DISSERTATION REPORT
PROJECT TITLE
A STUDY ON THE TRAINING ASPECTS OF THE SALES PEOPLE IN THE RETAIL INDUSTRY
This dissertation report is being submitted as part of the requirements of the BBA Program of Baba Farid College of Management & Technology. The study has been
undertaken by:
Harkirat Singh DhaliwalUID NO-112261139
With the guidance and support of
Lect. Baldeep SinghFaculty
Baba Farid College of Management & Technology
2014
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GUIDE CERTICATE
This is to certify that Mr. Harkirat Singh Dhaliwal of our institute has completed
his dissertation in RETAIL INDUSTRY and carried out a study on THE
TRAINING ASPECTS OF SALES PEOPLE IN RETAIL INDUSTRY, under my
guidance.
Date:Place: Bathinda
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DECLARATION
I Harkirat Singh Dhaliwal, studying in Baba Farid College of Management &
Technology, Bathinda do hereby declare that this Dissertation Report relating to
RETAIL INDUSTRY and the topic STUDY ON THE TRAINING ASPECTS OF
SALES PEOPLE IN THE RETAIL INDUSTRY has been prepared by me after
doing a research in this industry, as part of the requirements of the BBA Program
(2014). My guide for the training has been Lect. Baldeep Singh.
I further declare that this Dissertation Report has not been submitted earlier to any
other University or Institute for the award of any Degree or Diploma.
Date:Place: Bathinda
HARKIRAT SINGH DHALIWAL
UID NO-112261139
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ACKNOWLEDGEMENT
I wish to express my deep sense of gratitude to _______________, Baba Farid college
of Management & Technology for providing me the opportunity to do my
Dissertation, which provided me with lot of practical experience of the industry.
I wish to record my deep sense of gratitude to project my guide Lect. Baldeep Singh
for his kind support, advice and encouragement from the beginning of the project
till the completion of the project report.
I would also like to acknowledge all those respondents who have lend their precious
time without which this dissertation work would not have been successful.
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CHAPTERS PAGE-NO1) INTRODUCTION 1
2) DESIGN OF THE STUDY 4
3) PROFILE OF THE RESPONDENTS 7
4) ANALYSIS 34
5) FINDING, CONLUSION AND SUGGESTIONS 58
ANNEXURE
BIBLIOGRAPHY
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Serial No
Description Table no Graph no Page no
1 Importance of training 1 1 43
2 Assessment of training needs 2 2 44
3 Number of sales people in Bathinda 3 3 45
4 Number of sales people in India 4 4 46
5 Frequency of conducting the training programme
5 5 47
6 Budget for training 6 6 48
7 Aims and objectives of training 7 7 498 Methods used for training 8 8 50
9 Place of training 9 9 5110 Why train sales force 10 10 52
11 The Trainer 11 11 5312 Product or service 12 12 54
13 Contents of the training 13 13 5514 Training aids used 14 14 56
15 Instructional methods 15 15 5716 Effectiveness of the training 16 16 58
17 Frequency of the training programme 17 17 59
18 Suggestions by the sales force 18 18 6019 Training needs 19 19 61
20 Experience of sales people 20 20 6221 Qualification of sales force 21 21 63
22 Income of sales people 22 22 6423 Commission and incentives 23 23 65
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EXECUTIVE SUMMARY
This report is the outcome of my learning during the research that I have done on the
training needs of the sales people in the retail industry, Bathinda, as part of my
dessertation. This report gives a clear view of the retail sector, and the training facilities
provided to the sales force of retail industry. The report gives a view of the industry and
its activities.
India's retail sector appears backward not only by the standards of industrialized countries
but also in comparison with several other emerging markets in Asia and elsewhere. There
are only 14 companies that run department stores and only two with hypermarkets. While
the number of businesses operating supermarkets is higher (385 in 2010), most of these
had only one outlet. The number of companies with supermarket chains was less than 1.
However, the retail market is growing, not only in terms of numbers but also in terms of
stature, image and class. It is interesting to know that in a modern city like Mumbai,
which already had relatively good standards, the retail industry has moved to an even
higher level.
Customers are constantly changing and their expectations keep rising. Today Indians
have become world class consumers who demand world class service.
Regular update of skills, training, development and technology (bearing in mind the
necessity of keeping the human element in place because technology in itself, is cold,
impersonal and not at all customer friendly) will ensure that brand marketers are able to
keep pace in a dynamic world.
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The market survey was conducted to know what kind of training is currently provided by
the retail companies. Almost all kinds of retail outlets were covered under this research
like the retail outlets of big brands of sports wear, clothing showrooms, food retailers of
all sizes. There were different numbers of sales people working in different kinds of retail
companies. All of them were provided with various training and this study was to identify
those training details in this industry.
The sampling method used was judgmental and convenience sampling.
In retail industry which is in boom from past one decade there is a drastic change in the
way the business is run. Now there are lots of major players in this industry from small to
big. The retail business has become more organized and customer oriented. So the
people in this industry are also changing with a more professional outlook with more
knowledge and skills to impress the consumers and make good volume of sales at the end
of the day. According to the requirements the sales people are to be trained and this study
was conducted to access the effectiveness of the training being given to the sales force at
present. The study came out with the findings that there is a good improvement in
fulfilling the training needs of sales force in retail industry in Bathinda. Some more
improvements are needed which are specified in the interpretation and suggestions.
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INTRODUCTION:
This research is basically done to find out the training needs of the sales people in the
retail industry and how they are being fulfilled. The retail industry in our country is at
boom and getting organized day by day, the demands of customers are not just great
products but also great shopping experience and to make this possible a retail outlet
should have well trained sales people. This study is made to know how well the sales
people of retail industry in Bathinda are trained to meet the customer expectations and
global standards.
The retail sales people demonstrate how items work and explain details of items to
customers; they give information about various models, colors, and brands of an item.
Sometimes they give special information about very expensive or complex items. They
help customers to find items in the store, they try to convince customers to buy those
items. Retail sales people compute the amount of the total sale and received cash, cheque
or credit card payments. Sales people also handle returns or exchanges of items.
The above mentioned are the very basic and important duties of sales people and they
require great skills and knowledge to perform well. And this high level performance can
only be seen if the sales people are provided with training as and when required.
Retailers are increasingly stressing the importance of providing courteous and efficient
service in order to remain competitive. The direct link between the customers and the
company is the sales people who are expected to provide this courteous and efficient
service to the customers. Sales people are periodically given training to update and refine
their skills for providing the best customers.
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A sales persons gain experience and seniority; they usually move to positions of greater
responsibility and may be given their choice of departments. This often means moving to
areas with potentially higher earnings and commissions. The highest earnings potential is
usually found in big-ticket items. This type of positions often requires the most
knowledge of the product and the highest talent for persuasion. So training is the most
important aspect in recent trend which increases the potential of sales people to meet the
organizational and personal objectives
The retail industry in Bathinda has changed its face and approach. Sales people working
in this industry play major role in handling the customers effectively. This study is done
to evaluate the training system used by the retail industry in Bathinda. And also to
understand training aspects which keeps the sales force of retain industry fit and ready to
face any kind of challenges, particularly due to increasing domestic and international
competition.
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DESIGN OF THE STUDY:
Problem statement:
The retail industry in Bathinda has changed its face and approach. From small
outlets to big showrooms and departmental stores, every retailer is giving their business a
new look. Sales people working here play a major role by handling the customers
effectively. Customers are of various types and to handle them and their queries, sales
people should be having good skills and knowledge. This study is to understand the
training aspects which keep the sales force of retail industry fit and ready to face any kind
of challenges, particularly due to increasing domestic and international competition.
Objectives:
1. To understand the training needs of the sales people in the retail industry in
Bathinda.
2. To evaluate the training system used by the retail industry in Bathinda.
3. To suggest improvements to the existing training programmes conducted by retail
industry.
Research methodology:
Sources of data: primary and secondary.
