Analysis of Sales Performance and Improvement Suggestions

Question: Describe about the Analysis of Sales Performance and Improvement Suggestions. Answer: Section 1: Company Performance Formula Used BEMC has organized a total of 200 trade fairs in the first half of 2016, earning a total profit of 85,126 AUD. The company has 4 sales representatives who help the company is bringing in customers and selling them stand space and also in selling tickets to visitors. In return, BEMC pays them for their efforts. BEMC saw a total of 141 customers; a few among them were repeat customers in the 200 trade fairs. Income sources for BEMC include the following - Organizing Exhibitor stand Organizing Exhibitor travel Organizing Exhibitor accommodation Organizing Exhibitor marketing material Organizing Exhibitor hospitality Commission on rent Revenue from sale of tickets Expenses for BEMC Fees paid for all activities related to organizing Wages and Commission paid to sales representatives Formula used Revenue sale of tickets = No. of tickets sold x 1.5 AUD Total Rent for a trade fair = Rent (per square meter) x Total Area (square meter) Commission received by BEMC (on space rent) = Commission % x Total Rent for a trade fair Wages paid to a sales representative = 60 AUD x Number of hours spent by the sales representative at work Commission given to a sales representative = Commission % x Commission received by BEMC (on space rent) Profit = Income - Expense Section 2: Performance of Trade Fairs Below graph shows the total gross profits earned by a particular category of trade fair. It can be seen that food trade fairs top the list while manufacturing trade fairs are the bottom of the list in terms of profits. Trade Fair Profit (AUD) Books 5658.8 Builders 4075.1 Clothing 13255.4 Computing 10319.6 Food 16118.1 Furniture 4604.2 Government 4080.4 HRM 4723.5 Manufacturing 1667.7 Sports 2900.6 Vehicles 2171.6 Wine 15552.5 Total 85127.5 If we plot the number of times a particular category of trade fair is organized by the company, then it can be seen that Food and wine trade fairs are the most number of times organized by the company in the half of year 2016 and hence the revenues are high from these categories. Thus we can calculate the profit earned by every trade fair for each category by dividing the profit earned with the number of trade fairs. From the graph below we can say that the company must focus on Books and government trade fairs as the company earns more profit from them compared to other trade fairs. Section 3: Sales Performance of Sales Representatives The table and chart below show the total profit earned by each of the representatives. It can be seen while Chris has brought the maximum profit for the company; Alex has brought the minimum profit. Sales Rep. Total Profit (AUD) Alex 11111.6 Chris 33978.1 Jane 12215.9 Luke 27821.9 Total 85127.5 If we plot the income earned by each sales representative, it has been found that Chris has the maximum income and Jane has the least income. The interesting fact is despite having a lower income, Jane has earned more profit than Alex. Income earned by each of the sales representatives for BEMC is shown below. Also if we classify the sales representative by the amount of time spent by each of them in the first half of the year 2016, it was found that Chris has spent maximum hours and hence has been able to generate more income while Jane has spent least number of hours and has lowest income. Despite having worked for least number of hours, Jane has been able to earn more profit than Alex. Thus it can be noted that Jane is more efficient than Alex. The maximum decrease will be for Chris from 33978 to 17758. While the least decrease will be for Alex from 11111 to 8825. Section 4: Profitable Customers The chart below shows the top 5 profitable customers for BEMC. It can be seen that onlyscotchco has earned the highest profit for BEMC in the first half of 2016. These customers are very important for the company and have together contributed to a total of 10% of the total gross profits for BEMC. The company must take proper measures to retain these customers and make more customers get added to the list by taking various measures and giving incentives on repeat sales. Section 5: Suggestions Should BEMC focus on any particular (a) customer(s) and (b) Trade Fair(s), in future, and why? The top five profitable customers of BEMC are kerplonk readit bottomsup magazine onlyscotchco. These 5 customers are repeat customers and have together contributed to a total of 10% of the total gross profits for BEMC. Among 12 different trade fairs, BEMC should be focusing on government, food, builders and books trade fairs. Although these trade fairs might not have given the highest total profits, these trade fairs have the highest average profits for BEMC. The chart below shows the average profits earned by the trade fairs. What are your recommendation regarding what other data should be collected to improve decision making for BEMC? Customer Expectations BEMC must know what is a customer expecting and should collect feedback from the customer to incorporate the same. This will help BEMC in having more number of repeat customers. Market rate for trade fairs BEMC must know if the fee they are charging is optimum. Since there must be competition in the market, it might be that BEMC is either charging too high and losing customers or BEMC is charging too less and thus earning less profits. III. What are your recommendation regarding record-keeping to improve the quality of data collection and management? Attendance Monitoring BEMC must ensure that the number of spent by its sales representatives is accurately monitored by some way. Any error in it can cause huge loss to the company. Centralized Data Data entry must be done by different departments and must be cross checked by other departments. For example, the number of tickets sold needs to be verified from the What changes should BEMC make regarding any currently employed Sales Representative(s), or to the fees paid to the Sales Representatives, and why? Performance Bonus As it can be observed that Chris has demonstrated excellent performance while Alexs performance has not been very good. BEMC should give targets to the sales representatives and should give them a bonus if they meet the targets. Sales Representatives should get a commission for selling each ticket. This will increase the total number of tickets sold thus bringing more profit to BEMC. Customer feedback The Company must also take in the feedback from the customers about the employees. This will help the company to incentivize the employees to take care of customers and improve customer satisfaction. The higher customer satisfaction will help in increasing the repeat sales and brand value of the company. References Levine, D.M., Berenson, M.L. and Stephan, D., 1999.Statistics for managers using Microsoft Excel(Vol. 660). Upper Saddle River, NJ: Prentice Hall. Kelley, T.J., 2002. Using Graphs and Visuals to Present Financial Information. 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