best buy sales plan
TRANSCRIPT
![Page 1: Best Buy sales plan](https://reader036.vdocuments.mx/reader036/viewer/2022081801/55ce95d8bb61eb9f208b47cf/html5/thumbnails/1.jpg)
Best Buy: Sales PlanAMY CABAÑAS, NICK MAURER, GABRIEL OLIVEIRA AND MIQUEL SUBIRÀ
![Page 2: Best Buy sales plan](https://reader036.vdocuments.mx/reader036/viewer/2022081801/55ce95d8bb61eb9f208b47cf/html5/thumbnails/2.jpg)
MARKETING STRATEGIES• By introducing Amazon’s products to our stores, we expect to create a
unique opportunity for customers to be able to try those products before buying, which they will only find in Best Buy.
• With that, we expect to increase both sales revenue and customer relation with this unique experience.
• Also, we aim this to give us a big competitive advantage to compete with major brands like Samsung, Apple, and Microsoft.
• We strongly believe that bringing these products that are only available to be purchased online and sell them in a store is something that adds much value to the consumer.
• Without extending this part of the project more than we should we are going to introduce the products that we are going to sell in our company.
![Page 3: Best Buy sales plan](https://reader036.vdocuments.mx/reader036/viewer/2022081801/55ce95d8bb61eb9f208b47cf/html5/thumbnails/3.jpg)
• Our main goal is to bring Amazon’s products to Best Buy to reach a very concrete target market.
• We plan to implement this stratedy just in the Saint Louis Region.
• Increase Sales Revenue from 8% to 10%.
• Increase Sales by $25,000,000 by 2015.
• Guarantee the Return on Investment.
• We estimate these yearly increases will double each year of the 5 year forecasting we projected.
OUR GOALS
![Page 4: Best Buy sales plan](https://reader036.vdocuments.mx/reader036/viewer/2022081801/55ce95d8bb61eb9f208b47cf/html5/thumbnails/4.jpg)
SALES REVENUE FORECASTING
$ 220,000,000 25000 Square Ft/Per store in St Louis terr. $880 per square feet 2013
$ 230,000,000 25000 Square Ft/Per store in St Louis terr. $920 per square feet 2014
$ 250,000,000 25000 Square Ft/Per store in St Louis terr. $1000 per square feet 2015
$ 290,000,000 25000 Square Ft/Per store in St Louis terr. $1160 per square feet 2016
$ 330,000,000 25000 Square Ft/Per store in St Louis terr. $1320 per square feet 2017
$ 410,000,000 25000 Square Ft/Per store in St Louis terr. $1640 per square feet 2018
![Page 5: Best Buy sales plan](https://reader036.vdocuments.mx/reader036/viewer/2022081801/55ce95d8bb61eb9f208b47cf/html5/thumbnails/5.jpg)
2013 2014 2015 2016 2017 20180
50000000
100000000
150000000
200000000
250000000
300000000
350000000
400000000
450000000
SALES REVENUE PER ST LOUIS STORE
Series1
Year
Sale
s
![Page 6: Best Buy sales plan](https://reader036.vdocuments.mx/reader036/viewer/2022081801/55ce95d8bb61eb9f208b47cf/html5/thumbnails/6.jpg)
SALES FORECASTINGBEST BUY STORES ST LOUIS
TERRITORY (10) STORES
2-Aug-13 2-Aug-14 2-Aug-15 2-Aug-16 2-Aug-17 2-Aug-18
Revenue $
220,000,000 $
230,000,000 $
250,000,000 $
290,000,000
$
330,000,000 $
410,000,000
Cost of goods sold
$ 16,831,000
$ 16,845,220
$ 16,823,650
$ 16,835,699
$
17,567,890 $
18,900,789
Gross profit $
203,169,000 $
213,154,780 $
233,176,350 $
273,164,301
$
312,432,110 $
391,099,211
Gross profit % 23.7% 26.4% 31.6% 36.2% 41.4% 46.3%Selling, general and administrative expenses
$ 24,200,000
$ 25,245,000
$ 27,500,000
$ 23,456,000
$
21,879,000 $
18,987,000 SG&A % 11% 11.2% 11% 10.7% 11.8% 10.2%
Restructuring charges
$ 10,290,000
$ 9,500,000
$ 5,303,700
$ 4,597,700
$
3,567,009 $
2,456,999
Operating income
$ 17,200,000
$ 26,802,800
$ 49,009,800
$ 54,677,000
$
75,879,000 $
98,567,008 Operating income % 7.6% 11.6% 19.6% 27.6% 31.6% 35.7%
![Page 7: Best Buy sales plan](https://reader036.vdocuments.mx/reader036/viewer/2022081801/55ce95d8bb61eb9f208b47cf/html5/thumbnails/7.jpg)
STRUCTURE OF SALESFORCE•Vertical structure.