Primary data is collected by using descriptive research method from retail outlets of all
types.
Secondary data is collected from the internet, journals and news paper.
Sampling method:
Non-probabilistic Sampling scheme by using convenience and judgment sampling
technique.
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Sampling size:
70
Sampling unit:
Retail-outlets of all types.
Method of contact:
Personal interviews/contacts were carried out for the retail outlets.
Research Instrument:
Structured questionnaire used to collect the primary data.
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PROFILE OF THE RESPONDENTS:
Respondents were all types of retailers, in which again the sales managers, the
outlet owners and the sales people were asked the questions.
These retail outlets were from all over the Bathinda city.
These retailers were into all kind businesses like FMCG, durable goods and
others.
There were no geographical limitation (Bathinda) while selection of the retail
outlets.
All the respondents were individuals and no group responses were collected.
INDUSTRY PROFILE:
Whether selling shoes, computer equipment, or automobiles, retail salespersons assist
customers in finding what they are looking for and try to interest them in buying the
merchandise. They describe a product’s features, demonstrate its use, or show various
models and colors. For some sales jobs, particularly those selling expensive and complex
items, retail salespersons need special knowledge or skills. For example, salespersons
who sell automobiles must be able to explain to customers the features of various models,
the meaning of manufacturers’ specifications, and the types of options and financing
available.
Consumers spend millions of dollars every day on merchandise and often form their
impressions of a store by evaluating its sales force. Therefore, retailers are increasingly
stressing the importance of providing courteous and efficient service in order to remain
competitive. When a customer wants an item that is not on the sales floor, for example,
the salesperson may check the stockroom, place a special order, or call another store to
locate the item.
In addition to selling, most retail salespersons, especially those who work in department
and apparel stores, make out sales checks; receive cash, check, and charge payments; bag
or package purchases; and give change and receipts. Depending on the hours they work,
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retail salespersons may have to open or close cash registers. This may include counting
the money; separating charge slips, coupons, and exchange vouchers; and making
deposits at the cash office. Salespersons are often held responsible for the contents of
their registers, and repeated shortages are cause for dismissal in many organizations.
Salespersons may also handle returns and exchanges of merchandise, wrap gifts, and
keep their work areas neat. In addition, they may help stock shelves or racks, arrange for
mailing or delivery of purchases, mark price tags, take inventory, and prepare displays.
WORKING CONDITIONS:
Most salespersons in retail trade work in clean, comfortable, well-lighted stores.
However, they often stand for long periods and may need supervisory approval to leave
the sales floor.
This job can be rewarding for those who enjoy working with people. Patience and
courtesy are required, especially when the work is repetitious and the customers
demanding.
EMPLOYEMENT:
The sales people worked in stores ranging from small specialty shops employing a few
workers, to giant department stores with hundreds of salespersons. In addition, some
were self-employed representatives of direct sales companies and mail-order houses. The
largest employers of retail salespersons are department stores, clothing and accessories
stores, furniture and home furnishing stores, and motor vehicle dealers.
This occupation offers many opportunities for part-time work and is especially appealing
to students, retirees, and others looking to supplement their income. However, most of
those selling "big ticket" items, such as cars, furniture, and electronic equipment, work
full time and have substantial experience.
EDUCATION AND TRAINING:
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There usually are no formal education requirements for this type of work, although a high
school diploma or equivalent is increasingly preferred. Employers look for people who
enjoy working with others and have the tact and patience to deal with difficult customers.
Among other desirable characteristics are an interest in sales work, a neat appearance,
and the ability to communicate clearly and effectively. The ability to speak more than one
language may be helpful for employment in stores in communities where people from
various cultures tend to live and shop. Before hiring a salesperson, some employers may
conduct a background check, especially for a job selling high-priced items.
In most small stores, an experienced employee, or the proprietor, instructs newly-hired
sales personnel in making out sales checks and operating cash registers. In large stores,
training programs are more formal and usually conducted over several days. Topics
usually discussed are customer service, security, the store’s policies and procedures, and
how to work a cash register. Depending on the type of product they are selling, they may
be given additional specialized training by manufacturers’ representatives. For example,
those working in cosmetics receive instruction on the types of products available and for
whom the cosmetics would be most beneficial. Likewise, salespersons employed by
motor vehicle dealers may be required to participate in training programs designed to
provide information on the technical details of standard and optional equipment available
on new models. Because providing the best service to customers is a high priority for
many employers, employees are often given periodic training to update and refine their
skills.
JOB OUTLOOK:
As in the past, employment opportunities for retail salespersons are expected to continue
to be good because of the many job openings created each year due to the need to replace
the large number of workers who transfer to other occupations or leave the labor force.
Additional openings will be created by growth in employment of retail salespersons.
Employment is expected to increase about as fast as the average for all occupations
through the year 2008 due to anticipated growth in retail sales created by a growing
population. There will continue to be many opportunities for part-time workers, and
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demand will be strong for temporary workers during peak selling periods, such as the
Christmas season.
SALES PEOPLE IN RETAIL INDUSTRY
Retail salespeople help customers find items in stores. They try to convince customers to
buy those items.
There it is in the display, the 5.1 megapixel digital camera you've been eyeing for
months. It's got more bells and whistles than a circus clown! You've researched the
brand, the features, and finally decided that today, you are going to get it. You walk up to
the counter and the salesperson asks with a smile, "What can I help you with today?" You
reply that you want to buy the camera. Your fingers twitch with excitement. You can't
wait to start shooting! "Oh, I'm sorry," the salesperson says. "It's been a hot seller and we
are out of stock. We sold the last one just a few minutes ago."
You've waited and finally saved up enough money, and now it's not here! "Let me check
with our other store," the salesperson offers, checking the inventory on the computer. "A-
ha! They have two left. I'll put a hold on it right now. If you still want it, I can arrange to
have it shipped to your home," the salesperson says helpfully. You sigh with relief.
"Thank you," you say. "You've been very helpful." Thanks to that salesperson, you're
shooting high resolution digital images within a few days.
Retail salespeople demonstrate how items work and explain details of items to customers.
They give information about various models, colors, and brands of an item. Sometimes
they give special information about very expensive or complex items. They help
customers to find items in the store. If they cannot find an item, retail salespeople check
the stockroom or make special orders from other stores.
Retail salespeople compute the amount of the total sale and receive cash, check, or credit
card payments. Then they give customers change and receipts. Most salespeople are
assigned to a register at the beginning of their shift. They are also given drawers with
ôbanksö of money. They count their banks to be sure they contain the correct amount of
money. At the end of their shift, salespeople again count the drawers' contents and
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compare the totals with their sales data. They also total charge forms, return slips, and
other non-cash items. Finally, salespeople deposit the day's sales at the store's cash office.
WORK ACTIVITIESThe following list of occupational tasks is specific to this career.
Provide polite and efficient service to customers. Determine each customer's
needs.
Describe items for sale and show different models or colors if necessary. Answer
questions.
Show how items are used.
Make special orders or check other stores for hard-to-find items.
Receive cash, check, and charge card payments.
Compute cost of total sale using cash register.
Give cash change and receipts to customers.
Bag or package items for customers.
Wrap items to be given as gifts.
Arrange to mail or deliver special-order items.
Handle returns or exchanges of items.
Count and keep track of money in cash register.
Sort through charge slips, exchange slips, and coupons in cash register. Balance
cash drawers.
Make cash deposits at the store's cash office at the end of business.
Organize, display, and keep track of items for sale.
Stock shelves and racks.
Mark price tags.
Keep work areas neat.
Watch for and prevent security risks and thefts.
Stay up-to-date about sales and special offers and store policies.
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People in this career perform the following list of tasks, but the tasks are common to
many occupations.
Work with the public.
Convince others to buy goods.
Get information needed to do the job.
Establish and maintain relationships.
Communicate with supervisors, peers, or subordinates.
Update and use job-related knowledge.
