A study on sales force management the case of toyota giai phong from 2002 to 2006

vietnam national university, HANOI hanoi school of business Luu Thi Diep Anh A STUDY ON SALES FORCE MANAGEMENT THE CASE OF TOYOTA GIAI PHONG FROM 2002 TO 2006 Master of business administration thesis Hanoi - 2007 vietnam national university, HANOI hanoi school of business Luu Thi Diep Anh A STUDY ON SALES FORCE MANAGEMENT THE CASE OF TOYOTA GIAI PHONG FROM 2002 TO 2006 Major: Business Administration Code: 60 34 05 Master of business administration thesis Supervisors: Dr Vu Huy Thong dr nguyen viet anh Hanoi – 2007 TABLE OF CONTENT ACKNOWLEDGEMENTS i TABLE OF CONTENT ii LIST OF FIGURES v LIST OF TABLES vi LIST OF CHATS vii INTRODUCTION CHAPTER 1: SALES FORCE MANAGEMENT 1.1 DEFINITION AND THE ROLE OF SALES FORCE MANAGEMENT 1.2 FORMULATION OF A STRATEGIC PROGRAM 1.2.1 Sets goals and objectives .6 1.2.2 Demand estimation 1.2.3 Determines sales force size and structure 1.2.4 Sales territories 11 1.2.5 Quotas setting 13 1.3 IMPLEMENTATION OF THE SALES PROGRAM 14 1.3.1 Sales force recruitment and selection 14 1.3.2 Sales training .15 1.3.3 Sales Motivating 18 ii 1.3.4 Designing compensation and incentive programs 19 1.4 MEASURING SALES FORCE 22 1.4.1 Measuring Sales Force Productivity Drivers 23 1.4.2 Measuring People and Culture 24 1.4.3 Measuring Activity 25 1.4.4 Measuring Customer Results 26 1.4.5 Measuring Company Results 27 CHAPTER 2: ANALYSIS OF SALES FORCE MANAGEMENT AT TOYOTA GIAI PHONG .28 2.1 INTRODUCTION OF TOYOTA GIAI PHONG 28 2.1.1 TGP history and development .28 2.1.2 Toyota Giai Phong’s organization structure 29 2.1.3 Toyota Giai Phong’s financial competency and facilities 32 2.1.4 TGP’s business performance from 2002 to 2006 34 2.2 THE SALES FORCE MANAGEMENT AT TGP .35 2.2.1 TGP’s sales model .35 2.2.2 Implementation of sales force management at TGP 37 2.3 MEASURING SALES FORCE PRODUCTIVTIES 43 2.3.1 Sales results 44 2.3.2 Customer results 46 iii 2.3.4 Company results 52 CHAPTER 3: SOLUTIONS FOR IMPROVEMENT OF SALES FORCE MANAGEMENT AT TOYOTA GIAI PHONG 55 3.1 THE VIETNAM AUTOMOTIVE TREND .55 3.1.1 The Vietnam’s automotive market trend 55 3.1.2 The Vietnam automotive consumer’s trend 56 3.2 RECOMMENDED A NEW MODEL FOR TGP .56 3.2.1 Demand estimation 56 3.2.2 Sales force structure 57 3.3 IMPROVING QUALITY OF RECRUITMENT AND TRAINING 57 3.4 DEVELOPING CUSTOMER SATISFACTION PROGRAM 57 3.5 APPLY CRM 59 3.5.1 The core of CRM: 59 3.5.2 Benefits of CRM 60 CONCLUSION .62 REFERENCES 63 APPENDICES 64 iv LIST OF FIGURES Figure 1.1 Functional Sales Organization…………………………….…….9 Figure 1.2 Geographical Sales Organization……………………… …….10 Figure 1.3 Sales Organization with Product-Specialized Sales Force…… 10 Figure 1.4 Sales Organization Specialized by Type of Customers….… 11 Figure 2.1 Organization Structure of Toyota Giai Phong…………… ….31 Figure 2.2 Sales force structure at Toyota Giai Phong ………………….36 Figure 3.1 TGP’s sales organization specialize by type of customers … 57 v LIST OF TABLES Table 2.1 Human Resource of TGP…………… ………… 33 Table 2.2 TGP’s performance for years……………………….………34 Table 2.3 TGP’s commission table……………………………….………41 Table 2.4 TGP’s Sales record in 2006……………………………………42 Table 2.5 Average sales volumes per salesperson………………………44 Table 2.6 TGP Customer satisfaction results from 2002 to 2006…… …46 Table 2.7 TGP’s types of customers………… ……………………….…48 Table 2.8 TGP’s sources of customers………………… ………………51 Table 2.9 TGP’s revenues vs profit from 2002 to 2006…………… ….52 vi LIST OF CHATS Chat 2.1 TGP’s business performance from 2002 to 2005……….…….34 Chat 2.2 TGP’s sales volumes in 2006…………………………….……42 Chat Sales volumes per salesperson…………………………………45 Chat 2.4 TGP’s Customers Satisfaction results from 2002 to 2006……46 Chat 2.5 TGP’s type of customers………………………………………48 Chat 2.6 TGP’s source of customers ……………………………………51 Chat 2.7 TGP’s revenues vs profit from 2002 to 2006……………….