Development of measures to improve sales activities. Improving the sales activities of a trade organization Improving the sales activities of an enterprise using an example
Topic: Marketing planning (sales) of enterprise products
Introduction
1. Goals, objectives and content of the enterprise’s sales activities
2. Organization of sales activities of the enterprise
2.1. Brief description of the enterprise
2.2. Characteristics of distribution channels
2.2.1. Determining the length of distribution channels and the costs of their maintenance
2.2.2. Assessing the effectiveness of existing distribution channels
3. Planning the sales activities of the enterprise
3.1. Prospects for the development of the enterprise
3.2. Development of options for a sales plan for the enterprise’s products, assessment of their effectiveness and selection of the most appropriate one
Conclusion
Bibliography
INTRODUCTION
Sales of manufactured products is an integral part of the activities of industrial enterprises in market conditions. A company can count on real commercial success only under the condition of rationally organized distribution and exchange, i.e. sales of products. In the chain “production – distribution – exchange – consumption”, marketing activities account for the last three links. To ensure the effective sale of manufactured goods, an enterprise must carry out a set of targeted actions to ensure the movement of goods in the market space and actively influence pricing policy.
The organization of product distribution of an enterprise is based on a focus on satisfying the diverse needs of the end consumer and a set of actions to bring the product as close as possible to the target group of consumers. The choice of orientation and method of satisfying consumer demands is the essence of the company’s “policy” in the field of sales.
The sales policy of a manufacturer of products should be considered as a purposeful activity, the principles and methods of implementation of which are designed to organize the flow of goods to the final consumer. The main task is to create conditions for converting the needs of a potential buyer into real demand for a specific product. Such conditions include elements of sales policy, distribution capitals (sales, product distribution) along with the functions with which they are endowed.
Economists distinguish two approaches to determining the essence of “sales”. According to the first, sales operations begin from the moment the product leaves the enterprise directly and ends with the transfer of the goods to the buyer. Sales, in the broad sense of this concept, is the process of selling industrial products in order to convert goods into money and satisfy the requests and needs of customers.
The specifics of sales in the narrow sense cover only the final phase of the reproduction process - direct communication between the seller and the buyer, and most economists classify all other operations in the field of “sales” as commodity circulation. This is due to the fact that a transaction in direct communication between sellers and buyers is influenced by many factors related to the external environment (the atmosphere of the place of sale) in which it is carried out.
The main goal of this course work is to study the methodological foundations of planning the sales of enterprise products and develop a product sales plan using the example of LesKO OJSC.
The subject of research in the work is the sales activities of the enterprise, the object of research is the enterprise OJSC "LesKO".
To achieve this goal, it is necessary to solve the following tasks:
Explore the theoretical foundations of sales activities at the enterprise;
Describe product distribution channels;
Assess the effectiveness of existing distribution channels;
Develop options for a sales plan for the enterprise’s products;
THE CONCEPT, ESSENCE AND ROLE OF SALES ACTIVITIES IN THE ENTERPRISE
Traditionally, enterprises have paid less attention to sales policy compared to the development of product, pricing, communication and service policies. Only when it was impossible to achieve competitive advantages in the listed areas did attention turn to sales policy. Meanwhile, it is in the sales sphere that it is most difficult to copy successful solutions, since this is due to the complexity of the problems being solved, the relative “hiddenness” of the steps taken from prying eyes and the delayed manifestation of a successful combination of organizational and human resources.
Sales is the area of activity where the company's goals are ultimately realized. Sales is the process of promoting goods from the manufacturer to the consumer, including transportation of goods, warehousing, storage, maintaining inventories at the required level, promotion to wholesalers and retailers, pre-sale preparation, placing orders, documents and insurance, monitoring the movement of goods and selling goods .
Due to its complexity, the sales process cannot be considered as a one-time event; it must be part of a deeply thought-out long-term strategy of the company. In accordance with the company's goals, a sales plan should be developed as a whole, then a plan for product groups and individual products, a plan for individual markets, a plan for sales representatives and, in the case of large consumers, a plan for consumers.
The main elements of sales activities are the following:
Transportation of products – its physical movement from the manufacturer to the consumer;
Refinement of products - selection, sorting, assembly of the finished product, etc., which increases the degree of availability and readiness of products for consumption;
Product storage – organizing the creation and maintenance of the necessary stocks;
The main goal of sales is to realize the economic interest of the manufacturer (obtaining business profit) based on meeting the effective demand of consumers.
Main objectives of sales activities:
Deliver the goods to such a place, at such a time and in such quantity that it most suits the consumer;
To attract the attention of the consumer to the product, to interest him.
Sales policy is a behavioral philosophy or general principles activities that the company intends to pursue in the field of building distribution channels for its goods and moving goods in time and space.
In this context, the main principles of activity in the field of distribution can be called the following:
Focus;
Comprehensive accounting of marketing information regarding customer requirements, needs and problems of potential participants in the distribution channel, own sales costs, the sales policy of competitors, and government policy in the field of regulation of contracts and agreements with other market participants;
Complexity;
Coordination (combination of sales decisions with decisions in the field of product, pricing, communications and service);
Systematicity (considering sales and other marketing tools as elements that cause a synergistic effect from their joint use);
Flexibility (readiness to reconsider one’s positions if necessary).
In other words, marketing activities represent the conscious management of product distribution activities.
In accordance with the basic principles of sales policy, a sales strategy is developed, and then tactics. Sales strategy is long-term and medium-term decisions on the formation and change of sales channels, as well as the processes of physical movement of goods in time and space under market conditions. A sales strategy is developed for different markets, different products, stages of the product life cycle, and for other reasons.
Sales tactics are short-term and one-time events. Tactical measures are aimed at eliminating the deformation that occurs in the activities of production departments and the sales network due to unforeseen changes in market conditions, errors of management personnel and can lead to a complete contradiction with the strategic objectives of the company. The essence of all sales policies is revealed in the process of planning and implementing strategic and tactical actions.
The instrument of influence on the consumer on the part of the enterprise within the framework of the sales policy is the sales mechanism. This mechanism includes, on the one hand, distribution channels, their structure, the process of selecting sales channels, and, on the other hand, actions for the development and implementation of marketing activities for the physical distribution of goods.
The following criteria for decision-making when implementing sales activities can be used: the amount of turnover; market share; distribution expenses; degree of branching of the distribution network; the image of distribution channels, that is, organizations that provide distribution and sales of goods; the level of cooperation between subjects in the distribution system, ensuring a reduction in conflict and commercial risk; flexibility and survivability of the distribution network.
The distribution network may include the following entities: distribution bodies of the manufacturing company; sales intermediaries; sales partners.
As a rule, wholesale and retail enterprises that have economic and legal independence act as sales intermediaries.
The main sales methods are:
Trading systems, including centralized and decentralized sales;
Own or external forms of sales organization;
Direct and indirect sales through trade intermediary enterprises (distribution routes).
Depending on the number of intermediaries in the distribution system, the level of the channel is established, which can be a law firm or an individual performing the functions of moving goods from the manufacturer to the consumer. The number of intermediate levels can characterize the length of the channel. A zero-level channel, for example, does not include an intermediary, since the manufacturer, through its own internal or external entities, transfers the product directly to consumers.
When planning sales activities, an enterprise focuses on choosing not just one channel from all possible, but the best combination of these channels, taking into account not immediate benefits, but the development of long-term relationships with business partners.
2. Organization of sales activities of the enterprise
2.1. Brief description of the enterprise OJSC "LesCo"
The timber processing enterprise, open joint-stock company OJSC LesCo, is an independent organization formed as a result of contributions from private individuals.
Registered in the village of Malinovsky, Sovetsky district, production began on May 1, 1994.
OJSC LesCo operates on the basis of the charter of an open joint-stock company. The main goal of the Company is to make a profit.
OJSC "LesCo" carries out the following activities:
complex wood processing, including the production of lumber, industrial chips and other consumer goods;
marketing of forest products;
trade and intermediary activities;
foreign economic activity;
construction and operation of industrial and social facilities;
other types of activities not prohibited by the legislation of the Russian Federation.
The authorized capital of OJSC LesCo is six million rubles.
The joint stock company has issued three thousand ordinary shares with a par value of two thousand rubles. All shares are fully paid.
The total headcount is 130 people.
The main activity of LesCo OJSC is the processing of roundwood, small-sized and low-grade timber into lumber for export and domestic use. Lump waste is used for the production of process chips sold for export.
In 2010, a program was adopted to increase volumes by processing low-grade and small-sized wood that is not sold in round form, as well as to increase the efficiency of lumber production through deeper processing - the production of dry lumber. This is due to the fact that currently produced products (raw lumber) are uncompetitive in the foreign market.
The domestic market is limited by a decrease in the needs of the national economy. The Chinese market receives mainly raw lumber produced by regional enterprises with Chinese capital. By producing and exporting lumber to China, they are displacing similar products from Russian manufacturers from the Chinese market.
As part of the implementation of the adopted program, in 2010, workshop No. 2 was built for processing small-sized and low-grade wood, capable of processing wood with a diameter of 10-20 centimeters into lumber, which is in demand on the Japanese market.
For 10 years, LesCo OJSC has been supplying products to the Japanese market through its partner, the Sumi company. Recently, customer demands have become increasingly higher. This is due to the fact that high-quality wood is supplied to the Japanese market from other countries.
The main requirements for lumber today are:
wood moisture content should not exceed 14 percent
the wood must be processed longitudinally on four sides on a planer
Despite the fact that such wood is more expensive, an increasing number of buyers prefer it.
Achieving the goals of the enterprise and internal control is ensured by the implementation of tasks in which the relationship and interaction of its various elements is required to achieve general or specific indicators (milestones), by which the effectiveness of management and development of the organization can be judged from various angles. The main performance indicators of the enterprise can be characterized by the following points: sawn raw materials, produced semi-finished products, including for export, produced wood chips, revenue from products sold, cost of products sold, profit from products sold, balance sheet profit, net profit.
Table.2.1
Dynamics of the main indicators of products produced by the timber processing enterprise OJSC “LesCo”
|
Sawed raw materials | |||||
|
Produced p/m | |||||
|
including for export | |||||
|
Chips produced | |||||
From Table 2.1 it can be seen that the share of escort products is increasing, and the production of lumber in general is decreasing, due to increased requirements for the quality of products.
From this we can conclude that production is aimed at its quality, not quantity.
Table.2.2
Dynamics of financial results from products sold.
|
Rate $ C.B | |||||
|
Revenue from products sold | |||||
|
Cost of products sold | |||||
|
Profit from products sold. | |||||
|
Balance sheet profit. | |||||
|
Net profit. | |||||
From the dynamics of the main indicators of manufactured products and financial results from the sale of products, it is clear that the profit of LesCo OJSC depends on the export of lumber (chips are all exported); lumber is supplied to the domestic market in small batches.
Characteristics of distribution channels
The choice of a method of marketing products is an integral part of sales planning at the enterprise and involves the interpretation of all the activities of the company; it is necessary to plan and organize the sales system of products from the manufacturer to the recipient accordingly.
The process of organizing product distribution includes the following stages
choosing a storage location and storage method;
determination of the cargo movement system;
introduction of an inventory management system;
establishing a procedure for processing orders;
choice of methods of transporting products.
With the effective organization of product distribution, each of these stages is planned as an integral part of a well-balanced and logically constructed overall system.
Despite the fact that there are only two main classification characteristics (the basis of the organization of the system and the number of intermediaries), the relationship between the manufacturing company, resellers and end consumers can take on many types and forms.
The most active role in these relations belongs to the manufacturing company, which, when choosing a distribution system, primarily takes into account the risk factor of product distribution, and also evaluates sales costs and profits.
The positions occupied by firms in relation to sales have characteristics that make it possible to classify sales by type (Table 2.3).
The direct sales system involves the direct sale of products to the end consumer. Accordingly, they are connected by a direct sales channel. Its distinctive feature is the ability for the manufacturing company to control the path of the product to the final consumer, as well as the conditions for its sale.
However, in this case, the company incurs significant non-production costs due to the need to create expensive inventory, and spends a large amount of resources on the function of directly bringing (selling) the goods to the end consumer, while assuming all the commercial risks of product distribution.
At the same time, from the position of the manufacturing company, the advantage of this form of sales is its right to the maximum amount of profit that can be earned from the sale of manufactured products (services).
Table 1.1.
Classification of sales types
Classification sign
Essay
The thesis contains 74 sheets of explanatory note. The text of the explanatory note consists of 3 sections and 11 subsections, 20 tables, 16 figures, 2 appendices. The thesis was completed using 40 sources.
The thesis is devoted to the study of the efficiency of sales activities and the development of measures to improve it using the example of the Body-Master retail chain, which is located in Barnaul.
The key words in the thesis were the following: sales activities, efficiency, development, etc.
The object of the study is the retail chain "Body-Master" (IP Peshkov)
The objectives of the work are:
The work used materials from the financial and statistical reporting of the enterprise, data on products, markets, competitors, and consumers.
The first chapter examines the theoretical and methodological foundations of sales management. In the second chapter, a business diagnostic of the company is carried out. In the third chapter, measures have been developed to improve the management of distribution channels, and the economic effect of the measures has been calculated.