Resolve conflicts and negotiate with others.
Working Conditions
In a typical work setting, people in this career:
Interpersonal Relationships
Deal with and provide service to customers.
Have a high level of contact with customers and coworkers.
May on occasion deal with angry or discourteous people.
Are moderately responsible for the health and safety of customers. This usually
applies to customers who test drive cars or other vehicles and equipment.
May on occasion be placed in a conflict situation.
Have moderate responsibility for outcomes. Salespeople are expected to meet
sales quotas.
Physical Work Conditions
Often work indoors. However, retail salespeople may work outdoors if they sell
items such as cars, plants, or lumber yard materials.
Work Performance
Must be exact in their work and be sure all details are done. This is so that
customers are charged the correct price for items.
Often repeat the same tasks.
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Hours/Travel
May work part time or full time.
May work evenings, weekends, or holidays.
Often work longer hours around the winter holidays.
May be discouraged from taking vacation time during peak shopping periods.
Physical Demands
People in this career frequently:
Stand for long periods of time.
Walk from place to place in the store.
Repeat the same motions.
Use hands to handle, control, or feel objects, tools, or controls.
It is important for people in this career to be able to:
Speak clearly so listeners can understand.
Recognize and understand the speech of another person.
Use stomach and lower back muscles to support the body for long periods without
getting tired.
It is not as important, but still necessary, for people in this career to be able to:
See details of objects that are less than a few feet away.
Use hands and fingers to grasp, move, or assemble objects.
Move two or more limbs together (for example, two arms, two legs, or one leg
and one arm) while remaining in one place.
See details of objects that are more than a few feet away.
See differences between colors, shades, and brightness.
Hold the arm and hand in one position or hold the hand steady while moving the
arm.
Bend, stretch, twist, or reach out with the body, arms, and/or legs. Sometimes
these movements are made quickly and repeatedly.
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Use muscles to lift, push, pull, or carry heavy objects.
Be physically active for long periods without getting out of breath.
Coordinate movement of several parts of the body, such as arms and legs, while
the body is moving.
Skills and Abilities
People in this career need to:
Communicate
Listen to others and ask questions.
Understand spoken information.
Express ideas clearly when speaking or writing.
Read and understand work-related materials.
Reason and Problem Solve
Analyze ideas and use logic to determine their strengths and weaknesses.
Judge the costs and benefits of a possible action.
Notice when something is wrong or is likely to go wrong.
Follow guidelines to arrange objects or actions in a certain order.
Use Math and Science
Use math skills to solve problems.
Add, subtract, multiply, and divide quickly and correctly.
Work with People
Recognize others' reactions and understand the possible causes.
Teach others how to do something, such as operate a new product.
Knowledge
People in this career need knowledge in the following areas:
Customer and Personal Service: Knowledge of providing special services to
customers based on their needs.
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Sales and Marketing: Knowledge of advertising and selling products and services.
Administration and Management: Knowledge of managing the operations of a
business, company, or group.
Education and Training: Knowledge of teaching and the methods involved in
learning and instruction.
Mathematics: Knowledge of the rules and uses of numbers. Areas of knowledge
include arithmetic, algebra, geometry, and statistics.
English Language: Knowledge of the meaning, spelling, and use of the English
language.
Public Safety and Security: Knowledge of protecting people, data, and property.
Interests
People in this career are people who tend to:
Consider support from their employer important. They like to be treated fairly and
have supervisors who will back them up. They prefer jobs where they are trained
well.
Consider relationships important. They like to work in a friendly, non-competitive
environment. They like to do things for other people. They prefer jobs where they
are not pressured to do things that go against their sense of right and wrong.
Consider good working conditions important. They like jobs offering steady
employment and good pay. They want employment that fits their individual work
style. They may prefer doing a variety of tasks, working alone, or being busy all
the time.
Have enterprising interests. They like work activities that involve starting up and
carrying out projects, especially in business. They like to lead and persuade
others, make decisions, and take risks for profit.
Have social interests. They like work activities that assist others and promote
learning and personal development. They like to communicate with others: to
teach, give advice, help, or otherwise be of service to others.
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Preparation
To work as a retail salesperson, you must:
complete on-the-job training; have excellent interpersonal skills; and
be self-motivated.
No formal education is required beyond high school. However, a college degree can be
good preparation for selling high priced or technical products, such as cars or computers.
Several fields of study provide a good background for this occupation.
Many employers require salespeople to have a college degree if their jobs are part of a
management-training program. Be sure to take courses in business management,
marketing, and computers if you are interested in a retail management position.
On-the-job-Training
Retail salespeople learn their skills mainly through on-the-job training. In smaller stores,
training happens one-on-one with a manager or owner. Larger stores have formal training
programs. In these programs you learn about customer service, security risks, and store
policies. You also learn how to operate cash registers and price-scanning machines.
Some retail salespeople receive special training from manufacturers. This training is
usually limited to expensive or complex items, such as computers or cars. You may also
need special training if you sell very specific types of items, such as plants, fabrics, or
health care products.
Work-Experience
Many jobs are entry level and do not require previous experience.
Some jobs, such as selling cars, building materials, or computers may require previous
experience.
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Over the past twelve years, Belding Skills Development has earned a reputation for
results-driven retail training. Belding has designed and delivered world-class retail
Customer Service training programs and retail Selling Skills training programs for some
of today's most successful retailers!
The organized retail sector is expected to grow at 6% by 2010 and touch a retail business
of $ 17 billion as against its current growth level of 3% which at present is estimated to
be $ 6 billion, according to the Study undertaken by The Associated Chambers of
Commerce and Industry of India (ASSOCHAM).
The Study has revealed that the retail sector will grow at GDP 7% by 2010 and enlarge
its market share to $ 280 billion from its present estimated level of $ 200 billion.
Releasing the Study on `Retail Scenario in India’, ASSOCHAM President, Mr. Mahendra
K. Sanghi has revealed that the organized sector retailing is all set to grow at much faster
speed than unorganized sector and the higher growth speed will alone be responsible for
its higher market share which has been projected for $17billion.
Cities and metropolies in which retailing will show booming prospects include Mumbai,
Delhi, Chennai, Kolkata, Bathinda and Kanpur, said Mr. Sanghi adding that the popular
mode adopted for building shopping malls in these cities will be based on build, operate,
lease and sell basis.
This system, as per the findings of ASSOCHAM will lead to establishments of closer
linkages and relationship between real estate developers, state governments, financial
institutions and retail industry.
As per ASSOC Ham’s estimates, investment opportunities that the retail sector will
create in next 4-5 years will result into continued urbanization and increase the per capita
income of Indian populace which will finally lead to greater consumerism.
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The growth of retail sector will lead to greater shift towards service economy in which
need for real estate will be paramount, said Mr. Sanghi.
Franchising in retailing will emerge as a popular mode of retailing as their will be
proliferation of availability of brands with both foreign and Indian companies acquiring a
strong brand equity for their products in near future.
The retail boom currently being witnessed in India is likely to have a significant impact
on the commercial real estate sector as the large metropolis will have sizable retail
construction projects underway. However, there will be few stumbling blocks that may
restrict the growth of retail sector. These include very high stamp duties on transfer of
property which vary from state to state level.
A case in example is Gujarat, Uttar Pradesh and few other states where the stamp duty is
charged at 12.5%, while there are certain states like Delhi in which
the stamp duty levied is within the range of 8%.Urban Land Ceiling Act, Rent Control
Act and Land Acquisition Act until amended will continue to distort property markets
and cities, leading to exceptionally high property prices. Presence of strong pro-tenancy
laws will also make it difficult for retailers to grow as this problem is compounded by
lack of clarity over titles to ownership.
