(Luận văn) salesman’s fail in persuading customers using solar rooftop power at ttc energy jsc

t to UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ng hi ep w n lo ad ju y th yi Nguyen Thi Phuong Yen pl n ua al n va ll fu SALESMAN’S FAIL IN PERSUADING oi m at nh CUSTOMERS USING SOLAR ROOFTOP z z POWER AT TTC ENERGY JSC k jm ht vb om l.c gm n a Lu n va MASTER OF BUSINESS ADMINISTRATION y te re th Ho Chi Minh City – Year 2019 t to UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ng hi ep w n lo ad ju y th yi Nguyen Thi Phuong Yen pl n ua al n va ll fu SALESMAN’S FAIL IN PERSUADING oi m at nh CUSTOMERS USING SOLAR ROOFTOP z z POWER AT TTC ENERGY JSC k jm ht vb om l.c gm MASTER OF BUSINESS ADMINISTRATION n a Lu n va SUPERVISOR: LE THI THANH XUAN y te re th Ho Chi Minh City – Year 2019 LIST OF TABLES ng hi ep Page Figure 1.2 TTCE’s Services Page Figure 1.3 TTCE’s Biggest Customers Page Figure 1.4 TTCE vs Competitors Page Solar Rooftop System Page Figure 1.6 Strategic Suppliers Page Figure 2.1 Economic Value of Solar Energy Page TTCE’s Organization Chart n t to Figure 1.1 w Figure 1.5 lo ad y th Uneconomic Value of Solar Energy Page 10 ju Figure 2.2 Page 11 Figure 3.1 Summary of Installed Capacity & Revenue in 2017 & 2018 Page 13 Figure 3.2 Selling Stages Page 15 Figure 3.3 Summary of Deals Approached & Won in 2017 & 2018 Page 15 Figure 3.4 TTCE’s salesman won deals Page 16 Figure 3.5 Actual Selling Steps Page 18 Figure 3.6 Summary of Approaching History of Some Target Customers Page 19 Figure 3.7 Example of Initial Investment Cost of a Solar Rooftop Project Page 20 Figure 3.8 Price Comparison Page 21 Figure 3.9 Percentage of Firms Utilizing Guided Sales Processes Figure 3.10 Correlation between value chain, competitiveness and profitability Page 28 Figure 3.11 Compare the electricity cost by using solar energy system and EVN’s supply Page 30 Figure 4.1 Comparison of Main Equipment Figure 4.2 The Initial Cause and Effect Map Figure 4.3 Certain changes of Sales Organization Figure 4.4 Steps of building the sales organization Figure 4.5 Final Cause and Effect Map Figure 5.1 Relationship among the dimension of sales organization success Figure 5.2 The sales system Page 47 Figure 5.3 How a successful sales system function Page 48 Figure 6.1 The strategic sales organization for TTCE Page 51 Figure 6.2 Corporate events to be implemented Page 53 Figure 6.3 Value chain of rooftop power of TTCE Page 55 Figure 6.4 IT Application for Selling the Solar Rooftop System Page 55 Figure 6.5 Overall Cost, Human resource and Timeline of Application for smart devices Page 58 Figure 6.6 The Forecast Revenue Growth Page 59 pl Renewable Target for 2020, 2025 and 2030 fu yi Figure 2.3 n ua al n va ll oi m at nh z Page 26 z jm ht vb Page 38 k gm Page 40 Page 41 om l.c Page 42 Page 45 a Lu Page 46 n n va y te re th t to TABLE OF CONTENTS ng Executive Summary .2 hi CHAPTER 1: COMPANY OVERVIEW ep 1.1 TTC Energy Joint Stock Company (TTCE) – A member of TTC Group .3 1.3 Mission 1.4 Vision w Future through n 1.2 lo ad Core Values .4 1.6 Manpower and Company Structure 1.7 Business Area 1.8 Biggest Customers & Competitors 1.9 Rooftop system’s equipment ju y th 1.5 yi pl n ua al n va CHAPTER 2: PROBLEM CONTEXT Why using solar rooftop power? 2.2 Booming solar rooftop power in Vietnam 10 2.3 Why solar rooftop power not really interested by Vietnamese people? 12 ll fu 2.1 oi m 3.1 at nh CHAPTER 3: PROBLEM IDENTIFICATION 13 Symptom Analysis .13 z z The revenue not fully reached in 2018 13 vb Potential Problems .14 3.3 Problem Validation 24 3.4 The importance of main problem .32 k jm ht 3.2 gm CHAPTER 4: CAUSE VALIDATION 33 Potential Causes 33 om l.c 4.1 The initial cause and effect map 40 Validating Main Causes .41 a Lu 4.2 n The final cause and effect map 45 va CHAPTER 5: ALTERNATIVE SOLUTIONS .46 n References: 79 Appendix 82 Page of 95 th CHAPTER 8: SUPPORTING DOCUMENTS 61 y CHAPTER 7: CONCLUSION 60 te re CHAPTER 6: ACTION PLANS .51 Executive Summary t to Solar rooftop power basically is not completely the demand, customers want to be the ng hi smart and clean consumers but their installation plan are still very ambiguous This is a ep big challenge in the industry and at TTC Energy JSC (TTCE) as well In 2018, the w contracted capacity exceeded the target However, the revenue was under the targeted n lo plan which is the symptom in connection with such a series of many potential problems ad such as: Customers not overwhelmed by salesman’s performance; No strategic sales y