The work is of practical importance for the company, since the Body-Master retail chain is faced with the task of solving problems in the implementation of sales activities in order to improve the quality of customer service and organize a sales system in the Barnaul market.
Introduction
1. Theoretical foundations of sales activities
1.1 Essence and purpose of sales activities
1.2 Types and forms of sales activities
1.3 Specifics of sales activities in retail trade in modern conditions
2. Business diagnostics "Body Master"
2.1 Ownership structure
2.2 Products and markets. Product characteristics
2.3 Product and market classification
2.4 Procurement
2.5 Description of the trading process
2.6 Personnel
2.7 Financial condition
2.8 Industry and competition analysis
3. Improving the sales activities of the retail chain "Body - Master"
Conclusion
Bibliography
Introduction
Success in the market in the sale of a particular product depends not so much on the production and financial capabilities of firms, but on the peculiarities of organizing the sales activities of the enterprise.
Improving the sales activities of an enterprise is to bring goods to the consumer in the place, quantity and quality that are required, as well as to make the most of its capabilities to improve customer service.
When improving sales activities, achieving the company's goals occurs through assessing and meeting consumer requirements. Due to the fact that retail trade is currently characterized by a decrease in demand, especially for non-essential goods, many aspects of enterprise operations require careful analysis and modernization. In particular, it is necessary to improve sales activities, since it is this that determines the profitability of the enterprise. The phenomena occurring in the market are due to a decrease in income levels, and therefore the solvency of the population.
The purpose of writing the thesis is to study and improve the organization of sales activities in the Body-Master retail chain.
To achieve this goal, it is necessary to solve the following tasks:
define and study the essence of sales activities and its components at the enterprise,
study the features of sales activities at retail trade enterprises in modern conditions;
conduct business diagnostics of the Body Master retail chain;
conduct an analysis of sales organization in the Body-Master retail chain;
develop measures to improve the sales activities of "Body-Master"
The object of the study is the retail chain "Body-Master" (IP Peshkov).
The subject of the study is the sales activities of "Body Master".
When writing the work, various theoretical and periodical sources on the topic were analyzed. From theoretical sources, the most significant contribution to the work was made by the following authors: and other authors. Periodical sources: "Sales Management", "Management in Russia and Abroad", "Marketing in Russia and Abroad"
The theoretical basis is based on the works of leading marketing specialists: F. Kotler, E.P. Golubkova, A. M. Nemchina, D.V. Minaeva, V.N. Naumova, M.V. Akulich.
The methodological basis was such methods as SWOT analysis, competitiveness analysis, questioning, etc. The use of each of these methods is determined by the nature of the problems solved in the research process.
The work used materials from the accounting, financial and statistical reporting of the enterprise, data on manufactured products, competitors, and consumers.
The thesis consists of an introduction, three chapters, a conclusion, a list of references and applications.
The first chapter examines the theoretical and methodological foundations of sales activities. In the second chapter, a business diagnostic of the research object is carried out. In the third chapter, measures have been developed to improve the sales activities of the “Body-Master” retail network, a preliminary budget has been drawn up, and the economic effect of the measures has been calculated.
The business diagnostics carried out made it possible to assess not only the current state of affairs of the retail network, but also showed in which direction the enterprise could move further, in order to increase the efficiency of sales activities and the enterprise as a whole.
The practical significance of the work is to, having studied the theoretical foundations of sales activities, analyzing the activities of the retail network "Body - Master" and the influence of external factors, to develop recommendations for improving the sales activities of "Body - Master". Implementation of these recommendations will lead to an increase in the profit of the retail network.
1. Theoretical foundations of sales activities
1.1 Essence and purpose of sales activities
The organization of sales activities at an enterprise is one of the most important components of its functioning. Sales activities provide the enterprise with the main cash flow for its functioning. It is on the establishment and development of sales activities at an enterprise that its market success or failure depends.
Marketing activity, according to M. Akulich, is the practice of exchanging material assets and services, i.e. a special type of activity on which the final results of the company’s economic activities as a whole depend. Sales activities are aimed at selling specific types of products, regardless of when they are carried out: before the start of production (based on an order) or after completion of production (searching for buyers of an already produced product when the manufacturer is working on an unknown market).
In the works of domestic organization theorists one can find several interpretations of sales activities. Here are some of them:
sales activities - commodity-money exchange, during which goods from the supplier become the property of a trading enterprise with a focus on the needs of market demand;
sales activities are everything that ensures the maximum profitability of a trade transaction for each of the partners, with primary consideration of the interests and demands of consumers;
sales activity is a special type of activity associated with the sale of goods, on which the final results of the company depend.
The concept of sales activities was first formulated by Harvard Business School in 1958: “Sales activities exist to profitably satisfy consumer demands.” The essence of this logic can be represented as the purchase and sale of goods aimed at market (customer) demand and obtaining a well-deserved profit. The statements of the founder of the French administrative school, A. Fayol, are very instructive: “The skill of selling is characterized by deep knowledge of the market and the strength of rivals, distant foresight and the practice of agreements. The sales function ensures that the prices assigned to higher organizations are not a source of dangerous delusions.”
Sales activities are carried out through the mechanism of operations, which, as V. Burtsev writes, have the following content:
find a buyer; conclude a deal with him (i.e. correctly draw up a contract or agreement in which it is necessary to stipulate all the conditions: goods, quantity, quality, price, deadline) of delivery, basic delivery conditions, form of payment, force majeure circumstances, delivery conditions - acceptance of goods, etc.);
fulfill the contract, i.e. prepare goods for delivery, deliver them to the buyer, make payments for the delivered goods.
Transformations carried out in trade and sales cannot fail to take into account a number of circumstances.
Firstly, the ongoing economic changes, the characteristics of the transition period, the mentality and purchasing behavior of the population.
Secondly, all elements of the macro- and microenvironment must work as a single and coherent mechanism operating in new economic conditions.
Thirdly, market transformations must be carried out in connection with economic processes and market principles established in world practice.
Sales activities are reflected in a variety of manifestations, so it is necessary to highlight its basis. This approach will allow us to most fully reveal the essence of sales and specify its capabilities.
Formation of a sales policy, as noted by one of the most famous domestic specialists in the field of marketing E.P. Golubkov, is based on the use of the marketing mix element “bringing the product to the consumer,” which characterizes the organization’s activities aimed at making the product available to target consumers.
The main content of the element of the marketing complex “bringing the product to the consumer” is the choice of the optimal scheme for delivering the product from the manufacturer to the consumer, its physical embodiment, called physical distribution or product distribution (organization of transportation, storage, cargo handling), as well as after-sales (service) service for consumers. In these areas, a certain sales policy is being formed, which includes both strategic and tactical sales decisions. To strategic decisions, according to E.P. Golubkov, the following can be attributed:
determining through which channels and in what proportions the products should be marketed;
determination, if appropriate, forms of integration of participants in the commodity distribution process;
selection of sales methods;
formation of a “logistics” marketing system.
Practice shows that sales driving factor consumer market. If a company sells a product, it means it receives money and develops, and if not, it becomes bankrupt. Key sales provisions are subject to generalization of results, testing by life, i.e. translating them into the practice of firms and companies.M. Porter and D. Stock emphasize a strategic approach to solving sales problems. They believe that the distribution system has moved beyond its traditional narrow influence as exclusively the sale of a particular product and has great importance in strategic purpose, i.e. The arsenal of marketing tools is inexhaustible. Having analyzed the points of view of researchers, we can come to the conclusion that different interpretations sales activities are determined by its multifaceted nature. They consider the sales category from the perspective of an entrepreneur, businessman, economist, financier, etc. At the same time, the formative position is occupied by science, practice, the level of market development, and the scope of sales application. However, despite the noted differences, many theorists agree that the essence of sales comes down to the purchase and sale of goods in the sphere of circulation, taking into account market (customer) demand and receiving money from the buyer. The purchase and sale of goods, due to a change in the forms of value, is presented as an important component of marketing activities. However, purchases of goods and exchange transactions with product suppliers, built on a sales basis, do not exhaust the entire variety of commercial functions.
The completeness and integrated approach to marketing policy comes down to its coverage of all stages of the passage of products from manufacturer to consumer. At the same time, the sales mechanism should be aimed at realizing the emerging demand and interests of buyers. And in this aspect it is related to marketing. The basis of the formative conditions for sales activities is the objective reality of market relations and the technology of promoting products from the manufacturer to the consumer.
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Farmers, regardless of their situation and farm size, usually successfully produce agricultural products, but they rarely manage to successfully market them. This is the result of a number of factors:
The training and skills of farmers and farm managers were usually based on the production system and often at a specialized level, with few trained specifically in marketing;
Processing, wholesale and retail enterprises are usually in a more advantageous position, closer to the market, and benefit from the added value of agricultural products;
In the private sector, farms are usually small producers and cannot influence market prices;
Manufacturers are most often not familiar with the needs of consumers and trends in trade.
In this regard, the need to improve the marketing activities of agricultural enterprises is becoming increasingly acute.
There are three methods for improving sales:
1) solutions in the field of assortment management;
2) communications solutions (business advertising, personal selling, sales promotion, etc.);
3) transition to e-commerce.
When making decisions on the assortment, it is necessary to take into account the degree of proximity between goods of different product groups, the capabilities of the enterprise (financial, personnel, warehouse, etc.), customer requirements, and the presence of competitors.
From a financial point of view, the formation of the assortment takes into account the turnover of goods, the size of turnover and the profit received.
When studying various ways of creating or optimizing an existing assortment, they turn to appropriate methods that make it possible to determine the qualitative and quantitative structures of indicators.
To make a decision either to continue selling a product or to withdraw it from sales and exclude it from the product range, you can analyze sales indicators, market share, cost levels and profitability. A product mix is said to be too narrow if profits increase when a new product is added to the mix, and too wide if profits increase when a number of products are discontinued. Profit is a universal indicator on the basis of which you can analyze the profitability of a product group and ABC analysis.
Analysis of the profitability of an assortment group of goods is the simplest and least labor-intensive method of assortment analysis, which is based on determining profitability indicators for different states of the product range and comparing them with each other.
The product profitability indicator is the ratio between the profit received from the sale of a product and the costs of its production. Profitability is an evaluative indicator, since on its basis it is possible to determine the production efficiency of each product item and make a decision on the feasibility of its production. If you calculate this indicator for a group of products, you can evaluate the effectiveness of changes occurring in the product range. If the profitability of a product group increases, then changes in the assortment should be accepted.
ABC analysis is known in the works of Russian specialists under the name functional-cost analysis. ABC analysis is a method of structural analysis based on ranking objects according to selected indicators.
The objects in the analysis can be: individual products or product groups, individual orders and customers, regions and sales channels. The following indicators are used: sales volume, profit and cost coverage. Coverage of costs is the part of the manufacturer's revenue that remains after eliminating the direct costs of production and can be used to cover indirect costs and generate profit for the company.
This method is based on the law “80% to 20%”, discovered by the Italian economist V. Pareto. During the analysis in relation to the product strategy, three groups of products are identified according to selected criteria: production and sales, profit, cost coverage. The ABC analysis technique involves grouping ranked objects in terms of their weight to form a selected indicator. The first group, group A, is characterized by a significant contribution to the analyzed indicator, group B has an average contribution, and group C has a very insignificant contribution. Products falling into group C may be excluded from the range if this does not affect other interests of the company (range, customers, connections between products).
To develop a plan you need:
Identify the problem to be solved;
Take into account all factors (signs) related to the problem under study;
Identify the root causes that create the greatest difficulties, collect data on them and rank them.
The number of groups when conducting ABC analysis can be any, but the most widespread is the division of the population under consideration into three groups: A, B and C (80:15:5), which explains the name of the method (ABC-Analysis):
1) group A - a small number of objects with a high level of specific gravity according to the selected indicator;
2) group B - the average number of objects with an average level of specific gravity for the selected indicator;
3) group C - a large number of objects with an insignificant share of the selected indicator.
After analyzing qualitative and quantitative indicators, they begin to improve assortment management.
Improvement in the area of assortment is quantitative and qualitative changes in a set of goods to improve its rationality.
There are several methods in the field of assortment formation:
Reducing the assortment is a quantitative and qualitative change in the set of goods by reducing its breadth and completeness;
Expansion of the assortment is a quantitative or qualitative change in the set of goods due to an increase in indicators of breadth, completeness and novelty;
Assortment stabilization is a state of a set of goods characterized by high stability and a low degree of renewal. This is the ability of a set of goods to satisfy demand for the same goods (more typical for everyday food products);
Updating the assortment is a qualitative and quantitative change in a set of goods that is able to satisfy changing needs through new products.
The use of certain methods is carried out for several reasons, including:
For some products in the main range, it is necessary to have complementary products;
The product range of the enterprise is too narrow or too wide;
The activity of the enterprise with this assortment is unprofitable (low turnover);
The emergence of new needs both for the enterprise and for customers;
The need to replace obsolete goods;
The need to improve quality and competitiveness;
Falling demand.
The communication policy of most sellers is aimed primarily at the professional sales market.
The three most commonly used communication methods are:
2) sales promotion;
3) exhibitions and fairs.