The government should encourage People of Indian Origin (PIO) to invest in real estate
and township building and foreign investment in real estate business and retailing should
also be opened up.On the domestic taxation front, sales tax rates differ across the various
Indian states, making supply chain management a challenging task for organized
retailers. Inter-state sales attracts Central Sales Tax while for some categories of
products, certain states levy import duties namely entry tax on entry of goods into their
territory. Simultaneously, states levy export duties where goods are moved for sale
outside state border.
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Consumer behaviour in the organized retail industry has altered drastically over the last
few years, a fact that retailers need to be sensitive to. With the consumer becoming
increasingly discerning, it becomes vital for retailers to pay attention to every little detail
in order to be successful. Thus, providing a good brand experience is vital. Brand
experience would include several aspects: the timings of the store, the consumer’s entry,
the welcome that he or she receives, the familiarity of the layout, the ability to browse
with ease, the ease of navigation, the variety and the range, the product knowledge
possessed by salespeople, the
payment facilitation, the attractiveness of the loyalty programme, the seating
arrangement, the toilets, the packaging and the exit.
These are all crucial to the overall brand experience. If not handled well, it could result in
a disgruntled consumer, who spreads bad word-of-mouth. If the overall brand experience
is positive and pleasant, consumers are likely to keep coming back to the store and the
popularity of the store increases through wordof- mouth.
The retail market is growing, not only in terms of numbers but also in terms of stature,
image and class.
It is interesting to know that in a modern city like Mumbai, which already had relatively
good standards, the retail industry has moved to an even higher level.
Customers are constantly changing and their expectations keep rising. Today Indians
have become world class consumers who demand world class service.
Regular update of skills, training, development and technology (bearing in mind the
necessity of keeping the human element in place because technology in itself, is cold,
impersonal and not at all customer friendly) will ensure that brand marketers are able to
keep pace in a dynamic world.
Under no circumstances must brand marketers be allowed to get regressive; there is a
need that brand marketers constantly rise to the occasion and surpass customer
expectation. Recently, Crossword, the bookstore chain inaugurated its largest store at
Kemps Corner in Mumbai, where S Rriram, CEO, Crossword Bookstores, and his team
played gracious hosts to authors and readers. The spaciousness, the spread, and the focus
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on detail reflected world class standards and established Crossword as a strong brand.
Service is a key element in successful retailing and attention to detail is likely to result in
customer satisfaction and greater sales.
Spice-of-variety
One of the reasons why consumers frequent a particular store is to look at various items
under one roof. Range is another detail that the retail industry cannot ignore. At
Pantaloon, there is an attempt to provide a wide choice so that the customer can pick and
choose as per his or her taste. Discount and low cost are also factors that retailers need to
take care of as an increasing number of customers are willing to go a great distance to get
value for their purchases.
Offering goods at a price lower than MRP seldom fails to attract consumers. International
appeal is yet another detail that retailers need to attend to.
International products and brands still attract the Indian consumer and even a small
Marks & Spencer store has great appeal. Training is another important aspect of retail.
Shoppers’ Stop and Nirmal Lifestyles (which transformed a far-flung suburb like Mulund
into a retail hub) are both known to have top class training programmes for their
executives.
Finally, novelty is a detail that retail just cannot miss. In fact, it is a factor that serves to
differentiate an outlet from other outlets. Malls largely owe their success to the novelty
factor attached to them. Retailers need to keep several things in mind in order to enhance
customer experience and provide a positive brand experience. A few are listed below:
Understand customer needs quickly
A retailing professional notices a customer’s need even before he verbalises it.
Promptness in identifying and satisfying every customer’s unique needs is essential.
This requires keen listening and an acute sense of observation, which would enable the
retailer to provide a good brand experience.
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"I am excited about the segment," said Jain. "Our outlets are very modern. We do not sell
at the rate of gold or diamond on a particular day, we sell at a fixed price."
Intergold is a subsidiary of the Rosy Blue Group - a diamond manufacturing company
with offices in 15 countries. The group entered the Indian retail jewelry in 1988 with its
first store in Mumbai. Now, it has 24 stores in 15 cities. It is looking to add 12 stores
every year, said Jain.
He suggested that funding is a major issue for an organized retail model. "It takes years
for a retail chain to break even," said Jain. "If you get into malls, you have to deal with
the high cost of rent." In addition, it has been difficult to hire educated people and talent
into retail stores, he added. "Indian parents have traditionally not been willing to send
their children into the retailing business."
For the shopping malls, the struggle will be to deal with supply chain inefficiencies, said
Shoppers' Stop's Raheja. The distribution system in India has to be streamlined to avoid
wastage and to ensure low costs, according to him. "Supply chain is the biggest concern,"
he said. "Indian consumer is very price conscious. He wants value for money." Jain said
the Indian malls have a great future as they provide entertainment for shoppers, unlike
traditional "mom and pop" stores.
The malls are creating a shopping experience," added Jain. "The success of Café Coffee
Day and Barista has been because people did not have a place for leisure and hanging out
outside their offices or classrooms."
For Biyani, malls will remain a big city phenomenon only. According to him, the growth
will mainly be in specialty stores such as stores for watches, branded clothing and not a
generic super stores such as Wal-Mart.
According to the Federation study, development of the retail industry should be made a
priority by the Indian government. Issues such as inter-state movement of goods, and
30
infrastructure also need to be tackled to develop the retail industry in India. Lack of
foreign investment is what is keeping the industry from growing, according to the study.
TRAINING THE SALES FORCE:
Once a company has decided to invest time, money and resources in sales force training,
the next big challenge is its implementation. There is no "magic wand" that will
implement what's learned in a sales and marketing training session and make it part of the
company culture. A high performance sales culture is not an event, but a journey. All
journeys need road maps.
Effective Sales Training
Effective sales training is the foundation upon which long-term sales success is built.
Unfortunately, many sales training programs consist of just listening to someone tell you
what you should be doing and perhaps showing you how the instructor would do it.
The key to effective sales training is to provide more than just what-to-do training. It
must also show you how to do it along with providing the opportunity to hone your skill
by actually doing it.
For training to be truly effective, it needs to be a process and not an event.
Levels of Sales Training
Level-1
When your new employee is at Level 1 they are unconsciously incompetent. They are
unconscious of how you run your business and what to do at their new jobs. They are
incompetent to the terms of the skills needed to be a successful employee in your
business. Even if they have some sales skills when they start, they still are unconscious to
how things run within your company.
Start by teaching the basics of your business - step by step. Baby steps, until they grow to
the next level of learning. Let them develop the skills of welcoming your customers into
the store and gaining the customer’s trust. As your new staff members build a rapport and
31
new friendships with the customers, they will also be building their own confidence on
the sales floor.
Of course, product knowledge is a main factor in making the sale. But, when new
employees start out, it’s more important for them to make themselves and the customers
feel comfortable. The knowledge of the inventory will soon be learned as they work with
it.
Treat your new staff as if they were your special customers. Sell them on the excitement
of your inventory. This training process can be turned into an enjoyable and rewarding
experience for you. What a thrill to bring in new members to your team, get to know
them, and watch them learn and grow.
Even though this level of training may start with the basics, it can actually be the most
encouraging level of all because the new employee starts out with a lot of energy and
excitement about his or her new position. If you pick up on that energy you will find it to
be a most pleasant experience for both of you.
Level 2: Sales Training
At this level your trail training period should be over and, hopefully, you have decided
that your new employees are the right people for their jobs. Though they have learned a
lot the first month, they are now consciously incompetent. They are conscious of what is
needed to be done on the job, yet they still do not have the skills needed to be a great
salesperson and are still incompetent.
That is why this level can be the most frustrating of all. The excitement of the new job
may have worn off somewhat and they are frustrated because they see other team players
making all the sales.
At this time it is important to recognize their accomplishments and compliment them on
how well they are doing. Keep supporting and encouraging them at this level - you need
to be a cheerleader.
32
Set up a meeting with them to discuss how they are doing and offer your support in their
continued learning process. Let them talk to you about how they feel about their new
positions. Discuss concerns and answer any questions they may have about their new
positions. Find out how they feel about selling and what empowers them to work on
improving their skills.
