home » Marketing » Develop a branch. Development of regional sales

Develop a branch. Development of regional sales

The well-being and stability of the company is directly related to the work of managers and the productivity of management. Before you upgrade, you need to work on the policy of this unit. A detailed action plan to increase sales will help to structure the workflow and achieve incredible heights.

A sales plan is a comprehensive document that formulates the basic directions, principles and methods for achieving specific goals within the framework of the company's overall commercial strategy.

The primary reasons for developing a sales development plan include:

Creation of a sales department.
Lagging behind the existing sales plan.
Transition from to "hot" clients.

The absence of a sales development plan is not critical for small-sized companies, because often employees perform the functions of several specialists. To reflect the sale of goods, a pair of schematic diagrams or graphs is sufficient.

The absence of a sales development plan is not critical for small companies, where employees often perform the functions of several specialists.

For large organizations with an impressive customer base, having a plan is a must. In them, the sales department is engaged not only in the search for potential buyers, but also in the execution of contracts and other services. Thus, the company's corporate strategy is being implemented, which provides for the promotion of the brand and the capture of a partial market share.

Primary requirements

In order for the compiled document to be useful and cost-effective in work, its creation must be approached with due attention and attitude. The key aspects of the plan to increase sales include:

Assessment of the situation. Based on macro- and microeconomic market trends, problem areas of the company's work are presented that require immediate intervention by the sales department.
Goal setting. The new strategy is determined according to the company's global business plan.
Choice of strategy. A new work tactic is being developed, aimed at improving the situation and adjusting the existing principles and ways of developing the sales department.
List of actions. A well-defined list of tasks is developed that contributes to the operational achievement of the goal both monthly and quarterly. Responsible executors are appointed.
Definition of chronological framework. The deadlines for the implementation of each task separately and the period for the implementation of the entire plan in particular are outlined. Usually it is 3-5 years.
Objective analysis. The presented algorithm of actions should be adequate and commensurate with the time, numbers and capabilities of the company.
Search for optimal means. To implement the sales plan, the most effective methods and tools (planning, reports, etc.) are selected.
Personnel planning. It turns out the required number of personnel and its compliance with the professional level.
Process automation. In order to save time and simplify work, the possibility of upgrading hardware or software is foreseen.
Plan approval.

Example in practice

There are many options for the development of work on the sale of goods. A brilliant example of sales optimization in one organization can be successfully applied in another with similar goals. Two situations will serve as an approximate sales development plan.

The first strategy is a clear division of the areas of responsibility of all managers, where each is assigned a specific task in the intended direction. The second tactic is a strict division of the sales department into two separate structures, each of which is exclusively occupied with its own field of activity: either searching for potential customers or servicing attracted customers.

The first strategy is a clear division of the areas of responsibility of all managers, where each is assigned a specific task in the intended direction.

The specifics of developing a sales development plan is that for its preparation it is important to have special knowledge, understand the optimization of each tool in the advertising environment, and analyze marketing components. From the choice of the strategy for the development of the sales department, the strategic direction of the company, the opportunities and risks of selling the goods are determined.

It is impossible to manage the sales department without a clear plan - it's like moving in an incomprehensible direction, relying only on "maybe". There should be a plan, especially if you are going to build your sales department from scratch, if you already have a department that is lagging behind on all counts, or if you are going to retrain your “salespeople” a bit - for example, from active sales to working with regular customers . In a general sense, a plan is needed for any company that wants to succeed in the market and make a profit.

The plan is a document that defines the principles, directions and ways to achieve goals within the framework of the corporate strategy.

What happens if you work without a plan?

It's okay if your company is very small - just a few employees. In small firms with a small number of employees, as a rule, the duties of several specialists are assigned to one employee, and the role of planner and appraiser is assigned to the director. Small businesses are constantly looking for new customers and retaining old ones, because the loss of even one partner can have an extremely negative impact on the company's future.

The situation is different in large firms with an established client base. Sales managers in large companies both renegotiate contracts and are engaged in recapturing a part of the market where it will be possible to promote and consolidate their brand. If this is not done, the company will very quickly move from a large company to the status of a small one.

Such an enterprise needs planning. If the director can control several employees himself, receiving daily oral reports, then a number of problems immediately arise in a large one:

the sales department cannot be controlled, there is not enough time for this;
the quality of service drops, as a result, customers leave;
talented managers go to work for competitors.