The word "advertising" comes from the French word "advertisement". The advertisement itself is intended to alert different ways(sometimes all available ones) about new goods or services and their consumer properties, aimed at a potential consumer. Advertising is part of a firm's communication activities, along with sales promotion. Advertising can be used both to create a long-term, persistent image of a product, and to stimulate quick sales. She happens to be effective way wide geographical coverage of the population, but requires impressive amounts of costs.
Advertising allows you to sell a product most effectively. Risk may lead to failure, but not to disaster. Losses, if they occur, are small. And their reasons, as a rule, have nothing to do with advertising. Advertising is one of the safest, most reliable types of commercial activities that can bring big profits.
The only purpose of advertising is to sell a product. Advertising will pay off or not pay off depending on the actual sales figures. The profit from advertising must be compared with the profit from other methods of sales, and the cost of the effort expended must be compared with the result obtained. The peculiarity of advertising is its scale. Advertising is the seller's job multiplied. She addresses thousands of buyers while the seller deals with one.
The main difference between advertising and regular sales is direct contact. The seller's job is to attract attention to his product. It is impossible to ignore the seller in the store. You can simply not look at advertising. However, the seller wastes a lot of time on those customers who will not buy anything.
The creators of advertising messages try to influence all senses of a potential buyer without exception. First of all, it is vision and hearing. But there are advertising messages containing scents (“trial” perfumes), offering samples of goods that can be touched, which facilitates the process of making a purchasing decision. Traditional advertising - print advertising and advertisements in printed media information. The optimal advertising message contains only one advertising idea.
Advertising is designed to affect a person’s personal interest in solving a problem, in satisfying a need. Advertising is capable of presenting something new to the audience, arousing its curiosity; it informs the consumer about the merits of the advertised product or service and is modern method product promotion;
Sales promotion refers to the activities of an enterprise aimed at quickly increasing sales volumes.
Sales promotion can be carried out in three main areas:
1) intra-company incentives;
2) stimulation of the dealer network;
3) stimulation of consumers.
In-house sales promotion. Intra-company incentive measures are aimed at intensifying and increasing the efficiency of the enterprise’s own sales services.
Activities for intra-company sales promotion include 2 activities:
Introduction or increase in bonuses for the most active and efficient sales employees;
Implementation and improvement of the motivation system for managers of sales departments;
Changing the remuneration system for sales employees in the direction of increasing the dependence of their income on sales volume.
Stimulating the dealer network. The purpose of stimulating the dealer network is to motivate resellers to more intensively sell the company's goods, order larger quantities of goods and make regular purchases.
Methods of stimulating the dealer network include:
Increase in dealer discounts;
Measures to stimulate consumers (increasing demand for goods among end consumers is an excellent incentive to intensify the activities of intermediaries);
Introduction of multi-level marketing systems;
Conducting special dealer lotteries and drawings.
Consumer promotion is the most common and widely used area of sales promotion.
Stimulating consumers can pursue the following goals:
Convincing hesitant consumers to make a purchase;
Increasing the volume of product consumption per customer;
Encouraging consumers to consume regularly;
Reduced seasonal fluctuations in consumption.
To achieve these goals, the following techniques are used:
Providing discounts to customers (Christmas discounts, end-of-season discounts, etc.);
Conducting lotteries;
Conducting product presentations. Presentations are designed to clearly demonstrate the advantages of the product. If food and beverage products are presented, consumers usually have the opportunity to taste them;
Sale of goods on credit;
Giving gifts to customers. For the purchase of a certain product or several products for a certain amount, the company can give the buyer a gift (an additional unit of product or something else);
Issuing coupons to customers. If the buyer makes a purchase for a certain amount, he is given a coupon certifying his right to receive a discount on his next purchase;
Guaranteeing buyers a refund if the product does not meet the buyer's expectations. The only conditions for such a return are the safety of the goods and not exceeding a certain period from the date of sale;
Thousands of businesses present and sell their products at trade shows and fairs, allowing them to demonstrate products, offer relevant information, answer questions, compare competing brands, place orders and generate new leads.
A fair is a large exhibition where manufacturers of various goods in a given industry present their products to buyers, as well as other industry representatives. An ideal exhibition should be colorful, spectacular and unusual. Spectator participation is encouraged whenever possible. If viewers can press buttons, look at pictures and ask questions, then the exhibition will be a great success. Businesses also use exhibitions to promote their products. Exhibitions are inaugurated and may include museum exhibits, historical displays, prototypes of new products such as new cars, models of buildings and other structures.
Currently, most often, a fair (exhibition) is considered as a short-term event, periodically held, usually in the same place, in order to attract a significant number of firms (exhibitors) from one or more industries presenting samples of their goods (exhibits) for their demonstrations, familiarization and conclusion of trade transactions.
The main objective of the exhibition is to demonstrate achievements in various fields human activity and concluding direct trade deals based on samples. The main buyers at fairs, as a rule, are representatives of the wholesale trade, and at exhibitions, end consumers.
By participating in a fair or exhibition, each company wants to use specific events to achieve its main goal - ensuring effective business activities in the long term. In terms of improving the distribution of goods, the main three goals of participation are usually:
Search for new trading partners;
Assessing the effectiveness of the existing distribution system;
Creation and improvement of the activities of retail chains.
To ensure an effective product promotion policy, the goals for participation in fairs and exhibitions may be:
Creating a high image of a product or service;
Activation of individual elements of the promotion policy;
Creation of a corporate image;
Increase in sales volumes in the short term;
Presentation of the company and its products;
Expanding the number of clients, etc.
Exhibitions allow you to show products to your target audience, create trade prerequisites for subsequent contacts with the help of sales personnel, provide a large amount of information about competitors and help build relationships. The atmosphere of such events tends to be relaxed; Free goods are distributed and many business parties are organized. In an environment where all companies are trying to provide a clear picture of their products to potential customers, competitors can easily compare quality, features, prices and technology.
The Internet is a new, fastest growing and incredibly attractive virtual market for goods and services for any type of business. Having absorbed the characteristics of many traditional means of communication and, at the same time, not being their sum, the Internet is not a copy, but an alternative to the real world. The main characteristic The Internet is interactivity, or in other words, the possibility of feedback/interaction. The interactivity of the Internet and its technical capabilities to store unlimited amounts of information create ideal conditions for searching, collecting, organizing and distributing information, including commercial information. Companies can create on the Internet both virtual stores, which are functionally no different from regular ones, and representative sites of an advertising and informational nature.
E-commerce tools enhance direct selling capabilities by enabling real-time transactions. The success of real-time direct selling is determined by:
A new way to promote a product in the form of interactive contact with customers;
Creating new sales channels for existing products that are directly connected to customers;
Creation of additional purchasing services (the ability to receive detailed information in real time, intelligent agents can respond to standard requests within a few seconds, etc.);
Strengthening the brand and image of the company, which is greatly facilitated by the Internet;
Carrying out customer-oriented strategies that allow you to change the configuration and set of product components in real time;
Changing the order system, which reduces the possibility of error through the introduction of an order monitoring system;
Reducing time and costs for order fulfillment.
An electronic store has nine main advantages compared to a regular store:
1) increase in sales volume;
2) expansion of the sales market;
3) reduction of production costs;
4) ahead of competitors, since the process of transmitting information takes only a few seconds;
5) trade with other countries;
6) work anywhere on Earth. All transactions are carried out online;
7) work at any time of the day;
8) the ability to work on several unrelated projects. You can open several stores on the Internet, each of which can perform its own task;
9) competition on equal terms with giant corporations and at the same time obtaining certain benefits.
The company’s specialists annually work to expand and update the range, improve product quality, packaging design, and the use of packaging materials. Based on the study, the following recommendations were developed:
When organizing product sales, it is necessary to conduct research in the field of marketing - to systematize data on what consumers prefer to buy. One of the most suitable methods for conducting this type of research, taking into account the fact that the sale of goods is carried out over the counter, is an oral survey and questionnaire. Using such methods, it is possible to identify consumers’ desires to buy goods from a particular manufacturer without significant costs;
pay special attention to the quality and appearance of products. Taking into account the fact that goods that reach the store counter travel a long way from the manufacturer in Germany to Chelyabinsk. Sometimes this route passes through Moscow or other Russian cities. It is subject to repeated reloading, and in connection with this, the integrity of the packaging becomes defective, which negatively affects its appearance and subsequently causes consumers to have an unfavorable attitude towards the company as a whole. In this case, if the product itself is not damaged, and only the packaging is defective, you can invite the company to package the product itself.
To increase sales, it is necessary to provide high-quality personnel training. Since the company deals with food products, the personnel must be highly qualified and knowledgeable in this field of activity. Each employee of Mir LLC, when hired, undergoes a specialized product knowledge test. In addition to the company’s proprietary test, you can offer training for sales consultants in additional courses on business communication with clients.
Well, these people directly deal with the company’s clients, this will help improve the company’s image and, as a result, increase sales.
When setting prices, it is necessary to adhere to the strategy of unrounded prices whenever possible. In each assortment group, the company needs to determine the basic product that satisfies the basic needs of consumers.
Intensify advertising and other methods of product promotion and sales promotion. The company "Mir" LLC is currently placing its advertisements in various print publications of the urban settlement. Rich Saby and Sabinsky region, which are magazines and newspapers. An additional means of advertising may be Business Cards enterprises. All proposed measures will improve financial condition LLC "Mir" Ulyanov I.P., Popova L.V. Detailed accounting and prices. - M., 2009.
The most important indicator reflecting the final financial results activity of the enterprise is profitability. The main reasons for the decrease in the efficiency of the enterprise are:
- - increase in the cost of purchased raw materials, materials, services due to barter prices;
- - the actual cost of finished products is higher than market prices in the region due to the insolvency of consumers of finished products;
- - a large share of the cost is occupied by the cost of heat and electricity.
To increase the effective activities of Mir LLC, the following measures are being taken: contracts are concluded for the future with consumers of finished products in other regions of the Russian Federation, who pay for the shipped products in cash through a bank account. An analysis of the production and economic activities of Mir LLC showed a decrease in efficiency indicators.
This means that the company has significant reserves for increasing sales volumes of its products. To involve these reserves in the production process, the possibilities of reducing costs in all respects, improving product quality, and improving the use of enterprise funds must be studied. Based on the identified opportunities, specific activities are developed that cover all aspects of the organization’s activities. Positive aspects in the organization’s activities can be considered a sufficient material and technical base, fairly strong connections with suppliers. To realize the potential of the organization, it is necessary to attract new qualified employees. The project describes the main sales channels for Mir LLC products.
Research has shown that the enterprise mainly uses direct sales channels, but for some products indirect sales channels are also used, for example, single-level sales channels, vertical marketing systems and others. The main sales strategies used by the enterprise for more efficient marketing of its products are considered, and new sales strategies are proposed that are advisable to use for some types of the enterprise's products. To improve the management efficiency of the trade and intermediary activities of Mir LLC, the diploma project examines methods for increasing the efficiency of the company's sales activities. Mir LLC needs to develop new types of activities in order to attract bank loans to finance part of the costs necessary to equip the enterprise with modern technological equipment and saturate it with a product range.
The analysis revealed that the Mir LLC enterprise cannot rest on its laurels and be content with the results achieved. The most promising strategy is to conduct the necessary marketing research to find new markets and buyers.
It should be carried out in several directions:
- 1. increasing the volume of products sold by improving the range of products, their quality, and the release of new products;
- 2. increasing the range of new products purchased by the enterprise;
- 3. the price of products is set depending on the prices of competitors, slightly lower than them, discounts are possible for regular customers;
- 4. sales are carried out under direct contracts with customers in accordance with their orders;
- 5. organizing more effective advertising - expanding the advertising campaign by increasing the number of advertisements in various publications;
First of all, it is necessary to pay due attention to marketing activities, that is, carry out the necessary marketing research to search for new markets and buyers. Develop management measures accounts receivable, as its growth is observed. To do this, we can recommend developing a system of discounts for various customers. Thus, theoretical study topics of the marketing approach to product sales and development practical recommendations can help Mir LLC improve its financial position and market position.
Introduction
With the transition to market relations, sales policy, market research, improving product quality, and sales management play an increasingly important role, that is, what constitutes the essence of the content of the concept of marketing.
It is known that the greatest success in the market is achieved by those manufacturers who are engaged in product marketing and have significantly expanded their activities beyond the boundaries of purchase and sale. Their responsibilities include both monitoring production processes and non-production stages, including advertising.
It is in marketing programs that there are measures to improve the product and its assortment, study buyers, competitors and competition, ensure pricing policy, generate demand, stimulate sales and advertising, optimize distribution channels and sales organization, expand the range of services provided, as well as their improvement.
Currently, it is the consumer, with all the many shades of his needs, that attracts the attention of commodity producers. Successful sales of products is the final and main goal of an enterprise of any form of ownership, which is why the proposed topic of work is relevant.
The main and determining factor in the well-being of a company is the market, or rather the buyer. Ultimately, all the activities of the company find their concentrated expression in his position.
When forming a sales policy, the manufacturer faces problems related to the choice of channels for selling products and their improvement, setting prices for goods, and studying the competitive environment. In order to ensure maximum satisfaction of demand for manufactured products, the manufacturing enterprise needs an optimal scheme for delivering products to the consumer.
The purpose of the final qualifying work is to improve the organization of sales activities of a trade organization.