Your sales people will increase their sales drastically when they add some genuine
enthusiasm for the products and services they are selling.
Level 3: Sales Training
Congratulations are in order when the newest members of your sales team reach this
level.
Whoever said, “You can’t get good help”, never took the time to train a staff to reach this
level. Why settle for less than the best team your money can buy?
When your employee has reached level three they are consciously competent. They are
conscious of what needs to be done on the job and are very knowledgeable about how
your business runs. They are competent because they know your products well and can
sell them on their own, easily and successfully. Delegate areas were they show strength,
show your appreciation and reward them for their accomplishments. Continue the
training process by informing them of changes in your policies and products. Empower
your staff to make decisions and accept their input toward your success at regular store
meetings. If you do, you’ll soon have the dream team you’ve always wanted.
Government policy
There has been vigorous opposition to foreign direct investment (FDI) in retailing from
small traders who fear that foreign retailing companies would take away their business,
lead to the closure of many small trading businesses and result in considerable
unemployment. Given the political clout of the small trading community, because of their
enormous numbers, the government has barred FDI in retailing since 1997. Hence, at
33
present, foreign retailers can only enter the retailing sector through franchising
agreements.
Organisational characteristics
Given the traditional and underdeveloped state of the Indian retail sector, the
organisational characteristics of retail enterprises are rudimentary. Most of them belong
to independent enterprises in the form of small family businesses.
Cooperatives have been present in India for several decades, spurred by the
encouragement given by the Indian Government, which viewed the cooperative
movement as an integral component of its erstwhile socialist policies. However, since the
1990s, there has been a reduction in government support for cooperatives. In 2002, there
were about 35,000 outlets run by cooperatives.Economic liberalisation, competition and
foreign investment since the 1990s led to a proliferation of brands with both foreign and
Indian companies acquiring a strong brand equity for their products. Hence, franchising
emerged as a popular mode of retailing. Sales of franchises grew at a rapid pace of 14%
per annum over the review period. In 2002, there were over 5,000 franchised outlets.
The other major retailing organisation format is multiples, better known as "chain stores"
in India. In 2002, there were about 1,800 chain stores. Among the various organisational
formats, sales of chain stores grew at the fastest pace, with sales growth during the
review period averaging 24% per year.
Food-retailers
There are a large variety of retailers operating in the food retailing sector. This is not
surprising considering the enormous size of the market for food. However, traditional
types of retailers, who operate small single outlet businesses mainly using family labour,
dominate this sector. In comparison, supermarkets account for a minuscule proportion of
food sales. This is because of the strong competitive strengths that traditional retailers
possess. These include low operating costs and overheads, low margins, proximity to
customers, long opening hours, and additional services to customers (such as home
delivery). Nevertheless, supermarket sales expanded at a much higher rate than other
34
retailers. This is because greater numbers of higher income Indians prefer to shop at
supermarkets because of convenience, higher standards of hygiene and the attractive
ambience.
Health and beauty products retailers
With growth in incomes, Indians have been spending more on health and beauty
products. As in the case of other retailing sectors, small single-outlet retailers also
dominate sales of health and beauty products. However, in recent years, a couple of retail
chains specialising in health & beauty products have sprung up. At present, they account
for only a tiny share of sales of these products. However, as Indians spend more on such
products in future, their business will undoubtedly expand substantially. There is also
scope for entry of more such chains.
Clothing and footwear retailers
Numerous clothing and footwear shops are to be found in Indian cities and towns,
especially in shopping centers and markets. These are a mix of traditional and modern
stores. Traditional outlets are small and cramped with little emphasis on alluring displays.
They basically stock a limited range of cheap and popular items. In contrast, modern
clothing and footwear stores are spacious with sample products attractively displayed in
windows, sometimes with mannequins. Just as in the case of food retailing, there are also
a huge number of retailers selling clothing and footwear in makeshift stalls or on
footpaths. Because of their rock-bottom prices, which are much lower than prices of
branded products, they attract a large number of customers.
Home furniture and household goods retailers
The home furniture and household goods retailing sector in India is dominated by small
retailers. Despite the large size of this market, very few modern and large retailers have
established specialized stores for these products. However, there is considerable potential
for the entry or expansion of specialized retail chains and it is likely that this will happen
during the next few years.
35
Durable-goods-retailers
The entry of a large number of foreign consumer durable companies into the Indian
market during the 1990s after the government liberalized its foreign investment and
import policies transformed this sector dramatically. A much larger variety of consumer
electronic items and household appliances became available to the Indian customer.
Competition among companies to sell their brands provided a strong impetus to the
growth for retailers operating in this sector.
Leisure and personal goods retailers
Rising household incomes due to economic growth spurred consumer expenditure on
leisure and personal goods in India. There are specialised retailers for each category of
products in this sector. A few retail chains also emerged particularly in the retailing of
books and music products. Another key feature of this sector is the popularity of
franchising arrangements between established manufacturers and retailers. Alternative
selling channels.
Sales through most alternative selling channels are tiny or non-existent. The only
exception was direct selling, which grew rapidly over the review period. The main reason
for this was that direct selling companies could easily attract a huge number of
"distributors", who constitute the key element for the success of any direct selling
company. Many of these are unemployed Indian housewives who welcomed this
opportunity to earn additional income for their households. The low start-up costs meant
that they could easily start this business.
Forecast total retail sales
Retail sales (in real terms) are predicted to rise more rapidly than consumer expenditure
during 2010-2012. The forecast growth in real retail sales during 2010-2012 is 8.3% per
year (compared with 7.1% for consumer expenditure).
Inevitably, modernisation of the Indian retail sector will be reflected in rapid growth in
sales of supermarkets, department stores and hypermarkets. This is because of the
36
growing preference of the affluent and upper middle classes for shopping at these types
of retail stores, given the conveniences they offer such as shopping ambience, variety and
a single-point source for purchases. Hence, sales from these large format stores are
predicted to expand at growth rates ranging from 24% to 49% per year during 2003-2008.
However, such rapid growth is from a small base. Hence, they will continue to account
for only a small share of total retail sales in 2008.
Retailing, one of the largest sectors in the global economy, is going through a transition
phase not only in India but the world over. For a long time, the corner grocery store was
the only choice available to the consumer, especially in the
urban areas. This is slowly giving way to international formats of retailing. The
traditional food and grocery segment has seen the emergence of
supermarkets/grocery chains (Food World, Nilgiris, Bombay Bazaar, Apna
Bazaar), convenience stores (ConveniO, HP Speedmart) and fast-food chains
(McDonalds, Dominos).
The emergence of new sectors has been accompanied by changes in existing
formats as well as the beginning of new formats:
o Hypermarket:
o Large supermarkets, typically 3,500-5,000 sq. ft.
o Mini supermarkets, typically 1,000-2,000 sq. ft.
o Convenience stores, typically 750-1,000sq. ft.
o Discount/shopping list grocer
In order to appeal to all classes of the society, retail stores would have to identify
with different lifestyles. In a sense, this trend is already visible with the
emergence of stores with an essentially `value for money' image. The
attractiveness of the other stores actually appeals to the existing affluent class as
well as those who aspire for to be part of this class. Hence, one can assume that
the retailing revolution is emerging along the lines of the economic evolution of
society.
37
Spread of organized retailing:
Organized retailing is spreading and making its presence felt in different parts of
the country. The trend in grocery retailing, however, has been slightly different
with a growth concentration in the South.
However, the Mecca of retailing is undoubtedly Chennai. What was considered a
`traditional', conservative' and `cost-conscious' market, proved to be the home
ground for most of the successful retail names - Food World, Music World,
Health and Glow, Vitan, Subhiksha and Viveks -to name a few.