…52 Chat 2.8 TGP’s market share……………………………… ………….54 vii INTRODUCTION THE PROBLEMS: Sales force is a powerful asset of selling organizations It is a crucial factor contributes to the success and stable development of the firm A good sales force management can help the company to increase productivities as well as its competitive advantages In Vietnam auto market, the tough competition between well-known brand such as Toyota (Japan), Ford (America), Mitsubishi (Japan), Mazda (Japan), Isuzu (Japan), Suzuki (Japan), Daihatsu (Japan), Honda (Japan), Mercedes (Germany), BMW (Germany), Kia (Korea), GM-Daewoo (Korea), besides, there are local manufacturers: Truong Hai, Xuan Kien auto and Chinese low-cost imported cars make the auto dealers face many difficulties Toyota Giai Phong, of dealers in the North and of 15 dealers of Toyota in Viet Nam, has three main functions: Toyota car sales – introduction, warranty, maintenance, repair service supply and genuine part supply It is tougher for Toyota Giai Phong because it compete not only with other brands dealers, but also with 14 other Toyota dealers in Viet Nam After years operation, Toyota Giai Phong has significant achievements but it usually in the 3rd rank of Toyota Vietnam’s dealers Customer satisfaction is not as high as expected, sometime it is lower than average scores The thesis “A study on sales force management – the case of Toyota Giai Phong from 2002 to 2006” is aimed to study and propose solutions to improve sales force management at Toyota Giai phong and can be applied for other dealers of Toyota Vietnam OBJECTIVES AND AIMS: Literature review about the sales force management like: designing sales force strategy and structure, recruiting and selecting, training, evaluating, compensating, and measuring sales force productivity Base on Toyota Giai Phong’s sales force performance analysis, the thesis propose solutions for improvement of sales force management at Toyota Giai Phong RESEARCH QUESTION: The thesis uses some questions as follows to make clear the situation of Toyota Giai Phong and propose solution: - What Toyota Giai Phong has been done so far? - What Toyota Giai Phong can to develop sales force management? - What conditions need to make Toyota Giai Phong improve Sales force management? SCOPE OF WORK: The thesis studies on sales force management process as well as factors influence and measurements sales force productivity at Toyota Giai Phong from 2002 to 2006 DATA SOURCES: The thesis bases on textbook of sales force management; human resource management, and some websites related to this topic also use to collect CONCLUSION In the tough competitive environment of automobile market, sales force management is really a big challenge to sales managers In order to enhance competitive competency and meet the demands of customers, selling organizations should concentrate on sales force management effectively The thesis satisfies the objective was setting It specifies the necessary of sales force management in both theory and practice The main results of the thesis are:  Clarify the theory on sales force management  Present and analyze the implementation of sales force management at TGP  Propose solutions to improve sales force management at TGP: o Recommend new sales model for TGP o Enhance the quality of recruitment and training o Improve the customer satisfaction o Apply CRM The author suggests above solutions at the aim to build a professional sales force and to manage it effectively for Toyota Giai Phong as well as other dealers of Toyota Vietnam 62 REFERENCES Andris A Zoltners, Prabhakant Sinha, Sally E Lorimer(2001), The Complete Guide to Accelerating Sales Force Performance, 1st edition, Amacom Gilbert A Churchill, Jr., Neil M Ford, Orville C Walker, Jr.(1997), Sales Force Management, 5th edition, McGraw-Hill Paul Gray Jongbok Byun(2001), Customer Relationship Management, Claremont Graduate School Robert J Calvin.