•Characteristics: Flexible and Transparent.
•Organization:•Regional Marketing Manager.•Store Sales Manager. (10)•Best Buy Salespeople. (20)
![Page 8: Best Buy sales plan](https://reader036.vdocuments.mx/reader036/viewer/2022081801/55ce95d8bb61eb9f208b47cf/html5/thumbnails/8.jpg)
ORGANIZATIONAL STRUCTURE
![Page 9: Best Buy sales plan](https://reader036.vdocuments.mx/reader036/viewer/2022081801/55ce95d8bb61eb9f208b47cf/html5/thumbnails/9.jpg)
RECRUITING PROCESS• The recruiting will be done within the company using current Best Buy employees.
• Amazon will not be involved in recruitment but will be in training.
• That is why we plan to use our company Intranet to advertise nationwide for these positions
• We want candidates who share the values of the company and have the specific required skills.
![Page 10: Best Buy sales plan](https://reader036.vdocuments.mx/reader036/viewer/2022081801/55ce95d8bb61eb9f208b47cf/html5/thumbnails/10.jpg)
SKILLS FOR NEW HIRES
• They need to be prepared to work past their scheduled time, working weekends, coming in early, multi-tasking.
• Demonstrate immense knowledge of electronics, preferable some knowledge of Amazon products, not a necessity, since we plan to train.
• How good they are at working with others to get a job done. We think of our company as one big team, so they will need to share that philosophy.
• Show that they can handle an issue if there is no sales manager available.
• Must not become overwhelmed if the store gets inundated with customers and another department needs assistance, even if they’re not familiar with that particular product.
![Page 11: Best Buy sales plan](https://reader036.vdocuments.mx/reader036/viewer/2022081801/55ce95d8bb61eb9f208b47cf/html5/thumbnails/11.jpg)
TRAINING PROCESS• Teaching the employees that selling the complete solution and asking for the sale is key.
• Knowledge of the new content that is being brought to our products and how to manage it.
• Understanding how to implement any changes.
• Asking questions to understand a need for the desired product to be top on their list of things to know in detail.
• To have a efficient and controllable process, the Regional Marketing Manager will train once a month doing role playing with the employees.
![Page 12: Best Buy sales plan](https://reader036.vdocuments.mx/reader036/viewer/2022081801/55ce95d8bb61eb9f208b47cf/html5/thumbnails/12.jpg)
SALESPERSON JOB DESCRIPTION
• Knowledge of Amazon’s products, as well as, competitors’ products.
• Be kind to the customer even if they don’t buy the product. If they have a good experience in our store then they become a return customer.
• Attend to the customer complaints and act with care and good Customer Service.
• Attend all periodic training sessions.
•Meet the sales quota of Amazon products monthly.
![Page 13: Best Buy sales plan](https://reader036.vdocuments.mx/reader036/viewer/2022081801/55ce95d8bb61eb9f208b47cf/html5/thumbnails/13.jpg)
BEST BUY’S SALESPERSON QUOTA
Product
Monthly Quota per Sales
Person
5 Smartphone
10 Kindle Fire HD 7’ Tablets
10 Kindle Fire HDX 7’ Tablets
10 Kindle Fire HD 8.9’ Tablets
10 Kindle Fire HDX 8.9’ Tablets
1 Fire TV
46 TOTAL
![Page 14: Best Buy sales plan](https://reader036.vdocuments.mx/reader036/viewer/2022081801/55ce95d8bb61eb9f208b47cf/html5/thumbnails/14.jpg)
COMPSENATION PLAN
When developing the compensation plan, we focused on two main goals: • To maintain high service quality with sales people carrying excellent product knowledge and customer service skills. • To keep the sales people motivated by giving an above average salary plus exceptional benefits.
![Page 15: Best Buy sales plan](https://reader036.vdocuments.mx/reader036/viewer/2022081801/55ce95d8bb61eb9f208b47cf/html5/thumbnails/15.jpg)
SALARY AND BONUSES
•Salary = $9.30 per hour of service.
•Additional 5% above retail on any product Best Buy offers.
•One-time only 75% coupon on any Amazon products per sale.
![Page 16: Best Buy sales plan](https://reader036.vdocuments.mx/reader036/viewer/2022081801/55ce95d8bb61eb9f208b47cf/html5/thumbnails/16.jpg)
SALES CONTEST INCENTIVE
• 1st Place • 4 nights at the
Bahamas• $4,000 in store
credit
• 2nd Place• 2 nights trip to Las
Vegas• $2,000 in store
credit
• 3rd Place• 2 nights at a spa
resort in St. Louis Area
• $850 in store credit
![Page 17: Best Buy sales plan](https://reader036.vdocuments.mx/reader036/viewer/2022081801/55ce95d8bb61eb9f208b47cf/html5/thumbnails/17.jpg)
Thank you for your
attention.