The choice of Chennai as the `retail capital' has surprised many, but a variety of
factors acted in its favour. Chennai, in spite of being a rapidly growing metropolis
offers reasonable real estate prices, one of the most critical elements for the
industry. Chennai has been witnessing a high industrial growth and increasing
presence of the MNCs, both in the IT sector as well as outside it. The industrial
boom has led to the emergence of new residential areas with aggregation of
professionals as well as a rapid increase in the number of `double-income'
households and growth of the nouveau riche/upper middle class with increased
purchasing power. This has been combined with the increasing need for touch
and feel shopping (especially for the large migrant population). All the factors
have acted favourably in nurturing the industry.
Consumer- the prime mover
A variety of factors seem to influence the growth in the retailing industry.
`Consumer Pull', however, seems to be the most important driving factor behind
the sustenance of the industry.
In this context, a brief survey among consumers across income segments to
understand their spending pattern. An analysis of the `monthly purchase basket
of the consumers surveyed indicated that the average monthly household spend
38
on food and grocery related items varied across income segments. For instance,
in the case of upper income households, the average spend was around Rs
4,200 per month. As against this, the average spend in the case of a middleincome
household was around Rs. 2,850 and lower income households Rs.
1,250 per month. (This is computed from a sample of 100 customers having an
average family size of four).
Based on the distribution of the more than 15 lakh households in Chennai across
income segments and the average spend, a conservative estimate of the grocery
retailing potential at Chennai will be around Rs. 300 crores.
Besides increasing purchasing power, a variety of other factors also seem to fuel
the retailing boom. With increase in double-income households and
workingwomen, there is an increasing pressure on time with very little time being
available for leisure. In this scenario, consumers are seeking the convenience of
one-stop shopping, whereby they could have better utility of time. They are also
seeking speed and efficiency in processing, as a result. Being more aware,
consumers are on the lookout for more information, better quality and hygiene as
well as increased customer service. These changes in consumer behaviour also
augur well for the retailing industry.
However, in India there are no uniform trends with respect to consumer buying
behaviour. There are visible differences in the shopping pattern of consumers
across income segments as shown in the table.
Organized retailing has definitely made headway in the upper class. However,
even in this segment, items such as milk, fruits, vegetables and a significant
portion of `through-the-month' purchases seem to be done at traditional outlets.
The middle-income class prefer shopping for processed food and personal care
in supermarkets and fall back on traditional outlets for bulk shopping. Organized
retail outlets seem to be associated with branded items/special purchases.
Organized retailing does not seem to have made an impact on the lower class,
39
except for `curiosity' shopping.
The biggest question before organized retailers therefore, is whether this really
means a huge untapped potential for the organized retailers and whether the
conversion in mindset going to be easy.
40
41
IMPORTANCE TO TRAINING
How much importance your company gives to training of sales persons?
Very important 17.14%
Important 61.42%
Somewhat important 18.57%
Not at all important 2.85%
Table-1
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
veryimportant
important somewhatimportant
not at allimportant
Series2
Graph-1
The following graph shows the details of importance given to the training of sales people
by the company. Most of the companies have given it lot of importance to training. Few
companies rate it as most important factor. So we can clearly see that there is lot of
importance given to training in the retail industry in Bathinda.
Inference: 78% of the respondents feel that training of sales people is very important.
ASSESSMENT OF THE TRAINING NEEDS
42
How training needs of sales people are assessed? Based on
Performance evaluation 0%
Changes in product or market 1.42%
Job description 98.57%
Any other 0%
Table-2
performanceevaluation
changes inproducts/marketsjob decription
any other
Graph-2
This graph gives the details of how the training needs of the sales people are assessed.
Most of the companies do it on the basis of the job description of the sales people. Few
companies do it when there is any change in the product or the market as well.
Inference: 98% of the companies assess the training needs based on the job description.
NUMBER OF SALES PEOPLE WORKING IN BATHINDA
What is the strength of your sales force in?
43
a) Bathinda
1-5 93%
6-10 5%
11-20 2%
>20 0%
Table-3
1 to 5
6 to 1011 to 20>20
Graph-3
This graph depicts the number of sales people working for the retail outlets in Bathinda.
Most of them have around one to five sales people working for them. Only few have
more than five sales people.
Inference: 93% of the company’s sales force in Bathinda ranges from 1-5 .
NUMBER OF SALES PEOPLE ALL OVER THE COUNTRY
b) All India
44
1-5 0%
6-10 0%
11-20 0%
>20 100%
Table-4
1 to 5
6 to 1011 to 20>20
Graph-4
This graph shows the number of sales people employed by the retail companies in the
country. It is clearly shown that all the companies have more than twenty sales people
employed in the whole country as a whole.
FREQUENCY OF CONDUCTING THE TRAINING PROGRAMME
How often the training programmes are conducted for the sales people?
Once a year 79.72%
45
Two or more times a year 2.70%
As and when needed 14.86%
Any other 2.70%
Table-5
0.00%10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00%90.00%
once ayear
two ormore
times ayear
as andwhen
needed
any other
Series2
Graph-5
The following graph shows how often the sales people of the retail industry are
provided with training. Most of the companies or the outlets provide them training
once in a year. And the rest of the retail sales people are given training as and when
required.
Inference: 79% of the companies conduct training programmes for their sales force
once in a year.
BUDGET FOR TRAINING
46
Do you have a yearly budget for training programmes?
Yes 36.36%
No 63.63%
Table-6
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
yes no
Series2
Graph-6
This graph shows weather there is any fixed budget for the training programmes for
the sales people in the retail industry. The graph shows that most of the companies
does not have any budget allocated for training purpose as such. But some companies
do have a budget for training but the managers of the retail outlets are not provided
with the clear numbers of it.
Inference: 63% of the retail companies say that they don’t have any fixed budget for
their training programmes.
AIMS AND OBJECTIVES OF TRAINING
What are the aims or objectives behind training your sales staff?
Increase current skills and knowledge 18.64%
47
Increase sales performance 54.23%
Motivating sales people 26.27%
Any other 0.84%
Table-7
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%in
crea
secu
rrent
ski
llsan
dkn
owle
dge
incr
ease
sale
spe
rform
ance
mot
ivat
ing
sale
s pe
ople
any
othe
r
Series2
Graph-7
This graph shows us the aims and objectives behind training the sales force in the retail
industry. Most of the retail sales people are trained to enhance their sales performance.
Rest of them are trained for improving upon the current skills and knowledge or for
motivating them to perform better.
Inference: according to 54% of the companies main objectives of training programmes is
to increase the sales performance. 26% of the companies do it for motivating sales people
also.
METHODS USED FOR TRAINING
What methods do you normally use for training programmes for sales persons?
Lectures 25%
48
Audio visions 0%
Product demonstration 0%
Role playing 0%
On the job training 75%
Business games 0%
Case discussions 0%
Any other 0%
Table-8
0%10%20%30%40%50%60%70%80%
lectures
audio
-visu
als
prod
uct d
emonstra
tion
role playin
g
on th
e job
train
ing
busin
ess g
ames
case
disc
ussions
any o
ther
Series2
Graph-8
This graph shows us the methods used in training the sales people in the retail industry.
Most of the retail sales people are trained by giving on the job training and by giving
lectures to them. So the best way to train the sales people in this industry is by giving
them on the job training.
Inference: most of the companies (75%) give on the job training to the sales people
PLACE OF TRAINING
Where does the training normally take place?
Company’s premises 97.14%
Hotels 1.42%
49
Any other 1.42%
Table-9
company's premiseshotelsany other
Graph-9
Here in this graph we can see that most of the times the sales people of retail industry are
trained in the company premises only. Only few of the companies take them to hotels or
some other place. So its most feasible to train the sales people of retail industry in the
outlets itself so that they get practical knowledge and experience at the time of learning
itself.
Inference: 97% of the training programmes takes place at companies premises.
WHY TRAIN SALES FORCE
What drives you for training your sales force?