th organization; Time consuming for closing a deal; Little insight into core product values ju yi by salesman; No sales tools, R&D neglect; No experienced sales resource in the pl industry; High initial investment cost in the industry ua al n As a new established company, TTCE’s salesman mostly sells freely on their own ways, va n closing the deals mainly thanks to the reputation of the TTC group's leaders because fu ll most potential customers are introduced by the TTC group leaders Customers somehow m oi confuse and hesitate in their decision Thus, the fail in persuading customers using solar at nh rooftop power at TTCE is the main problem in relation to low salesman performance z z Due to the main causes are as of no strategic sales organization and neglect in vb developing sales tools and R&D activities, the best proposed solution to improve the ht k jm TTCE’s low salesman performance should combine related activities, organize sales gm activities in consistent with marketing strategies, company strategies and together with developing advanced information technologies like: an application for smart devices to l.c om introduce all information of solar rooftop power from survey to procurement, installation, testing and operation in order to transfer best values of solar rooftop power a Lu system towards customers and to completely win customers' trust, then they confidently n n va make a quick purchase decision y te re th Page of 95 CHAPTER 1: COMPANY OVERVIEW t to 1.1 TTC Energy Joint Stock Company (TTCE) – A member of TTC Group ng hi ep Established in February 2017 and located at 253 Hoang Van Thu Street, Ward 2, Tan Binh District, HCM City, TTCE is a subsidiary in energy of TTC Group which w n has been over 40 years of operational experience in fields such as Energy, Real lo ad Estate, Sugarcane, Education and Hospitality, consists of 04 Corporations, 01 ju y th Sectoral Committee and more than 150 subsidiaries with over 10,000 employees Particularly in the energy sector, Gia Lai Electric Joint Stock Company (GEC), a yi pl leading member company with more than 25 years, has been investing in building al ua energy projects: wind power, hydropower, biomass power and especially solar n power plants with target of 1,000MW by 2022 Besides solar power plants invested va n by GEC, TTC Group has also been investing in solar rooftop power projects, fu ll provided by TTCE which currently is the leading in solar rooftop power market in oi at nh 1.2 Future through m Vietnam z z vb In recent years, the growth of electricity consumption in Vietnam has always jm ht doubled the growth rate of gross domestic product TTCE’s renewable energy k development projects will contribute to realizing the target of increasing electricity gm output to 14% per year in the period of 2015 - 2030 of the Government Energy is a om l.c very practical industry for Vietnam's economy in the integration process Investing in clean green energy, TTCE is aiming for a sustainable development In order to a Lu move forwards a safer and more prosperous future, there is only one way to balance n n va the environmental issues and economic development at the same time y te re th Page of 95 1.3 Mission t to ng Using efficient resources and optimizing added value for Shareholders, customers hi and employees, "Bring the prosperity to customers" Creating a green energy ep source to enrich the community life and economic development in parallel with w environmental protection n lo ad 1.4 Vision y th ju “Becoming the leading private investment organization in renewable energy in TTCE differentiates from product quality to the leading service yi Vietnam” pl ua al standards TTC Energy offers the optimum solution for power savings, increasing n the economic value, while still reducing production costs, providing quality and va long-term technology solutions and increasing competitiveness for business n ll fu 1.5 Core Values oi m at nh TRUSTWORTHY - TTCE has extensive experience in implementing projects nationwide and internationally Inheriting from TTC Group and GEC, TTCE z z provides professional services through leading engineering teams with more than jm ht vb 30 years of experience k RESPONSIBILITY - TTCE provides after-sales services and maintenance during gm system operation TTCE commits operational performance and genuine warranty system performance and meet the desired needs of the customers om l.c devices TTCE focuses on technical processes, equipment quality to optimize a Lu n QUALITY - TTCE determines quality as a prerequisite for delivering core values y each individual te re around the world TTCE provides quality customer services that meets the needs of n va of products and services TTCE provides equipment from prestigious partners all th Page of 95 1.6 Manpower and Company Structure t to ng Up to the end of 2018, TTCE’s total manpower is about 60 employees organized as hi shown in the following structure (Fig.1.1), including: 04 members of Chairman and ep the Board of Directors, 15 persons of sale & marketing department mostly the w young & the inexperienced, 13 persons of technical department and 10 persons of n lo financial accounting, administration, human resource, office, internal audit, and ad ju y th around 18 sales collaborators Figure 1.1 – TTCE’s Organization Chart yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va te re Source: TTCE’s Annual Report y th Page of 95 1.7 Business Area t to ng TTCE currently offers the full rooftop power services Figure 1.2 – TTCE’s Services hi from design survey, procurement, and installation to ep testing, operation and maintenance (Fig.1.2) TTCE w supplies, constructs and installs the rooftop solar n lo system on the roof of various projects from commercial ad y th centers, convention centers, hotels, resorts, residential ju areas, apartment buildings and office buildings to zones, yi industrial parks and export processing pl n households ua al factories, cold storage, parking lots, hospitals and even Source: TTCE’s Marketing Report va n 1.8 Biggest Customers & Competitors fu ll Figure 1.3 – TTCE’s Biggest Customers oi m TTCE’s biggest customers (Fig.1.3) are nh mostly the big enterprises like Saigon Co.op, at Nguyen Kim, BigC, MM Mega Market, z k jm Source: TTCE’s Market Analysis Report gm access to businesses ht industrial parks to expand relationships and vb cooperating with business associations and z Vinmart / Vincom, Lottemart, Novaland and om l.c Based on data in the market analysis report of TTCE (Fig.1.4) in December 2018, compared to current the rivals i.e SolarBK, Vu Phong, Redsun, DAT solar, AEEC, a Lu etc, TTCE's total installed capacity accumulated up to 2018 is leading with more n n va than 15MWp currently while only about 6MWp of SolarBK, 1,5MWp of Red Sun, y te re 400KWp of Vu Phong,… th Page of 95 Figure 1.4 – TTCE vs Competitors t to ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m 1.9 Rooftop system’s equipment nh at The two main equipment types of solar rooftop system are the solar panels and z z inverter which are not manufactured in Vietnam and almost imported from oversea vb known as the Inverter: Inverter device for converting y te re Source: TTCE’s Marketing Report n va into direct current (DC) power n capturing and converting solar energy a Lu photovoltaic (PV) installed on the roof for om Also l.c panels: Figure 1.5 – Solar Rooftop System gm System (Fig.1.5) Solar k Operation Principal of Solar Rooftop jm ht 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Building a Winning Sales Force: Powerful Strategies for Driving High Performance Amacom; 2009 p 47-320 (42) Tahir H, Waggett C, Hoffman A Antecedents of customer satisfaction An E-CRM framework Journal of Business and Behavioral Sciences Fall; 2013 p.112-120 (43) S.S.iyer Implementing Value Management Managing for Value New Age International Ltd; 2009 p 1-38, 157-173 ju (34) yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th Page 81 of 95 Appendix t to ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th Page 82 of 95 t to ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th Page 83 of 95 t to ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th Page 84 of 95 t to ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th Page 85 of 95 t to ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th Page 86 of 95 t to ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th Page 87 of 95 t to ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th Page 88 of 95 t to ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th Page 89 of 95 t to ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th Page 90 of 95 t to ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th Page 91 of 95 t to ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th Page 92 of 95 t to ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th Page 93 of 95 t to ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th Page 94 of 95 t to ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th Page 95 of 95