To achieve this goal, it is necessary to solve the following tasks:
study the theoretical foundations of organizing sales activities in modern conditions;
explore the methodology for determining channels for selling goods;
determine sales functions and methods;
reveal the organizational and economic activities of the enterprise;
analyze the sales activities of the enterprise, having previously revealed its organizational and economic characteristics;
study the methods of the organization's sales policy;
determine areas for improving the organization’s sales activities and determine the effectiveness of the proposed measures.
The object of the study is Stik LLC, Blagoveshchensk.
The subject of the final qualifying work is the sales activities of Stik LLC.
When writing the work, methods of comparative analysis, economic-statistical method, balance sheet method, observations and surveys were used.
The main sources of information are annual reports for 2007-2009, statistical reports on trading activities, reports on sales of goods, financial plans, technological maps, documents used in the activities of the enterprise, reference books and literary publications on marketing.
1. Theoretical foundations for organizing the sale of goods in market conditions
1.1 The role of the enterprise’s sales activities
In the process of marketing activities, the sales problem is solved already at the stage of developing the company's policy. The most effective system, channels and sales methods are selected in relation to specifically defined markets. This means that the production of products from the very beginning is focused on specific forms and methods of distribution, the most favorable conditions. Therefore, the development of a sales policy is aimed at determining the optimal directions and means necessary to ensure the greatest efficiency of the process of selling goods, which presupposes a reasonable choice of organizational forms and methods of sales activities aimed at achieving the intended final results.
In countries with developed market economies, the share of sales and commercial operations of industrial firms is constantly growing. Industrial firms that have created a well-functioning sales apparatus have a great competitive advantage.
The development and justification of a sales policy involves solving the following issues in relation to a specifically selected product:
− selection of sales channels and methods, method and time of entering the market;
− selection of a sales system and determination of the necessary financial costs;
− determination of the product distribution system and costs for delivery of goods;
− determination of forms and methods of sales promotion.
According to Gerchikova I.N. when developing a sales policy, specific methods of working with consumers are analyzed and developed, and the most effective means recommended for implementing the sales policy are identified.
These include:
skills and preferences of end consumers regarding the nature of distribution: wholesale, retail, parcel trade;
fame and reputation of the company, consumer attitude towards the company’s trademark;
availability of connections and contacts with potential buyers;
forms of attracting the attention of a potential buyer to a new product;
customer assessment of a new product and analysis of customer reviews about its technical and economic indicators and other characteristics.
When forming a sales policy, it is of great importance to resolve the issue of improving methods of working with end consumers. In this case, the main role is given to the assessment of implementation costs technical means customer service (receiving orders), computer technology for accounting for goods received at warehouses and sold to consumers through the retail network or directly from the warehouse.
Resellers, especially large firms, have their own sales network - dealers; have their own material and technical base - warehouses, shops, showrooms, maintenance and repair shops; equipped with computer equipment for constant accounting and control over the quantity of products sold through stores, and the availability of spare parts in warehouses. They have the ability to deliver the required spare part to a dealer anywhere in a matter of hours.
When choosing a reseller, research is necessary the following questions:
− the volume of services provided by the intermediary to the manufacturer;
− the intermediary’s attitude towards the manufacturer’s brand;
− the possibility of increasing sales with the help of an intermediary;
− expenses necessary to support the intermediary;
− location of the intermediary in relation to clients;
− the degree to which the intermediary’s practices comply with the manufacturer’s requirements;
− participation of an intermediary in sales promotion activities;
− financial position of the intermediary;
− forms of management of an intermediary company;
− the amount of expenses in connection with the use of an intermediary;
− the attitude of the intermediary to the activities of the competitor;
− regularity of payment of bills by the intermediary;
− the amount of market information provided by the intermediary;
− presence of complaints from end consumers about the work of the intermediary;
− efficiency of transactions performed through an intermediary.
When selling industrial goods, it is possible to send a written proposal to a potential buyer, enter into negotiations or consider a specific proposal from the seller (offer), as well as establish personal contacts at an exhibition or in a showroom.
When selling consumer goods, it is, first of all, choosing the most suitable and reliable reseller.
The correct choice of how to enter the market largely depends on the following factors: experience in the market; the presence of business connections with counterparties in the market; the availability of suitable intermediaries or other trading partners in the market; fame and reputation of the company in the market; availability of infrastructure on the market and its features.
The development of a sales policy is preceded by an analysis of the assessment of the effectiveness of the existing sales system, both as a whole and for its individual elements, and the compliance of the company’s sales policy with specific market conditions.
Analysis of the sales system involves identifying the effectiveness of each element of this system and assessing the activities of the sales apparatus. Analysis of distribution costs involves comparing actual sales costs for each distribution channel and type of expense with plan indicators in order to detect unreasonable expenses, eliminate losses arising in the process of product distribution, and increase the profitability of the functioning distribution system. Not so much is analyzed quantitative indicators sales volumes by product and by region, how many are the whole complex of factors influencing sales volumes: organization of a sales network, the effectiveness of advertising and other means of sales promotion, the correct choice of market, time and methods of entering the market.
When choosing channels and sales methods, the role of each channel in the overall program of the production department, its effectiveness, the size of distribution costs, the system for locating warehouse and other service premises, as well as pricing features are revealed.
The rationale for the effectiveness of sales activities is the multivariate calculation of distribution costs and the choice based on it, optimal option in the main areas of sales activities in the market or its segment.
V. A. Goremykin points out that it is advisable for a manufacturing enterprise to assess the possibilities of marketing its products. The result of this assessment is the development of a reasonable and realistic sales policy and the selection of a sales system that covers the most significant aspects of the market, including pricing policies, measures to promote sales and promotion of goods to the market, distribution and delivery systems.
The organization of a product distribution system includes everything that happens to a product in the period of time from the moment of its production to the start of consumption.
The commodity distribution system ensures the creation of conditions under which the goods will be where they are needed, at the time when they are needed, in the quantities in which they are in demand, and of the quality (meaning safety during transportation) that they expect consumer. In addition to transport and forwarding services, this includes the organization of optimal warehousing and the creation of a distribution network, both wholesale and retail.
The sales system presupposes the presence in the structure of the company of such divisions that are directly involved in the sale of products on the market, both external and internal. The functions and scope of powers of such units are different.
Own sales system - subsidiaries and branches abroad and in their own country: production and sales; sales abroad; exported in their country.
Representatives of the company are leaders abroad and in their own country; foreign universal representatives permanent and temporary; traveling salesmen in the domestic market; sales bureaus, agencies at home and abroad; sales offices, retail outlets.
Joint sales activities - joint sales companies; joint distribution agreements; participation in sales associations and unions.
The creation of our own sales companies in a foreign target market is due to the following advantages: the ability to maintain product prices at a higher level and quickly adapt them to existing demand; savings on costs of promoting goods to the market, transportation costs and advertising; ensuring rapid and effective dissemination of information about new types of products; providing quality after-sales Maintenance; using the management and marketing experience accumulated in the parent company, which trains and retrains managers and administrators, as well as ordinary employees.
The parent company provides its own dealers with a fairly wide range of services and financial support, in particular, in organizing and conducting product displays in showrooms, at exhibitions and fairs, and in organizing permanent exhibitions of samples of products sold by the dealer. Financial support is provided to dealers by providing loans, price discounts, subsidies, advertising and sales promotion funds in the target market.
Joint ventures carrying out sales operations are created when it is necessary to take into account the specific conditions of a particular country - national legislation prohibiting the creation of wholly owned companies foreign capital; when direct contacts with buyers are hampered by existing trade rules (for example, the mandatory use of tenders in import transactions); when the market is divided between large firms or is difficult to access.
The sales apparatus of other companies is used on the basis of agreements on the sale of products through the sales system of the corresponding company.
The choice of a sales system depends on the size of the required financial costs, their feasibility and effectiveness, which is determined by comparing alternative options and carrying out appropriate calculations.
Foreign production and sales branches and subsidiaries allow large firms to more thoroughly study markets, customer demand, take into account their tastes and needs, more actively generate demand, and provide better technical service. At the same time, creating your own foreign base requires large investments, the return on which must be known in advance.
Choosing a product distribution system involves finding the cheapest and most convenient option for delivering goods to the buyer, taking into account the conditions of transportation, warehousing and storage of goods en route, loading and unloading from vehicles, reliability in terms of preservation quality indicators goods.
The term “product distribution” is used in the management activities of companies and means an integrated approach to the implementation of transport, warehouse, insurance operations and related documentation.
Product flow can have a significant impact on the size and structure of costs, especially overhead costs. Thus, costs associated with organizing the movement of goods such as metals, chemicals, fertilizers, and some petroleum products can amount to up to 25% of export revenue, in the food industry - up to 30%. The costs of moving machinery and equipment significantly affect the size of the profit.
Distribution costs in the commodity distribution system may include the following expenses:
− for the transportation of goods (transport costs), calculated as paid transport tariffs;
− for transportation of goods from the enterprise to the point of transportation (to vehicles or to a warehouse);
− for transportation of goods from vehicles to the buyer’s warehouse;
− for loading the goods at the sender, unloading at the recipient and possible transshipments along the route (stevedoring costs);
− storage of goods during transportation, repackaging, re-sorting;
− for the supply and maintenance of goods in warehouses until their sale (at auctions, from consignment warehouses);
− for packaging, labeling, documentation, insurance of goods in transit;
− to pay cargo fees at ports and border stations, pay taxes, administrative expenses, etc.
In cases where the seller considers it inappropriate to engage in the process of goods distribution himself, he entrusts it to a freight forwarding company and pays it the appropriate remuneration.
The choice of a product distribution system requires careful consideration in terms of cost levels and achieving optimal results with comparable indicators. The most important factors are minimizing distribution costs, determining the level of service and the duration of delivery of goods to the target market and a specific buyer.
The most effective means of promoting sales in the target market: product advertising, use trademark and maintenance of sold products.
Determining the effectiveness of advertising activities involves analyzing the structure of advertising costs, both in general and by individual elements: advertising campaigns, for the use of specific advertising means, for the production of advertising materials and their distribution.
Organization of advertising activities includes: selection of the most effective advertising means for a given product and market; conducting targeted advertising campaigns; placement in periodicals of carefully crafted advertisements, open and indirect advertising, customer reviews of the product; use of specialized newspapers and magazines, reference books, scientific journals for advertising purposes; holding promotional events for journalists, scientists, medical workers about new products - equipment, achievements in the field of science and technology; use of a trademark for advertising purposes.
The effectiveness of advertising activities is determined by analyzing the following indicators: advertising costs per thousand potential buyers for each medium and type of advertising; the percentage of buyers who paid attention to the advertisement and purchased the product; the popularity of the company's products as a result of advertising activities. Determining the effectiveness of advertising also involves determining the extent to which advertising promotes sales. This is done by relating the costs of advertising activities to the results achieved with its help (increased sales volume). Such an analysis contributes to the correct choice of advertising media and the timing of its implementation, as well as more reasonable planning of financial advertising costs when developing a marketing program. The organization of a maintenance system plays a primary role in determining the company's sales policy, since the company's position in the market depends on its functioning. A good organization of technical maintenance attracts buyers more than high technical and economic characteristics of a product when quick and qualified repairs are impossible.
Effective customer service requires a high level of warranty maintenance and repair; Providing customers with customer service, long-term guarantees and free services.
An assessment of the financial resources necessary to organize a correct and effective system of customer service involves calculating the costs of creating and equipping service stations, spare parts warehouses, repair shops with modern computer equipment, providing qualified personnel to mobile workshops that provide services at the place of use of the product, and others. costs that are taken into account when developing a marketing program.
Among the most important methods of sales promotion is also the system of generating consumer demand and their needs. This system involves establishing personal contacts with consumers at points of sale, at business meetings, presentations, symposia, at exhibitions and fairs, targeted distribution of company catalogs and prospectuses, display and demonstration of goods. First of all, machinery and equipment in operation with a view to specialists and company managers, provision of goods for temporary free use to potential consumers, sale of goods on credit and with installment payments.
A large diversified company needs a multi-channel sales system that has its own characteristics in each target market. But such a system is being created sequentially, step by step.
On initial stage When sporadic export deliveries are carried out, there is no need to create a specialized apparatus; they are handled by the sales department of the production department. As the volume of exports increases, it becomes necessary either to create an export department or to use independent export firms located in their own country.
At the second stage, when a stable entry into a foreign target market is planned, it becomes necessary to select an independent reseller based on the goals and strategy developed for this market. It is possible to use several intermediaries of different categories simultaneously.
Subsequently, the reseller who has proven himself in the best way may be granted the exclusive right to sell products in his assigned territory. After establishing well-established stable connections, it is possible to introduce a representative to the board of an intermediary company, and then to acquire a controlling stake in the intermediary company and include it in the manufacturer’s sales system as a branch or subsidiary.
1.2 Selecting a distribution and sales channel
Merchandise planning is the systematic, informed decision-making regarding the physical movement and transfer of ownership of a product or service from producer to consumer, including transportation, storage and transactions.
Product distribution (distribution) functions are carried out through channels that include all organizations associated with the movement and exchange of goods and services, which are participants in distribution channels or intermediaries.
The decision to choose a distribution channel is one of the most important decisions that enterprise management needs to make, since the characteristics of the chosen channel significantly influence all other decisions in the field of marketing. In terms of its importance, the goods distribution system is comparable to such important internal factors as production, research, and the level of technical support.