Customer satisfaction survey 1.44%
50
Sales performance 94.20%
Competitors analysis 0%
Management feedback 4.34%
Any other 0%
Table-10
0%10%20%30%40%50%60%70%80%90%
100%cu
stom
ersa
tisfa
ctio
nsu
rvey
sale
spe
rform
ance
com
petit
or's
anal
ysis
man
agem
ent
feed
bac
k
any
othe
r
Series2
Graph-10
This graph shows the reason behind training the sales force. The basic reason that drives
the company to train the sales force. Most of the companies feel that it’s the sales
performance that drives the company to train their sales force and some times because of
the feedback given by the management. So the training is basically given to enhance the
sales performance of the sales people.
Inference: 94% of the respondents feel that it’s the sales performance which drives them
for training their sales force.
THE TRAINER
Who train your salesperson?
Faculty within the company 88.23%
51
Faculty from outside 0%
Combination of a and b 11.76%
Any other 0%
Table-11
0.00%10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00%90.00%
100.00%
faculty
with
in the c
ompany
faculty
from ou
tside
combin
ation
of a an
d b
any o
ther
Series2
Graph-11
This graph tells about who trains the sales people mostly. Most of the retail organizations
have their own faculty from the company itself. Some of the retail companies use both
faculty from the company and from outside some times. So by this graph we can see that
in retail industry the sales people are mostly trained by the faculty within the company.
Inference: 88% of the retail companies have the faculty from the company itself.
PRODUCT OR SERVICE
What type of product or services you sell?
FMCG or non durable products 18.82%
52
Durable products 81.17%
Industrial products 0%
Any other 0%
Table-12
0.00%
10.00%20.00%
30.00%40.00%
50.00%60.00%
70.00%80.00%90.00%
FMCG ornon
durable
durableproduct
industrialproduct
any other
Series2
Graph-12
This graph shows the details of the type of product or service provided by the company.
Most of them are into durable products and few of the companies are into FMCG
products.
Inference: 81% of the products or service provided by the retail organisations are
durables.
CONTENTS OF THE TRAINING
What are the contents of the training programmes for new and experienced sales person?
Product knowledge 32.22%
Selling techniques 30.80%
Market knowledge 28.43%
Negotiating skills 8.53%
53
Sales related marketing policies 0%
Competitors knowledge 0%
Any other 0%
Table-13
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
prod
uct
know
ledg
ese
lling
tech
niqu
esm
arke
tting
know
ledg
ene
gotia
ting
skill
ssa
les
rela
ted
com
petit
orkn
owle
dge
any
othe
r
Series2
Graph-13
The following graph gives us the details of what kind of content is provided to the sales
force in the training. They are mostly provided with product and market knowledge and
selling techniques. Some of the companies also provide them with the negotiating skills.
Inference: product knowledge is given the highest priority in the training programme.
TRAINING AIDS USED
What type of training aids are used in your training programmes?
OH projector 12.19%
LCD projector 14.63%
Black or White board 48.78%
None 24.39%
Table-14
54
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
OHprojector
LCDprojector
black orwhiteboard
none
Series2
Graph-14
This graph gives the details about the training aids used for training the sales force. Most
of the companies provide training with the help of black and white boards, few use OH
projectors and LCD projectors also. And lot of companies does not use any of these aids
during training the sales force.
Inference: 48% of the companies use black and white boards as the training aid.
INSTRUCTIONAL MATERIAL
What kind of instructional materials and training aids are provided?
Manuals or product leaflets 90.14%
Cases 0%
None 9.85%
Table-15
55
manual or productleaflets
cases
none
Graph-15
This graph gives the details about the instructional material provided during the training.
Maximum number of companies use only manual or leaflets that give the product details,
none of the companies give the case studies to the sales force. And few companies never
used any of these materials.
Inference: 90% of the companies use manuals or product leaflets as instructional
materials in training programmes.
QUESTIONNAIRE FOR THE SALES FORCE:
EFFECTIVENESS OF THE TRAINING
Has the training provided to you helped you in doing your job well?
Very much helpful 20.58%
Helpful 72.05%
Somewhat helpful 7.35%
Not helpful 0%
56
Not at all helpful 0%
Table-16
very much helpful
helpfulsome what helpfulnot helpful
no at all helpful
Graph-16
This graph shows us the level of help that the sales force gained by under going the
training programme. It is seen that most of the sales people get lot of help from training.
There is no negative impact or results of training at all.
Inference: 72%of the sales people feel that training programmes are helpful in doing their
job well
FREQUENCY OR TRAINING PROGRAMMES
How often the training is provided to you?
Once a year 78.58%
Once in two years 9.58%
Twice a year 2.73%
Any other 9.58%
Table-17
57
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
once ayear
once intwo years
twice ayear
any other
Series2
Graph-17
This graph shows how many times the training is provided to the sales people. Most of
the companies provide training only once in a year. Only few companies provide training
more than once or even less than that.
Inference: most of the sales people (78%) are provided training once in a year.
SUGGESTION BY THE SALES FORCE
Any suggestions for improving the training programmes?
Contents 10.14%
Method used 2.89%
Trainers 14.49%
Evaluation method used 2.89%
No suggestions 69.56%
Table-18
58
0.00%10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00%
conte
nts
method
s use
d
traine
rs
evalu
ation
meth
od us
ed
no su
ggesti
ons
Series2
Graph-18
This graph shows the details about what the sales people suggest about the training for its
betterment. Most of them have no suggestions and few of them suggest to improve in the
case of trainer and the contents used or provided.
Inference: 69% of the salesforce have no suggestions for improving the training
programme.
TRAINING NEEDS
In which areas of your selling job you need training?
Selling techniques 22.97%
Negotiating skills 9.79%
Communication skills 22.29%
Product knowledge 22.63%
Market knowledge 20.94%
59
Retailing operations 0%
Consumer behaviors 1.35%
Any other 0%
Table19
selling techniques
negotiating skills
communicationskillsproduct knowledge
marketingknowledge
consumer behavior
Graph-19
This graph shows us the areas in which the sales force feels they need training. The rate
the selling techniques, communication skills, product and market knowledge as their first
priorities.
Inference: selling techniques (22%), communication skills (22%), product knowledge
(22%), market knowledge (20%) are the areas which are prioritized by the sales people.
EXPERIENCE OF SALES PEOPLE
How many years of experience do you have in selling?
0-6 months 50%
7-24 months 50%
25-60 months 0%
>5 years 0%
Table-20
60
0%
10%
20%
30%
40%
50%
60%
0 to 6months
7 to 24months
25 to 60months
>5 years
Series2
Graph-20
This graph gives the details of the experience that the sales people have in retail industry.
Most of them have either 6 months or at max 2years. This shows that most of the sales
people the retail industry don’t stick to this industry for a long time.
Inference: sales people in this industry do not have experience of more than 2 years.
QUALIFICATION OF THE SALES FORCE
Your qualification.
Below SSLC 2.38%
SSLC 95.23%
Graduation 2.8%
Any other 0%
Table-21
61
below SSLC
SSLCgraduationanyother
Graph-21
The following graph gives the educational details of the sales force in retain industry.
Most of the sales people in this industry are not highly educated. They have the minimum
qualification required to do the job. Almost all of them are either SSLC pass or even
under that.
Inference: 95% of the sales people’ qualification is SSLC.
INCOME OF SALES FORCE
Your monthly income (Rs)
<3000 7.35%
3000-5000 70.58%
5000-7500 22.05%
7500-10000 0%
>10000 0%
Table-22
62
<30003001 to 5000
5001 to 75007500 to 10000
>10000
Table-22
This graph gives the details about the income of the sales force in retail industry. Most of
the sales people get between three to five thousands per month. Only few get five to
seven and a half thousands per month. So the income level of sales people in this industry
is very less.
Inference: 705 of sales force’ monthly income ranges from 3000 to 5000.
COMMISION AND INCENTIVES
Does your income include commission or incentives?
