Pakistan, which make the site guests not to effectively trust assertion licenses gave by website administration. Different reasons of low online buyers incorporate MasterCard society, e-trade mindfulness, lack of education, restricted access to web, and so on. Neglecting Competition While taking interview, we analyzed TCS does not consider any competitor as a potential threat in near future. It is good to have self-confidence but over confidence is not good at times. TCS should consider their competitor like DHL and Leopard and it should look after their operations to maintain their market leader position in near future.
- 19. RECOMMENDATIONS Business Expansion TCS should try expanding and grabbing more international market share to get foreign exchange into country which has started to harvest its land for business growth. They should maintain focus on its core services and expanding itself into related chains of services like Introduction of Domestic and International airlines service will give TCS new streams of Profit. TCS must take advantage of strategic location of Pakistan and establish its own terminal and ports to handle specialized container packed sea cargo. Competitive Edge Besides giving into new business, TCS should also strengthen its work force and Train them for expansion. Training programs for employees should be future oriented and Objective in Nature. TCS should also look closely towards their competitors who are coming up with different ideas although they are not strong enough in terms of finance and experience. TCS will need a competitive edge in near future to give a healthy competition. Secure Online Payment Method TCS should strengthen their online payment method and make it secure so that customer should feel comfortable making an order. Nowadays online shopping is getting popular among young generation so they should target them.