Moreover, it constitutes a significant part of the entire policy adopted in the company, the foundation for building all long-term relationships.
It takes a long time to build good relationships with channel members. When they are already formed, it is quite difficult for a new enterprise to maneuver, and it is easier for an old one to organize the sale of new products. The choice of channels also affects costs and profits. An enterprise that takes on all the functions must pay for them: accordingly, it receives all the income.
An enterprise that uses independent (external) channels can reduce the relative costs of product distribution; however, it has a lower and relative profit since the relevant sales organizations have to get their share. In this case, overall profits can increase if the sales enterprises help to increase sales compared to what the enterprise itself can achieve.
A distribution channel is a set of individuals and legal entities that assume ownership of goods or services as they travel from producer to consumer.
Distribution channel members perform the following functions:
Research work (gathering information for planning and improving exchange);
Sales promotion (creation and dissemination of information about the product);
Establishing contacts (establishing and maintaining contacts with existing and potential customers);
Adaptation of goods to buyer requirements (sorting, installation, packaging);
Negotiating (agreeing on prices and other conditions for the active transfer of property);
Organization of goods distribution (transportation and warehousing);
Financing (finding and using funds to cover the costs of operating the channel);
Risk acceptance (acceptance of consequences and responsibility for the functioning of the channel).
There are two main types of product distribution:
Direct distribution channels are associated with the movement of goods and services from producer to consumer without the use of independent intermediaries. They are most often used by businesses that want to control their entire marketing program, want close contact with consumers, and have limited target markets.
Indirect distribution channels are associated with the movement of goods and services from the manufacturer to an independent participant in the distribution of goods, and then to the consumer. They usually attract companies that, in order to increase their markets and sales volume, are willing to give up many sales functions and costs. Because indirect channels involve independent participants, it is necessary to develop an overall marketing plan and distribution of responsibilities. In contractual agreements, all conditions relating to product distribution, prices, etc. are clearly specified in writing for each participant. For example, a manufacturer and a retail store may sign a contract specifying delivery times, volume discounts, commissions, payment terms, advertising and handling support, and display labeling. With a controlled channel, the dominant enterprise in the product distribution processes is the leader, who plans the marketing program and distributes responsibility. Depending on the balance of power, the leader can be a manufacturer, wholesaler or retail store. Distribution channels are characterized by the number of channel levels.
Channel level - any intermediary who performs some work to bring the product and ownership of it closer to the final recipient.
Four levels of distribution channels are distinguished and used in practice.
The zero-level channel consists of the company producing the product and the direct consumer. In this case, the following methods of direct selling are used: peddling trade, mail order trade, trade through one’s own retail network. A single-tier channel involves a single intermediary, usually a retailer in the consumer market.
Two-level channel - includes two intermediaries, a wholesaler and a retailer. Three-level channel - three intermediaries, i.e. wholesale, small wholesale and retail traders. The company chooses the length of the channel depending on market conditions.
The strongest is the zero-level channel, called the marketing channel, consisting of the manufacturer selling the product directly to the consumer. Direct sales without intermediaries is optimal if the product requires complex after-sales service, is not subject to additional processing in the warehouse, if the consumer is concentrated in one or two regions, the difference between production costs and the market price is sufficient to ensure high costs for direct sales, if the price is not is subject to frequent changes, so the use of a large number of market experts is not necessary.
Although the direct marketing channel is the simplest, it is not necessarily the cheapest. In the case of a fairly diverse range of products and a large number of markets, economic feasibility dictates the study of more complex types of distribution channels.
From the manufacturer's point of view, the longer the channel, the more difficult it is to control its functioning. In a corrupt economy, intermediate links in the management system can serve as a source of profit through higher prices for consumers, without creating any value for them. It is impossible to effectively manage a distribution channel without selecting and motivating intermediaries. The main goal of management is to achieve long-term partnerships - such that all channel participants can make a profit. Individual participants must be assessed periodically to ensure they meet certain requirements.
When choosing a distribution channel, the main condition is its availability for the manufacturer. To achieve commercial success when using a particular distribution channel, you need to carefully analyze all financial issues. It is necessary to conduct a comparative description of the enterprise's costs for possible distribution channels. These costs include: costs for recruiting and training sales personnel; Administrative expenses; costs of advertising and sales promotion, organization of product distribution, including costs of transportation and warehousing; level of commission payments. It should be borne in mind that at the initial stage of the enterprise’s operation, sales costs increase, but they are not permanent.
A comparative assessment of the cost of individual distribution channels should also be linked to the prospects for growth in sales volumes of goods. It is also important to note that the choice of a distribution channel is usually associated with the conclusion of long-term agreements between counterparties. The wrong choice of distribution channel can lead to the cancellation of legal agreements, which, of course, will affect the results of the enterprise and the intermediaries involved in this agreement. The commercial relationship of the manufacturer with intermediaries is secured by a contract, which stipulates the responsibilities and obligations of the parties in the event of losses or unclear performance contractual obligations, the amount of commissions and bonuses, etc. The conclusion of a contract with an intermediary serves as the legal basis for resolving disputes and disagreements. The contract usually includes a clause prohibiting the intermediary from making any changes to the product without the written consent of the manufacturer. To guarantee the uninterrupted sale of products, as a rule, a clause is introduced obliging the intermediary to purchase a certain number of products and spare parts immediately after signing the contract in order to create a warehouse stock. The contract must specify in detail and precisely the procedure for its termination. In world practice, the following reasons are considered valid and to a certain extent justify the actions of the initiator of termination of a contract: gross violation by any party of the articles of the contract, bankruptcy of one of the partners or his self-liquidation, frequent violation of payment terms. When preparing a draft contract with an intermediary, it is advisable to familiarize yourself with already concluded contracts, with the practice of drawing them up at other enterprises, to analyze their advantages and disadvantages, and the reasons for disagreements that arise between the parties.
Once distribution channels have been selected, enterprise management is faced with a number of tasks to successfully manage these channels. The solution to each of them pursues a specific goal and is achieved by specific methods.
Intermediaries occupy an intermediate position between manufacturers and consumers of products and do not always establish close contact with suppliers, preferring to communicate with consumers. The reason for conflicts that sometimes arise between suppliers and intermediaries is the latter’s belief that they do not receive sufficient assistance from suppliers in training staff, organizing promotional materials, etc. Intermediaries, in particular wholesalers, want manufacturers to sell goods to them, and not through them, since the latter case the manufacturer views intermediaries not as consumers whose needs must be studied and satisfied. Selling through wholesalers means that the manufacturer pays the main attention to end consumers, and the needs of intermediary organizations are of little importance to him. When organizing work with intermediaries, such issues must be analyzed and taken into account. This will help create good relationships between manufacturers and intermediary organizations.
1.3 Sales functions and methods
Within the framework of the national economic division of labor, the sales sector assumes certain functions.
Procurement functions. The sales sector, by changing agricultural raw materials in form, space and time, makes them ready for consumption. Changes in form occur as a result of processing, standardization and packaging of goods; changes in space are a consequence of the spatial separation of producers and consumers; changes over time - due to the gap between the time of purchase of an agricultural product and the time of sale of goods ready for consumption. The time difference is especially pronounced in seasonal agricultural products and products that can be stored for more than a year.
Exchange functions. The marketing sector can reduce costs for both the producer and the consumer by providing information about products and prices, for example through informational advertising and product standardization. The functions of exchange will be fulfilled only if the goods can satisfy consumer demand at any time and in all places of sale. This requires the formation of an appropriate product range.
When implementing the exchange function, the amount of general economic costs should tend to a minimum, which means minimizing the total costs of exchange of goods that must be borne by producers, trade and consumers.
Functions for reducing transaction costs. The sales sector is faced with the task of helping to reduce the costs of finding a market partner. The manufacturer of a certain agricultural product may face high transaction costs if he himself must look for the final consumer. Inclusion of the sales sector in the commodity distribution chain (for example, the creation of sales organizations) makes it easier for rural producers to sell products.
The following factors influence the reduction of transaction costs. Availability of information markets. The ability to quickly and cheaply obtain information, other things being equal, is determined by the availability of communication systems in the national and international economy. If a country has a poor telephone network, trade develops slowly and inefficiently. The use of modern information transmission systems helps reduce transaction costs.
Possibility of free movement in the economic space. When trading between countries and regions, transaction costs depend on the length of travel and the ability to travel when needed. Travel may be necessary to inspect products or establish business relationships. With the formation of a domestic market, transport costs are reduced and trade develops.
Developed legislation. If the legal system is not well developed, the risk involved in the exchange process increases. As a result, transactions between business entities do not always lead to satisfactory results.
Selection of sales routes. If processors of agricultural products are not able to obtain the required quantity of homogeneous raw materials of the desired quality and at the desired time, then the exchange of products through the market can occur with high transaction costs. In these cases, processing enterprises seek to enter into supply contracts with agricultural producers. Agricultural producers are also interested in similar forms of vertical integration.
If we are talking about homogeneous (uniform) products, the properties of which can be described using standards, transaction costs will be low: in this case, it is easier for the seller to change trading partners without high costs. The influence of consumer demand here is less significant than in relation to inhomogeneous (heterogeneous) goods, in which changing a trading partner may be associated with increased risk and costs.
Risk insurance and limiting capital mobility. As a rule, trade ensures the purchase of a product at one point in time, and its sale at a later date. Since the selling prices are unknown at the time of purchase, purchasing the goods involves a certain risk. At the same time, capital is tied up. Consequently, the sales sector takes on the functions of insuring risks and limiting capital mobility.
The development of the production and marketing sector is impossible without further greening of the agro-industrial complex, which makes it possible to improve the use of agricultural raw materials, eliminate their losses, and improve the quality of products. The development of marketing infrastructure (roads, storage facilities, etc.) and processing industries (food and light) is important for stabilizing the environmental situation and solving the food problem.
Currently, losses due to lagging development of infrastructure and processing industry amount to 20-30%. This means that part natural resources The agro-industrial complex, in demand for the production of lost products, is used irrationally. Losses have to be compensated by expanding agricultural production and, consequently, introducing new natural resources or increasing the load on existing ones. By eliminating losses of agricultural products and using reserves, it is possible to release significant volumes of natural resources without reducing the consumption fund (up to 30-40% of all used agricultural land).
The resource-saving path of development of the agro-industrial complex based on the development of infrastructure and the processing industry is most effective in the short term due to the deteriorating situation in agriculture.
Essentially, the formation of a rational production and marketing sector of the agro-industrial complex is an alternative option for solving environmental problems in agriculture. First, the environmental compensation costs required to eliminate the damage environment from carrying out certain activities in the agro-industrial complex (external effects), in the “raw materials-saving” investment option are minimal. Capital investments in improving the process of bringing agricultural products to consumers are practically environmentally friendly. Secondly, complete recycling and integrated use of agricultural raw materials based on low-waste and non-waste technologies in the processing industry prevent environmental pollution. Thirdly, the elimination of losses of produced agricultural products will lead to the fact that there will be no need to increase the material and technical base of agricultural production, increase gross yields of products, which will reduce the load on agroecosystems. Fourthly, capital investments in the production and marketing sector pay off faster than in other areas of the agro-industrial complex.
This direction provides for a deep structural restructuring of the agro-industrial complex, which will result in a decrease in the share of Agriculture in fixed assets, number of employees, final products of the agro-industrial complex and the growth of these indicators in infrastructure and processing industry. In order to save land and water resources, such alternative options for increasing final consumption should be used more widely.
In order for the released product to find its grateful buyer, who is ready to “lay out” money for the purchase, the manufacturer can use several sales methods.
Direct or direct sales allow you to establish direct contacts with customers without resorting to the services of independent intermediaries.
Direct sales are common in the capital goods market. Direct sales are typical for oil, coal, and machine tool companies that supply the main types of raw materials for the manufacturing industry. Direct sales allow you to maintain full control over trading operations, better study the market for your goods, establish long-term relationships with main consumers, and conduct scientific research together with consumers to improve product quality. However, it is unlikely that saving money on paying for intermediary services and direct contact with the consumer can replace high professional level the same intermediary in the sales and commercial spheres.
Direct sales are less frequently used in the consumer goods market. Firms prefer to use the services of independent intermediaries and invest funds in their core business, which brings higher benefits.
Indirect marketing is a sales method in which product manufacturers use the services of various types of independent intermediaries.
Already known intermediaries take on a significant part of the sales functions, in addition, they purchase raw materials and materials necessary for production for manufacturers, research the market and consumer demands, establish direct contact with consumers, implement policies to stimulate the promotion of goods to consumers, advertising and exhibition events .
We will show possible forms of work between a manufacturing enterprise and intermediaries.
Extensive sales - placement and sale of goods at any enterprises of resellers who are ready and able to do this.
Currently, technologically simple, small and inexpensive products of mass demand are distributed in this way. In this case, the manufacturer produces its products in large quantities and makes them available to many consumers at once through a very dense sales network.
Exclusive sales - the choice of one reseller in a given region, who will sell the manufacturer's products.
This intermediary is usually given the exclusive right to sell goods in a given region.
Selective (selective) sales - selection of a limited number of intermediaries depending on their nature, clientele, capabilities for servicing and repairing products, and level of personnel training.