Only fixed salary 98.33%
Only commission 0%
Some percent commission 0%
Fixed salary + commission 1.66%
Any other 0%
Table-23
63
0.00%
20.00%40.00%
60.00%80.00%
100.00%120.00%
only
fixed
salary
only
commisi
on
some p
ercen
t com
mision
fixed
salar
y+ co
mmision
any o
ther
Series2
Graph-23
This graph shows us the type of compensation paid to the sales people in retail industry.
Most of the companies pay only fixed salaries to them, only few provide for incentives
based on the performance.
Inference: 98% of sales people have only fixed salary in this industry.
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FINDINGS:
65
1. The companies in retail industry give a lot of importance (79%) to the training of
sales people.
2. The training needs of sales people are assessed mostly (98%) on the basis of their
job description.
3. Most of the retail outlets (93%) have around 1 to 5 sales people working for them.
4. The training in most of the companies (79%) is provided only once in a year.
5. Most of the companies (63%) do not have any fixed budget for training their sales
people.
6. Most of the companies (25%) use lectures and on the job training (75%) as the
training methods.
7. The training takes place in the company premises itself.
8. Product knowledge, selling techniques, market knowledge and negotiating skills
are given the most importance in training the sales force in retail industry.
9. Black and white boards (50%) and product manuals (90%) are used as training
aids in the training sessions.
10. Most (93%) of the sales people feel training is very helpful in doing their job well.
11. Most of the companies in retail industry have employed sales people with low
qualification such as SSLC (95%) and Graduation (3%).
12. Most of the retail companies (70%) give salaries between 3 thousands to 5
thousands per month and mostly (98%) they give only fixed salaries, without any
incentives.
CONCLUSION:
The nature of training itself is undergoing a transformation. Organizational
expectations for training have shifted dramatically. The pronounced change is a new and
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vigorous justification of the cost of training based on Return on Investment(ROI) and
organizational impact. This transition has been driven by the competitive nature of the
international economy.
In Retail Industry which is in boom from past one decade there is a drastic change in
the way the business is run. So the people in this industry are also changing with more
professional outlook with more knowledge and skills to impress the consumers and make
good sales at the end of the day.
The study indicates that training of sales people is given importance to greater extent to
meet the requirements. Basically the assessment of the training needs is done by
Companies on the basis of job description of the salespeople. The frequency of
conducting the training programme to sales people in retail industry is mostly once in a
year and most retailers do not have any fixed budget allocated for training programmes.
The nature of training itself is undergoing a transformation. As training has moved
from satisfying trainees to improving organizational and sales performance.
Effective sales training is the foundation upon which long term sales success is built.
Hence the study indicates that for effectiveness of training programmes the sales people
are given on the job training at the company premises. Most of retail organisations have
their own faculty from the company as the trainer. Most of them use black and white
board in the training sessions as their aids, and very few use overhead and LCD
Projectors.
The ability to generate and apply knowledge is a competitive advantage and in order to
sustain competitive advantage of sales people they are provided with product knowledge,
selling skills, and market knowledge through training.
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The instructional material provided during the training is manuals or leaflets that give
product details. However, case method of studies, role-plays, CDs is not used at all by
any retailer in the training programmes.
The study has also provided an insight in understanding the sales people point of view
with regards to the training programmes that are provided to them by the company. Sales
people feel the training programmes are helpful in meeting the requirements of the
organisation. Most of them are satisfied with the training being conducted once in a year.
The areas included in training such as selling techniques, communication skills, product
knowledge and market knowledge have served the sales people’s expectations to a great
extent. The experience of sales people is ranging from six months to two years. Most of
the sales people in this industry are not highly educated, they have minimum qualification
required to do the job, and most of them are SSLC passed. Their salary ranges from
Rs3000 to Rs5000 (per month) which is fixed and only few companies provide for
incentives based on performance (1.66%).
Finally to conclude, the training aspects of sales people in retail industry of Bathinda
are well taken care. The companies now are giving a lot of importance to the training, as
it makes a lot of difference to the success of their business and to sustain in the market.
There are a few improvements required which can enable the sales people with even
better skills to impress, convince and handle the customers very well.
SUGGESTIONS
Their should be better quality of trainers and the better methods of training
needed as some of the sales people are not very satisfied with them.
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Most of the companies provide training only once in a year which is not sufficient
as the market is very dynamic, hence the sales people should be provided with
training as and when needed to update their knowledge in addition to once a year
training.
Specific training objectives should be outlined on the basis of performance
parameters, job description, and type of product and market.
The trainee should be helped to see the need for training by making him aware of
the personal benefits he can achieve through better performance.
If necessary, a combination of training methods should be selected such as role
play, case method, video cassette/CD, lectures, demonstration of product etc.
The trainees should be provided with regular, constructive feedback concerning
their progress in training and implementation of the newly acquired abilities.
In retail industry it is seen that the sales people are not highly educated, hence, the
training content should be very simple and easy to understand.
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70
ANNEXURE
1) How much importance your company gives to training of salespersons? Why?o Very importanto Importanto Somewhat importanto Not at all important.
2) How training needs of salespeople are assessed? Based ono Performance Evaluation o Changes in products/marketso Job descriptiono Any other
3) What is the strength of your sales force ono All Indiao Bathinda office
Bathinda All India1-5 1-56-10 6-1011-20 11-20>20 >20
4) How often the training programmes are conducted for sales people?o Once a yearo Two or more times a yearo As and when neededo Any other…………………..
5) Do you have a yearly budget for training programmes?o Yeso Noo If Yes how much……………..?
6) What are the aims or objectives behind training your sales staff?o Increase current skills and Knowledgeo Increase sales performanceo Motivating sales personso Any other ……………………
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7) What methods do you normally use for training programmes for sales persons?o Lectureso Audio-visualso Product demonstrationso Role playingo On the job trainingo Business gameso Case discussionso Any other………………
8) Where does the training normally take place?o Company’s premiseso Hotelso Any other..............
9) What drives you for training your sales force?o Customer satisfaction surveyo Sales performanceo Competitor’s analysiso Management feedbacko Any other………………
10) Who train your sales person?o Faculty within the companyo Faculty from outsideo Combination of a and bo Any other…………………..
11) What type of products /services you sell?
o FMCG or Non-Durable productso Durable productso Industrial productso Any other………………
12) What are the contents of the training programmes for New and Experienced sales persons?o Product knowledgeo Selling techniqueso Market knowledgeo Negotiating skillso Sales related marketing policieso Competitors knowledge
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o Any other
13) What type of training aids are used in your training programmes?o OH projectoro LCD projectoro Black/white boardso Any other…….
14) What kind of instructional materials and training aids are provided?o Manuals/product leafletso Caseso Any other……….
Thank you
Questionnaire for the sales force
1) Has the training provided to you helped you in doing your job well?o Very much helpfulo Helpfulo Somewhat helpfulo Not helpfulo Not at all helpful.
2) How often the training is provided to you?o Once a yearo Once in two yearso Twice a yearo Any other…………
3) Any suggestions for improving the training programmes?o Contentso Methods usedo Trainerso Evaluation method usedo Any other……..
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4) In which areas of your selling job you need training?o Selling techniqueso Negotiating skillso Communication skillso Product knowledgeo Market knowledgeo Retailing operationso Consumer behaviouro Any other………..
5) How many years of experience do you have in selling?o 0-6monthso 7-24monthso 25-5yearso >5years
6) Your Qualification:o Below SSLCo SSLCo Graduateo Any other………….
7) Your monthly Income (Rs)o < Rs 3000o 3001-5000o 5000-7500o 7501-10000o >10000
8) Does your income include commission or incentive?o Only fixed salaryo Only commissiono ………….% of commissiono Fixed salary + ……………. Commission.o Any other………………
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BILIOGRAPHY:
BOOKS REFERRED:
TRAINING AND DEVELOPMENTBY GOLDSTEIN
WEBSITES:
www.businessballs.comwww.google.com
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