(2000), Sales Management, the McGraw-Hill executive MBA Rosann Spiro, William J Stanton, Greg A Rich(2003), Management of a sales force , McGraw Hill Raymond A.Noe, John R.Hollenbeck, Barry Gerhart, Patrick M.Wright(1996), Human Resource Management, 2nd edition, McGrawHill Toyota Vietnam’s sales report in 2002/2003/2004/2005/2006 Toyota Giai Phong’s sales report in 2002/2003/2004/2005/2006 Toyota Giai Phong’s training documents 10 Toyota Giai Phong’s human resource report 2nd quarter of 2007 11 Toyota Giai Phong’s customer satisfaction report 2002/2003/2004/2005/2006 12 Toyota Giai Phong’s financial report in 2002/2003/2004/2005/2006 13 http://www.allbusiness.com/sales/sales-management/795-1.html 14 http://www.carviet.com/default.asp?mn1=1&mn2=1&id=2694 15 http://www.marketingpower.com/mg-dictionary-view2715.php 16 http://www.vama.org.vn/login.php?msg=loginmedia 17 http://vietnamnet.vn/kinhte/thitruong/2006/02/540161/ 63 APPENDICES Appendix 1: PROBATION EVALUATION Date: Department Position Items Categories Responsibility A T Hard working T I Cooperation T U Regulation D following E Working time following Development ability A Work B performance I quality L I 8.Work quantity T Y Ability 10 Work performance Future development Health status Other categories Signature * If average point is under 96, the official labor contract will not be signed Opinions of Mgr/ Head Mgr 64 Appendix 2: BẢNG TÌM HIỂU Ý KIẾN KHÁCH HÀNG VỀ QUÁ TRÌNH BÁN VÀ GIAO XE CỦA TOYOTA GIẢI PHĨNG Ngày…/2007 Nơi gửi: Phịng Khách Hàng, Cơng ty TGP-807 Giải Phóng - HN Điện thoại nóng: 046-6640859 Họ tên người trả lời:…… (người trực tiếp đến TGP để ký hợp đồng & nhận xe) Họ tên chủ xe: Điện thoại nhà riêng: Địa chỉ: Điện thoại quan: Kiểu xe: Hiace (Camry, Corolla, Hiace, Zace) Fax: câu hỏi đây,  Xin Q vị vui lịng đánh dấu (v) vào thích hợp q trình bán giao xe phản ánh cách chân thật cảm nghĩ Quí vị TGP Trang thiết bị phòng trưng bày Vị trí T Nơi đỗ xe t Phòng trưn Nhân viên bán hàng lịch thân thiện Nhân viên xe TOYOTA Nhân viên lời hứa thỏa thuận Nhân viên đặc tính kỹ thuật xe Nhân viên tốn, bảo hiểm đă Qúi vị phịng trưng bày (điều hòa, 10 Catalogue loại đầy đủ & xếp ngăn nắ 65 Quá trình giao xe Liên sau bán hàng 21 Quý vị có hài lịng với  định mua xe TOYOTA khơng? Rất hài lịng 22 Khi có ý định đổi xe khác, quí vị 66 Từ lúc nhận xe tới nay, xe q vị có xảy trục trặc, hư hỏng khơng? Nếu có xin q vị vui lòng đánh dấu phận bị hư hỏng vào ô tương ứng liệt kê Xe TOYOTA Xe TOYOTA 10 11 12 Tổng quát * Quý vị mua x * Quý vị có nhậ ưu đãi m Để hoàn thiện hoạt động bán giao xe Toyota Giải Phóng, xin Q vị vui lòng ghi xuống cảm nghĩ chân thật Xin chân thành cảm ơn hợp tác Quí vị! 67 Appendix 3: SALES REPORT IN 2002 (BY DEALERS) Month Dealer TTHC 82 THKC 140 TGP 86 TDN 29 ASTA 66 TBTC 79 TESC 96 TTSAMCO 60 TBH DS/TASS Total 638 North 308 Midle 29 South 301 Total 638 (Source: Toyota Motor Vietnam) 68 Appendix 4: SALES REPORT IN 2003 (BY DEALERS) Month Dealer TTHC THKC TGP TDN ASTA TBTC TESC TTSAMCO TLTK TBH DS/TASS 75 100 99 34 63 69 109 82 Total 26 661 North Midle South Total 274 34 349 657 (Source: Toyota Motor Vietnam) 69 4 Appendix 5: SALES REPORT IN 2004 (BY DEALERS) Month Dealer TTHC THKC TGP THP TDN ASTA TBTC TESC TTSAMCO TLTK TBH DS/TASS 77 105 117 Total 24 47 74 90 40 55 36 667 North Midle South Total 299 24 342 665 (Source: Toyota Motor Vietnam) 70 Appendix 6: SALES REPORT IN 2005 (BY DEALERS) Month Dealer TTHC THKC TGP TTL THP TDN TBMT ASTA TBTC TESC TTSAMCO TLTK TBH DS/TASS 78 107 106 55 83 81 28 26 19 18 Total 47 62 95 49 68 43 711 33 39 81 41 49 26 526 North Midle South Total 319 26 364 709 238 18 269 525 (Source: Toyota Motor Vietnam) 71 Appendix 6: SALES REPORT IN 2006 (BY DEALERS) Month Dealer TTHC THKC TGP TTL TMD THP TDN TBMT ASTA TBTC TESC TTSAMCO TLTK THTC TBH DS/TASS 67 101 118 85 18 23 41 75 99 73 53 65 89 46 87 18 30 74 63 81 40 Total 50 811 41 659 North Midle South Total 389 29 391 809 303 26 329 658 (Source: Toyota Motor Vietnam) 72 ... to make clear the situation of Toyota Giai Phong and propose solution: - What Toyota Giai Phong has been done so far? - What Toyota Giai Phong can to develop sales force management? - What conditions... department of Toyota Giai Phong The data and information are collected from Toyota Giai Phong and Toyota Vietnam EXPECTED RESULTS: Study on sales force management theory and analyze the case of. .. 3: Solutions to improve sales force management at Toyota Giai Phong CHAPTER 1: SALES FORCE MANAGEMENT 1.1 DEFINITION AND THE ROLE OF SALES FORCE MANAGEMENT ? ?A sales force is a group of salespeople