This method is used when goods require special servicing, provision of spare parts, establishment of repair shops or specially trained service personnel.
This method is beneficial when selling expensive, prestigious goods that make more sense to sell in an appropriate environment.
In marketing, there are simple and complex sales systems.
A simple system - the distribution chain consists of two links - the manufacturer and the consumer.
Recently, there has been a steady desire on the part of industrial firms to get closer to their consumers. This leads to the creation and expansion of a network of own stores and the refusal of the services of an independent intermediary. A sales office is created as part of a manufacturing company. Some manufacturers sell their products through their own retail chain. This is what oil companies do when they sell fuel at “branded” gas stations; brewing companies that own beer bars; manufacturers of clothing, footwear, and some electrical household goods.
Complex system - the sales system consists of its own sales branches and subsidiaries manufacturer, independent sales intermediaries, wholesalers and retailers.
A type of complex sales system called a double channel system has become widespread. In this case, the manufacturer in the same market uses two independent or interconnected distribution channels.
A modern company manages a complex system of marketing communications (communications). It maintains communications with its intermediaries, consumers and various contact audiences.
The marketing communications mix consists of four main means of influence:
Sales promotions are short-term incentives to encourage the purchase or sale of a product or service;
Propaganda is a non-personal and unpaid form of stimulating demand for goods or services by disseminating important information about them in printed sources and the media;
Personal selling is the verbal presentation of a product during a conversation with one or more buyers for the purpose of making sales.
Let's take a closer look at the main components of the incentive complex.
Advertising is carried out through paid means of disseminating information, indicating sources of financing. Significant amounts of money are spent on it, and it is a fairly cost-effective way to disseminate information.
There are three types of advertising: informative - carries information about a new product, price changes, description of services, performs the functions of creating and maintaining a favorable image of the enterprise; Persuasive is used to change the buyer’s perception of the company’s goods, demonstrate the advantages of goods and services over competitors, and persuade the consumer to make a purchase without delay; Reminding - used to keep the product in the buyer’s memory, reminding about its exceptional properties, price, place and time of sale.
The choice of advertising medium depends on the nature of the advertised product, the size of advertising allocations, advertising goals, the scale of the advertising company, the circle of possible consumers, and the technical capabilities of advertising production.
The ever-increasing importance of advertising and its influence on the market situation should serve as the basis for firms to take their advertising activities seriously and professionally. In the marketing mix, advertising activities are usually complemented by sales promotion activities.
Sales promotion is the use of means of influencing buyers or intermediaries in order to change their preferences in favor of the goods and services of the enterprise. These include: stimulating consumers, stimulating the trade sector (trading activities), stimulating one’s own sales staff (sellers).
The solution to incentive problems is achieved using a variety of means:
distribution of samples - offering a product to the consumer free of charge or for trial.
coupons - certificates giving the consumer the right to specified savings when purchasing a specific product
premium - a product that is offered at a fairly low price or free of charge as an incentive for the purchase of another product.
credit coupons are a specific type of bonus that consumers receive when making a purchase and which they can then exchange for goods at special exchange offices.
expositions with demonstrations of goods at points of sale.
professional meetings and exhibitions.
competitions, lotteries.
In the system of marketing communications, participation in exhibitions and fairs is currently particularly widespread, promoting the promotion of goods and services on the market and increasing their sales by up to 10%.
An exhibition is a display whose main purpose is to educate the public by demonstrating the means available to mankind for the satisfaction of needs as well as for the purpose of progress in one or more fields of endeavor.
A fair is an exhibition of samples, which, regardless of its name, in accordance with the customs of the country in which it is held, represents a large market for consumer goods and equipment, operates within a specified time frame, for a limited period of time, in the same venue, and where exhibitors are allowed to present samples of their products for the purpose of making trade deals nationally and internationally.
It is difficult to draw a distinction between exhibitions and fairs. Perhaps the only difference between fairs is that they are held periodically at the same time, in the same places. Participation in exhibitions and fairs allows the manufacturer to strengthen the position of their products in the eyes of potential customers by explaining their quality features, demonstrate their products in action, provide the buyer with the opportunity to work independently and become convinced of the merits of the products, improve the company’s image, find new customers, and stimulate demand from regular customers, establish useful contacts in the business world, including with competitors, select objective information about the market, conclude profitable deals, etc.
Sales promotion, extended to customers, consists of offering them a tangible commercial benefit, which can lead to a significant increase in demand.
Incentives for various traders are aimed at improving their performance in selling goods. Incentives aimed at business partners and sales agents should encourage the latter to recommend goods to intermediaries and directly to buyers, who often show hesitation, to revive trading venues, and to intensify trade.
Sales promotion is becoming the most active form of communication policy, especially in combination with advertising. Most often, sales promotion means are used when a company sells goods that are practically no different from those of competitors, and the buyer is little sensitive to the brand of the product.
Propaganda is the unpaid stimulation of demand for a product, service or company by disseminating important information about them in all media. Propaganda included integral part in the company's activities in organizing public opinion. In this area, the company solves the following tasks: ensuring favorable publicity, building the company’s image, and countering unfavorable rumors and actions. The enterprise pursues a similar goal when implementing sponsorship events.
Sponsorship is the activity of a company providing Money individuals or organizations involved in sports, culture, healthcare, education, etc.
Personal selling is direct interaction with one or more potential buyers.
This activity is carried out by traveling salesmen or simply sales agents. Their work includes: identifying and assessing potential buyers, preliminary preparation for the visit, approaching the client and demonstrating the product, overcoming objections, concluding a deal.
In conclusion, it should be emphasized that in a specific situation, certain forms of marketing communications can play different roles. Moreover, only their use together allows one to obtain the greatest results.
2. Assessment of sales activities of LLC "STIC"
.1 Organizational and legal characteristics of Stik LLC
With the development of a market economy, cooperatives, firms, and small enterprises began to appear. Free from the centralized way of managing, they had to work in new harsh economic conditions. Not everyone survived the competition. Time has tested one's resilience; only the most hardworking, energetic, and purposeful remained. One of such enterprises is the team of the company “STIK”, whose general director is Natalya Sergeevna Storozhkova.
Storozhkova N.S. works on the basis of a private entrepreneur certificate No. 15893 RP dated December 15, 1998, issued by the Administration of the city of Blagoveshchensk. The main legislative act regulating the entrepreneurial activities of citizens ( individuals), is the Civil Code of the Russian Federation.
Enterprise PBOYUL Storozhkova N.S. engages in the sale of food products. The company is committed to providing and meeting the needs of the population of the Amur region and the Far Eastern region in quality products food of a wide range, making a profit and providing staff with jobs.
The main efforts are being made to create a powerful distribution network, including: our own retail network, a small wholesale system and a large wholesale system.
The goals of the enterprise are to expand the market for goods and services, as well as to make a profit.
The main areas of activity at present are:
Trade and procurement activities;
carrying out wholesale, small wholesale, retail trade, opening stores;
provision of buildings and premises for rent;
commercial activity.
All of the above activities are carried out in accordance with the current legislation of the Russian Federation. The main contracts for the supply of food products are drawn up in the name of PBOYUL Storozhkova N.S., she is also the consignee of the goods, after which the food products are distributed between the divisions of the entrepreneur himself: the trading department, the delivery department, small wholesale trade, and the retail stores of the individual entrepreneur Storozhkova N.S., located in the city of Blagoveshchensk.
The main activity of the enterprise is wholesale and retail trade in a wide range of food products:
confectionery;
Tea coffee;
oil and fat products;
canned fruits and vegetables, meat and fish;
juices and drinks;
The company has its own production and warehouse base, a developed distribution network, and established relationships with the largest food suppliers in the region, as well as clients throughout the Amur region. The company is located in the city of Blagoveshchensk - the administrative center of the Amur region, at the address st. Tekstilnaya, 47 building 4. It has its own production and warehouse base, 7 wholesale warehouses with a total area of 5000 sq.m., 3 retail stores, a department for delivering goods to retail stores in the city and throughout the Amur region. The company's sales representatives work with most stores in the city (350 stores) and the region (200 stores). At the moment, fifteen motor transport units operate within the city and in satellite cities in the Amur Region. Moreover, sales representatives serve wholesale bases and small wholesale markets in the city.
Today, at the enterprise of Storozhkova N.S. There is a tendency to increase the number of sales representatives and expand activities within the region and in satellite cities.
The main work of the company in selling goods in the region is focused on selling goods from wholesale warehouses. Sales of goods by sales representatives account for 40% of total sales of food products. Stable prices, regular deliveries, a flexible system of discounts - this is to attract regular customers. Some of them work under contracts. Clients are provided with one-time and cumulative discounts. In addition, the company offers clients: deferred payment, free delivery of goods, advertising support.
There is a good market reputation. Business cooperation has been established with many suppliers and buyers.
The mission of the enterprise is to provide and satisfy the needs of the population of Blagoveshchensk for a wide range of high-quality food products, make a profit and provide staff with jobs.
The plans and prospects of the company can be formulated as follows:
Increasing market share;
conquering new markets;
creation of a powerful distribution network, including our own retail network, a small wholesale system and a large wholesale system;
complete customer satisfaction;
opening of an automated supermarket.
It is worth noting that the main goal of at this stage development is to increase competitiveness. In addition, tactical goals can be defined as:
Receiving a profit;
constant analysis of consumers, market conditions, competitors;
expanding the range of products offered;
reduction of company costs;
gaining competitive advantages;
sales growth;
improving the level of organization of trade and technological processes.
2.2 Economic characteristics of the activities of Stik LLC
To get an idea of the scale of activities of Stik LLC, the features of its activities, it is necessary to analyze the main indicators of the enterprise’s activities (Table 1). Indicators are presented and calculated based on financial reporting data.
Table 1 - Main indicators of the size of Stik LLC for 2007-2009.
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Index |
Ratio 2009 to 2007, in % |
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1 Cost of commercial products, thousand rubles. |
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2 Average annual cost of fixed assets, thousand rubles. |
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3 Average annual balance of working capital, thousand rubles. |
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4 Average number of employees, people. |
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5 Energy capacity, hp |
During the analyzed period, commercial output increased by 6.1% compared to 2007.
The average annual cost of fixed assets increased by 2.1% in 2009 and amounted to 57,276 thousand rubles compared to 2007.
The average annual balance of working capital did not increase significantly by 1.5%, the average number of employees of the enterprise increased by 10.5% in 2009 compared to 2007.
Thus, Stik LLC is a small enterprise.
The number of employees increased by 8 people and in 2009 amounted to 84 employees.
The energy output also increased by 6 hp. and in 2009 amounted to 1032 thousand rubles.
The Stick chain of stores has a well-established range of products, the choice of which is determined by the needs of consumers.
The structure of the main product groups is presented in Figures 1, 2 and 3.
Figure 1 - Structure of trade turnover in 2007
According to Figure 1, the largest share in the enterprise's turnover in 2007 was occupied by meat and fish food products, and the smallest by 0.1% sugar.
Figure 2 - Structure of trade turnover in 2008
According to Figure 2, the largest share in product turnover in 2008 is occupied by meat and fish products - 33.0%, as in 2007, and the smallest by 1.0% - sugar and milk and fermented milk products.
Figure 3 - Structure of trade turnover in 2009
In the structure of trade turnover in 2009, the largest share is occupied by meat and fish products - 20.0%, and the smallest - 4.0% by other groups of goods.
From the figures it can be seen that Stik LLC receives the greatest income from the sale of meat and fish products, and the least from the sale of other types of goods. The structure of trade turnover has changed over three years. Thus, in two years the range of goods has expanded, and by 2009 the shares of trade turnover of all goods are distributed almost evenly.
Let's analyze the composition and structure of fixed assets of Stik LLC using the indicators presented in Table 2.
Table 2 - Composition and structure of fixed assets
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Fixed assets |
Deviation 2009 to 2007 |
Growth rate % |
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Industrial and production fixed assets |
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a) buildings |
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b) structures |
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c) equipment |
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d) cars |
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Total fixed assets |
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incl. active part (item 1c + item 1d) |
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As the table data shows, for the period 2007-2009. the availability and composition of fixed assets has changed significantly. Throughout the study period, there was an increase in fixed assets.
Equipment is growing at the fastest pace, their value increased by 2.5 times, as a result, the value of the active part increased by 67.02% and in 2009 amounted to 8,453 thousand rubles. The cost of machinery and buildings also increased by 16.34% and 8.48%, respectively. .
In 2009, the cost of fixed assets amounted to 57,276 thousand rubles, of which the active part was 8,453 thousand rubles.
The largest share in the total volume of fixed assets is occupied by buildings. Their share compared to 2007 decreased by 2.23% and in 2009 amounted to 70.86%.
The share of the active part of fixed assets increased slightly - by 4.87%.
Coefficients reflecting the efficiency of use of fixed assets are presented in Table 3.
Table 3 - Analysis of the efficiency of use of fixed assets of Stik LLC
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Index |
Change from 2009 to 2007 |
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absolute |
growth rate, % |
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1. Average annual cost of fixed assets, thousand rubles. |
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2. Average annual number of employees, people. |
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3. Sales revenue, thousand rubles. |
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4. Net profit, thousand rubles. |
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5. Capital productivity, rub. (item 3 / item 1) |
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6. Capital intensity, rub. (clause 1 / clause 3) |
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7. Capital return, rub. (item 4 / item 1) |
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The efficiency of use of fixed assets decreased due to the fact that the average annual cost of fixed assets increased by 11.9%, and revenue increased by 6.14%. In 2009, by 1 rub. fixed assets accounted for 4.6 rubles. revenue, which is 0.25 rubles. lower than it was in 2007. Accordingly, the capital intensity of production increased by 4.76%.
If in 2007 21 kopecks of fixed assets were spent per 1 ruble.
revenue, then in 2009 it was 1 kopeck more. There was also a decrease in fund profitability. In 2007, by 1 rub. fixed assets accounted for 9 kopecks of net profit, and in 2009 it was 6 kopecks or 66.67% less. Thus, we can say that there is a decrease in the efficiency of using fixed assets at the enterprise.
The labor resources of a trading enterprise are an important economic reserve.
Let's consider the composition and structure of labor resources for the three reporting years of Stik LLC.
Table 4 - Composition and structure of labor resources
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Index |
Ratio of 2009 to 2007 |
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absolute, people |
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Managers |
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Specialists |
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Employees |
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Average annual number, total |
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As can be seen from the table, labor resources include workers, managers, specialists and employees.
During the period under study, the average annual number of employees increased by 8 people and in 2009 amounted to 84 people.
The growth in numbers is associated with an increase in the number of employees by 6 employees (their number in 2009 was 44 people) and an increase in the number of specialists by 2 employees (their number in 2009 was 12 employees). The number of managers and workers remains unchanged throughout the study period. Analysis of the efficiency of use of labor resources is presented in Table 5
Table 5 - Analysis of the efficiency of use of labor resources
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Index |
Change from 2009 to 2007 |
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Absolute (+,-) |
growth rate, % |
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Sales revenue, thousand rubles |
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Labor productivity, thousand rubles/person. |
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Labor intensity, people/million rubles |
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From the calculations it follows that labor productivity decreased by 129.57 thousand rubles per employee and in 2009 amounted to 3138.23 thousand rubles. The decrease in labor productivity is associated with the faster growth rate of the average number of employees than the growth rate of sales revenue; accordingly, labor intensity increased by 3.23%.
We will present the assessment of financial activity using the indicators in Table 6.
Table 6 - Analysis of financial activities at Stik LLC Thousand rubles
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Index |
Change from 2009 to 2007 |
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absolute, (+,-) |
growth rate, % |
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Revenue from sales of goods, thousand rubles. |
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Cost of goods sold, thousand rubles. |
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Gross profit, thousand rubles. |
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Selling expenses, thousand rubles. |
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Profit from sales, thousand rubles. |
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Balance of other income and expenses, thousand rubles. |
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Profit before tax, thousand rubles. |
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Net profit, thousand rubles. |
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Generally financial activities enterprises tends to decline. Only in 2008 was a positive trend in profit indicators noted. During the period under study, revenue from the sale of goods increased by 15,258 thousand rubles, cost increased by 21,766 thousand rubles. Due to the fact that the growth rate of revenue is lower than the growth rate of cost, gross profit tends to decrease. For 2007-2009 it decreased by 6,508 thousand rubles or 43.69% and in 2009 amounted to 8,387 thousand rubles. Commercial expenses also decreased by 2,196 thousand rubles or 44.33%. Accordingly, sales profit also has a negative trend. If in 2007 this value was 9941 thousand rubles, then in 2009 it decreased by 43.38% and amounted to 5629 thousand rubles.
Profit before tax in 2009 decreased by 45.8% and amounted to 3,613 thousand rubles. The net profit in 2009 amounted to 1999 thousand rubles, which is 2596 thousand rubles or 56.5% lower than in 2007.
Profitability indicators characterize the final results of business more fully than profit, because their value reflects the ratio of the effect to the invested capital or consumed resources. They are used to assess the performance of an enterprise and as a tool in investment policy and pricing. Let's calculate the main profitability indicators, which we summarize in Table 7.
Table 7 - Profitability indicators of Stik LLC in percent
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Index |
Deviations |
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1 Profitability of services provided |
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2 Return on sales |
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3 Net profitability |
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Continuation of table 7 |
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4 Economic profitability |
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5 Return on equity |
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6 Return on permanent capital |
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An analysis of the profitability of the activities of Stik LLC revealed the presence of positive indicators with a downward trend in the reporting period.
The return on sales indicator shows the share of net profit in the company's sales volume. In 2009, this figure decreased by 2 times compared to the previous year and amounted to 2.14 rubles. However, the positive point is that the indicator is not negative.
The return on equity indicator allows you to determine the efficiency of capital use; it shows how many monetary units of net profit earned each unit invested by the company's owners.
This indicator at the enterprise in question is of greatest importance compared to other indicators, but here there is also a downward trend (in 2009, compared to 2008, it decreased three times). For 1 rub. equity capital in 2008 received 11.27 rubles. profit, and in 2009 - only 3.59 kopecks. This indicates low efficiency in the use of equity capital.
It should be noted that the dynamics of all indicators in 2009 had a negative sign, so the return on equity and return on permanent capital suffered the greatest decrease - by 7.68% and 6.14%, respectively.
This drop in indicators is associated with a reduction in the organization’s net profit in 2009 by 4,222 thousand rubles. in comparison with 2008, which is associated with an increase in the enterprise’s production costs.
2.3 Organization of sales activities of Stik LLC
The supply and sales activities of Stik LLC are carried out by the trading department, the organizational structure of which is presented in Figure 4.
Having considered organizational structure trading department, which has retained its structure since 2004, when Stik LLC sold a smaller number of goods, and the department’s work system met the modern market requirements of that period, we can come to the conclusion that the existing organizational structure of the trading department requires improvement due to the following reasons:
The sales manager is responsible for providing the plant's stores with its products and controls the completeness of its assortment. Every day, he accepts applications from store managers for the supply of products of the relevant types, controls the shelf life of products supplied to stores.
The responsibilities of the sales manager include working with wholesalers: solving problems related to non-compliance with contractual obligations on one side or on both sides. Wholesalers are interested in both product quality and shelf life.
Sometimes conflicts occur when receiving products from the warehouse. It is not profitable for storekeepers to keep products with an expiring shelf life and they try to “push it out”, not taking into account the fact that it will remain in transit for some time until it reaches the consumer. Such conflicts are resolved through the sales manager. The employees of the finished goods warehouse are subordinate to him, therefore, the sales manager himself has the right to impose various penalties for such an attitude towards the buyer.
From production, finished products are delivered to the finished goods warehouse, from where they are released to customers and delivered to the plant’s stores.
Storekeepers receive products from production, release them to customers and forwarders of the enterprise, keep records of the quantity of all types, and monitor storage periods.
The paperwork for receiving products from the warehouse begins in the control room. Control room workers maintain contact with the finished product warehouse. Control room workers, based on this data, prescribe products to customers. The control room employees accept applications for products from buyers in advance. Applications are submitted in writing to the finished product warehouse. If the quantity of any type of product is not enough to fulfill orders, warehouse workers transfer it to production, so that they, in turn, can prioritize the release of a certain type of product.
Such statements of products in the control room, buyers issue an invoice in the machine-accounting bureau, which is headed by a senior operator.
If the buyer transfers money to the company's current account, the operator issues an invoice immediately for presentation to the storekeepers. If the buyer takes products for cash, then a receipt note is attached to the invoice. With these documents, the buyer goes to the cashier to pay, then to the accounting department, where the invoice is registered and signed and sealed, and only after that the invoice is presented to the storekeepers to receive the products.
Supply agents, every day, at the very beginning of the day, accept requests from stores for the supply of necessary goods. Orders are executed promptly, since the continuity of the trading process of Stik LLC depends on this. Ensuring the trade process and its continuity is one of the main tasks of supply workers. To perform this task, supply agents are required to keep careful records of goods in the warehouse, recording production needs for each type of goods (standards of consumption of goods for each type of size). Supply agents control not only the timely delivery of goods, but also their quality. The range of products sold is expanding every year. The task of supply workers is also to purchase goods of appropriate quality and at the lowest cost, in order to save money allocated by the enterprise for supply.
The sales promotion objectives of Stick LLC arise from the objectives of product marketing. The specific incentive objectives will vary depending on the type of target market. Among the tasks of stimulating consumers are encouraging more intensive use of the product, purchasing it in larger packaging, encouraging people who do not use the product to try it, and attracting those who buy competitors' brands to it. For retailers, this includes encouraging them to introduce a new product into their product line, maintaining higher inventory levels of the product and related products, undermining competitive incentives, creating brand loyalty among retailers, and expanding into new retail outlets. outlets. As for your own salespeople, this is an incentive for maintaining a new product or new model, an incentive for them to conduct a large number of customer visits, and an incentive for efforts to raise the level of off-season sales.
We will combine the main means of incentives for Stik LLC in accordance with the object of influence (Table 8).
Table 8 - Main means of incentives
The solution to sales promotion problems at Sbyt LLC is achieved using a variety of different means. At the same time, the plan developer takes into account both the type of market, and specific tasks in the field of sales promotion, and the existing market situation, and the profitability of each of the means used.
The choice of incentives depends on the goals set. All funds can be combined into three large groups:
Price promotion (sales at reduced prices, preferential coupons giving the right to a discount);
Offers in kind (bonuses, product samples);
Active offer (customer competitions, games, lotteries).
Classification of sales markets is possible according to various signs, but it must be taken into account that with any approach to the classification of markets, the boundaries between them are conditional. Classification characteristics of the sales market of Stik LLC are presented in Table 9.
Table 9 - Classification of market types
|
Types of markets |
|
|
1. Territorial coverage |
1.1. Regional market: Blagoveshchensk |
|
2. Market mechanism of state influence |
2.1. Market with government participation |
|
3. Type of competition |
3.1. Monopolistic competition market: many firms selling similar products, influence is limited by the possibility of substitution, products are differentiated for market segments, difficult entry and exit for large firms |
|
4. The relationship between supply and demand |
4.1. Buyer's market. The buyer has a large choice of various types of a product, its limitations are related only to its desires, because There are many sellers on the market offering the products he needs. His preference is given to one product or another, depending on price, quality and service. This is where supply exceeds demand |
|
5. Degree of maturity of market relations |
5.1. Developed markets. The presence of most companies engaged in similar activities for many years. |
|
6. Compliance with market laws |
6.1. Legal market |
|
7. Product lifespan |
7.1. Medium-term goods market |
|
8. Material specifics of the product |
|
|
9. Type of consumption |
Consumer market: people with average income, regardless of social status. |
The analysis helps to identify markets for Stik LLC products. For our company, this is a wholesale and retail food market.
The sales market is limited to the city of Blagoveshchensk, buyers are the population. A compromise with smaller competitors is achieved by selling goods at large wholesale prices, which allows increasing turnover.
Partners are large wholesale suppliers of food products, with whom we have long-term business ties and in the future it is possible to plan for their orders in terms of quantity and assortment.
Difficulties in organizing a grocery business that Stik LLC faced:
a wide assortment of small goods from the point of view of their production and sale is classified as labor-intensive products.
high level of competition;
there is a feeling of insufficiency working capital to maintain a wide range of products.
At the same time, the lack of product range leads to the loss of customers.
low solvency of the population of Blagoveshchensk.
Business advantages:
a wide range of consumers;
constant demand for products;
Due to the popularity of the business, there is no need for aggressive advertising.
Advantages of Stik LLC over competitors:
Availability of a small wholesale store. Buyers purchasing goods worth more than 1000 rubles are offered wholesale prices for goods;
There is a delivery system. At the same time, delivery within the city is free of charge, subject to an order worth at least 1000 rubles;
Possibility of making an application by phone;
Sales of goods under contracts with deferred payment for 2 weeks;
A compromise with smaller competitors is achieved by selling goods at large wholesale prices, which allows increasing turnover. Discounts are provided for regular partners.
With the existing range of goods and volumes of their sales for Stik LLC: direct marketing allows you to maintain control over trading operations, better study the market for your goods, and establish long-term relationships with key consumers.
Stick LLC uses the following areas of the sales promotion system:
providing a discount for a large volume of purchased goods;
use of coupons in various printed publications;
The task of promoting the goods of Stik LLC is to create knowledge about the enterprise and a favorable attitude towards it among potential users, to consolidate consumer preference among regular customers, and then the conviction to make a purchase from Stik LLC and, finally, pushing consumers to make a purchase, for example , using a price discount. Stik LLC needs to create a prestigious image of its enterprise, which should help increase its competitiveness.
When setting prices for goods sold, Stik LLC must be guided, first of all, by its goals.
Such goals at the present stage are to obtain a certain amount of profit and strengthen leadership in terms of market share.
To segment the consumer goods market, the main features will be: socio-demographic, consumer status.
For full characteristics sales activities of Stik LLC, it is necessary to analyze the costs of selling products.
It is currently not possible to isolate the net amount of sales costs from the total amount of costs due to the lack of accounting for them, so let’s analyze the trading costs of Stik LLC and summarize the data in Table 10.
Table 10 - Characteristics of costs for trading activities of Stik LLC for 2007-2009, in thousand rubles.
|
Expenditures |
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|
Expenses for railway and road transportation |
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|
Building maintenance costs |
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|
Depreciation of fixed assets |
|||
|
Wear of workwear |
|||
|
Salary |
|||
|
Storage costs |
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|
Costs of paying for using a bank loan |
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|
Labor safety expenses |
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|
Packaging costs |
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|
other expenses |
|||
|
6294,24912,04019,3 |
|
|
According to Table 12, it is clear that the overall level of costs in 2008-2009. was declining. Thus, in 2009, costs decreased by 21.9% compared to 2007, and in 2009 by 18.7% compared to 2009. In general, in 2009 compared to 2008. costs decreased by 36.14%.
To assess the effectiveness of sales activities, we will analyze the ratio of profit from product sales (profit of the sales service) with the total profit of the enterprise. We summarize the data in table 11.
Table 11 - Assessment of the efficiency of sales activities of Stik LLC for 2007-2009.
According to the table, we can talk about the efficiency of the sales activities of the trading department: the profitability of sales during the period under review increased from 0.6% to 3.4%. At the same time, the growth rate of sales volumes in 2009 compared to 2008 was only 100.1% versus 140.5% in 2008 compared to 2007.
Thus, after analyzing the sales activities of Stik LLC, we can draw the following conclusions about the existing shortcomings:
Having examined the organizational structure of the trading department, which has retained its structure since 2004, when Stik LLC produced fewer products, and the department’s work system met the modern market requirements of that period, we came to the conclusion that the existing organizational structure of the trading department requires improvement in for the following reasons:
lack of clear delineation job responsibilities between employees of the sales department;
irrationality of building an organizational structure - three levels of management in the structure of one department do not meet modern management requirements, and therefore require improvement.
Thus, the transition to new types of activities requires a revision of the organization of work of the sales department, which will be presented in the third part of the work.
3. Improving the sales activities of Stik LLC
.1 Optimization of management of sales activities of Stik LLC
The sales functional area is the most significant for the enterprise. The receipt of funds from the market is ensured by sales. The lion's share of the enterprise's interactions with the market revolves around sales. In sales, all problems that have arisen in the strategies, management, and organizational structure of the sales service are identified.
To distribute the products of an enterprise of its own production, one or another sales division structure is used, which necessarily relies on the market through sellers, sales agents, and managers who directly interact with customers.
This interaction is a primary focus for sales optimization.
As a rule, it is most appropriate to reach large customers directly by the enterprise through sales agents. This method allows you to make large profits by eliminating unnecessary links. In addition, large buyers under normal conditions prefer to work directly with the supplier.
Average buyers are served by agents or dealers, depending on the specifics of the enterprise.
The most progressive way to cover the market with the help of agents is currently considered to be territorial division.
The logic of sales development for a manufacturing or large wholesale trading enterprise involves reaching first of all large buyers, then medium-sized ones, and finally small ones.
The structure of the enterprise is evolving, first focusing on creating an agent network, and then a dealer network and a network of its own branches.
The interaction between an agent, a dealer and its own branch is competitive in nature, since their activities are aimed at the same territory. sales products merchandising optimization
Therefore, it must be organized especially carefully, reflected in the sales management structure.
Improving the management of sales activities currently seems possible in two directions: improving the sales system of goods, namely the management of the sales department, and expanding sales markets.
This is necessary primarily due to the start of active activities of competitors, which forces Stik LLC, despite the increase in sales volumes in past periods, to quickly respond to changes in the external environment.
In accordance with the indicated areas for improving sales, we present specific measures developed for Stik LLC.
Based on the results of the enterprise’s work, it is proposed to expand the sales activities of the enterprise in the Far Eastern region in the cities of Zeya, Zavitinsk and Chita.
This decision was made based on the results of a study of sales markets of Stik LLC.
The first step in improving the sales activities of an enterprise should be to improve the organizational structure of the sales department.
Since production and sales volumes are increasing, and, as was revealed in the second part of the work, the existing structure of the sales department needs to be improved, we will develop the organizational structure of the sales department of Stik LLC (Figure 5).
Let us provide a rationale for the need to introduce staffing units for the sales department (see Table 12).
Table 12 - Advantages of introducing staff positions
|
Name of staff unit |
Main objectives and advantages |
|
Office Manager |
Increasing the level of customer service aimed at increasing the quantity of goods purchased at a more expensive price. |
|
Retail Outlet Manager |
Maintaining an adequate level of inventory in warehouses with the appropriate assortment, ensuring sustainable and uninterrupted operation retail outlets, this will lead to satisfying the needs of a larger number of customers, which will avoid losing part of the possible profit. |
|
Wholesale Account Manager |
This person must find the optimal approach to institutions, create a base of enterprises, and offer the right product at the right time. The result of the work will be an increase in the number of repeat purchases, as a result of which revenue will increase. |
|
Dispatcher-cashier |
Answer telephone calls from customers, informing them about the availability of goods for sale; make payments to customers in the wholesale trading floor. |
|
Regional Relations Manager |
Based on ongoing market research, organize the enterprise’s own sales network, ensuring uninterrupted supply of products in the right quantity and at the right time. |
|
Marketer |
Conduct market research and analysis, marketing and sociological research commissioned by the head of the sales department. |
|
Sales Manager |
Coordination of the work of sales department employees; Based on sales analysis, plan such requests for production, the quantity of products of which is successfully sold according to demand. |
For the competent and efficient operation of the sales department, job responsibilities were developed for each manager in order to specify their work. Thus, the ability to control the actions of each department employee is enhanced.
Since the existing sales department of Stik LLC does not have a clearly developed strategy, as part of the course work we will develop the following strategic directions for the marketing activities of the sales department:
1) research into possible markets for products in the Far East.
This research should be carried out by a marketer. The research should be carried out through analysis of newspapers in the Far Eastern region, Internet resources, specialized literature, and statistical collections. Thus, a special archive would be created to study the situation on the ice cream market in the Far East. Weekly replenishment of the archive will make it a practical guide for managing the activities of the sales department in terms of developing a long-range marketing strategy;
2) analysis of suppliers.
Participation of Stik LLC as a manufacturer in various fairs and exhibitions allows us to establish connections with new suppliers. Positive past experiences with existing suppliers strengthen old ties. The work of regional representatives produces results in the form of reliable and decent suppliers. Criteria for selecting a supplier: level of quality, delivery conditions, previous business relationships, offer price, possibility of cost reduction.
This is very important, since the sales department will enter into a supply agreement with the supplier under its own responsibility.
) competitor analysis - once a week, collect information on prices, assortment and advertising activities of competitors in the Amur region. Monthly analyze the marketing policies of competitors in relation to pricing, assortment and advertising strategy. Possession of complete, reliable information about the activities of competitors will allow you to most accurately and successfully plan the overall marketing strategy of the enterprise and maintain a leader position in the market of the Amur region;
4) the sales department will be responsible for pricing goods of Stik LLC. Pricing should be based on an analysis of competitors, profitability of goods, turnover of funds, etc.
The general directions of the sales policy of the sales department of Stik LLC for the next six months are:
· increase in sales volumes, and consequently, profits from the sale of goods;
· expansion of the company's sales network - entering the Far East market;
· carrying out image events to attract more buyers and strengthening existing relationships;
· carrying out research in the field of sales of manufactured products and collecting information on customer satisfaction.
So, to ensure the normal operation of the department, you need to purchase the following equipment (see Table 13):
Table 13 - Costs of creating a sales department
So, the cost of creating a sales department will be 87,500 rubles. Monthly staff salaries and transport rental will be 125,000 rubles. But these costs are fully recouped, as evidenced by the calculation below.
3.2 Improving product sales channels
Due to the fact that Stik LLC is currently expanding the range of goods sold, the need to expand the sales department is urgent. To determine the effectiveness of investments in new labor resources, you can calculate the forecast market capacity and potential income.
Let us calculate the possible market capacity for the sale of goods in the cities of Zeya, Zavitinsk and Chita.
Information on the population in these regions is presented in Table 14.
Table 14 - Population in potential branch cities of Stik LLC
* the average number of people in a family is 3.5 people.
The activities of Stik LLC in selling goods in selected regions will be aimed at the entire market, satisfying the needs of as many customers as possible.
Potential consumers are all segments of the population, regardless of gender, age, income level or marital status. They will make purchases regularly and often to satisfy their needs.
Let’s assume that on average, families purchase goods worth 146,000 (400 rubles x 365) rubles, and singles purchase 54,750 rubles. Thus, we obtain the potential market capacity (see Table 15).
Table 15 - Calculation of the potential market capacity in potential cities - branches of Stik LLC in thousands of rubles
From the calculations it follows that when selling goods in the cities of Zeya, Zavitinsk and Chita, the potential market capacity as a whole increased by 18,419.63 thousand rubles.
Thus, the potential income of Stik LLC determines the need to expand the sales department and expand the channels for selling goods.
4. Life safety
.1 Occupational safety
4.1.1 Analysis of the organization of labor protection work
Overall responsibility for the state of labor conditions and safety at Stik LLC rests with the employer. Heads of production departments have the following functional responsibilities for labor protection:
determining lists of professions and jobs that require preliminary and periodic medical examinations;
determination of a list of heavy work in which the use of labor by women of childbearing age and persons under the age of 21 is prohibited;
familiarizing the employee with the conditions and labor protection in the workplace, with the possible risk of damage to health, with job responsibilities, including labor protection requirements, with benefits and compensation for working conditions;
determining the list of professions and positions of workers exempt from initial training at the workplace, the list of jobs that are subject to additional (increased) labor safety requirements;
conducting occupational safety briefings;
familiarization of managers and specialists with the state of working conditions at the site, protective equipment, injuries, regulations and job responsibilities for labor protection;
development and provision of workers with labor protection instructions and production instructions;
developing lists of jobs and professions for which personal protective equipment should be issued, and monitoring the correctness of their use;
organizing first aid for the victim and delivering him to a medical facility;
reporting an accident to designated addresses;
development of measures to prevent accidents, improve and improve working conditions, bring workplaces into compliance with the requirements of labor standards and regulations;
certification of workplaces;
equipment production premises, equipment and workplaces using collective protective equipment and organizing their effective operation;
organizing control over the level of harmful and dangerous production factors;
Providing workers with sanitary facilities and devices based on the specifics of production.
Functional responsibilities of heads of enterprise services:
HR Department:
organizing a preliminary medical examination upon entry to work;
determination of the population subject to periodic medical examinations;
professional selection of working individual specialties;
determination of a list of heavy work with harmful or dangerous working conditions;
familiarizing applicants with benefits and compensation for working conditions.
Supply Department:
provision of enterprise divisions with protection, control and alarm means.
Accounting:
payment to the employee of compensation for damage caused by a work injury;
implementation of compulsory insurance of employees against temporary disability due to illness, as well as against industrial accidents and occupational diseases.
Department of the Chief Power Engineer:
security electrical networks and electrical installations.
The distribution of functional responsibilities for labor protection among management personnel is supported by the publication of an order for the enterprise.
4.1.2 Analysis of the level and causes of injuries and morbidity
To study the level of labor safety, we will analyze the level and causes of accidents and the organization of labor protection work.
Let's calculate injury rates. The frequency rate shows the frequency of injuries and is calculated using the following formula:
where N is the number of accidents per year,
P - average number of employees.
The following injury severity coefficient is calculated using the formula:
where D is the total number of working days lost as a result of accidents. The loss coefficient is determined:
Injury rates are shown in Table 16.
Table 16 - Injury level indicators at Stik LLC
|
Index |
Average over 3 years |
|||
|
Number of accidents |
||||
|
Days of disability associated with injuries, days |
||||
|
Payments for temporary disability associated with injuries, rub. |
||||
|
Days of disability associated with illness, days. |
||||
|
Payments for temporary disability related to illness, rub. |
||||
|
Average number of employees, people. |
||||
|
Expenditures on labor protection, thousand rubles. |
||||
|
Accident frequency indicator, Kch |
||||
|
Injury severity index, CT |
||||
|
Indicator of lost working days, Kn |
On average, over three years, payments for temporary disability for 1 day amounted to 571.67 rubles. Expenditures on labor protection amounted to 83 thousand rubles per year. The accident rate was highest in 2007, with an average of 25.5 accidents per 1,000 workers. The injury severity rate in 2009 increased by 14 days compared to 2007 and increased by 11 days compared to 2008. 2008 had the highest rate of lost workdays. On average it was 210.84 days per 1000 workers.
Thus, based on the data in the table, we can talk about a reduction in injuries.
To prevent accidents at an enterprise, it is necessary to identify the causes of their occurrence, to take into account all the shortcomings and take measures.
Table 17 - Causes of accidents at the enterprise
|
Violation of safety requirements when operating vehicles |
||||
|
Unsatisfactory content and shortcomings in the organization of workplaces |
||||
|
Violation of labor and production discipline |
||||
Thus, to reduce accidents, it is necessary to strengthen control over compliance with labor discipline, use workers only in accordance with their working qualifications, and improve the reliability of machinery and equipment. A total of 6 accidents were recorded between 2007 and 2009.
4.1.3 Calculation of the economic consequences of injuries and morbidity
Let's determine the economic consequences of injuries and morbidity.
The total losses of the enterprise associated with injuries and illnesses (Is) for the analyzed period are determined:
(4.4)
where is the amount of losses associated with injuries;