Planning the development of the sales department: preparation

1. Purpose delivery.

2. Development of an analysis system.

3. Search for means that will help achieve the goal.

4. Assessment of the situation in which your sales department is at the moment.

5. Selection of the optimal strategy.

6. The choice of specific actions that will help to quickly and effectively solve the tasks.

Planning the development of the sales department: writing a plan

1. Determine the role of the sales department in the overall corporate strategy. Yes, the company should also have a corporate strategy, and the development plan should not go against it, but, as it were, complement and serve a common goal.

2. Assign a time period for which it is necessary to implement each of the tasks, as well as the entire plan as a whole. Most often, plans are written for the next 3-5 years.

3. Examine the staffing to see if it meets the stated goal. If not, outline ways to solve the problem, hire new specialists or improve the skills of existing ones.

4. Standardize processes - whenever possible. A single standard allows you to work more smoothly, calmly, more efficiently.

5. Automate the process of interaction between the sales department and other departments, as well as with customers and partners.

6. Draw up specific stages for the implementation of specific tasks, appoint performers for them and those who will control the performers. It is advisable to schedule the stages quarterly or monthly.

To compose sales development plan and implement changes, you need to understand what exactly needs to be changed to get the maximum effect. To do this, you need to use the Pareto principle.

The world-famous Pareto principle states the importance of focusing your attention on actions that give the maximum effect. These actions make up only 20% of your efforts and give 80% of the result.

20% of your assortment provides 80% of turnover
20% of customers buy 80% of your products
20% of sales bring 80% of profit

Development plan: analyze your business

Development plan: setting indicators

As soon as you understand which employees, channels, clients bring you 80% of the result, you need to set goals in numbers.

What indicators can be included in the development plan for the sales department:

Profit amount
Managerial efficiency
Number of calls
Incoming traffic conversion
Share in client
Number of strategically important clients
Business Process Efficiency
Growth of the customer base

These indicators need to be formed, taking into account your weaknesses. If you do not work well with current customers, you need to put in place a development plan to increase your share in current customers. If you’re not converting well into sales of new customers, put indicators of work with incoming traffic or cold traffic into your development plan.

Sales department development plan: counting daily activity

The sales department development plan should include measures to analyze its current structure and, as well as their correction, if necessary.

The principles to be followed when correcting errors in the sales department are quite simple and at the same time very effective.

1. If you do not have a competent department head with relevant sales experience () in the right area, then you can be sure that you, as the owner, are losing money and wasting time. You lose money because you are simply not able to keep track of everything that happens in a commercial structure. You are wasting time, because you have to deal with the strategic development of the business, and not the operative. While you are drowning in the routine of everyday worries, competitors are bypassing you.

2. Always remember the rate of controllability. One person is simply not able to manage more than 7 subordinates. This is an immutable law of effective management.

3. If the company practices the “everyone does everything” approach, then, most likely, chaos reigns in the department, and the owner does not understand at all how his salespeople make the result.

The commercial structure of the company has 3 main functions:

lead generation - search for customers,
primary - sale to a new client,
maintenance of the current base.

It is desirable that the listed functionality be distributed among different persons. Do not allow a situation in which the seller himself finds a buyer, then sells, and then takes on ongoing maintenance.

4. In addition to the functional division, and with the proper level of business development, one should begin to allocate employees for individual special tasks and projects. There are at least 3 reasons for this.

The products are too different and their implementation does not fit well in the hands of one seller. Deeper specialization required
Target audiences are very different from each other.
Ways of sales in different territories differ dramatically.

5. Use the principle of "divide and conquer." So, if there are already more than 6 employees in the sales department, then they must be divided into 2 groups. The second group will also need a RPR. Such a step will have the most favorable effect on revenue. First, you will have a full-fledged alternative structure, and this is insurance against failure of the plan. Secondly, people will begin to compete with each other, that is, to do business.

Making a profit is the most basic goal of all commercial enterprises. Therefore, the sale of goods and services is the most important function of the company, and the development plan for the sales territory is an indispensable component of a successful business plan. For the clearest idea of how much your production will be able to sell goods in a given territory, it is imperative to understand what is:

territory potential;
sales potential in the territory;
sales forecast in the territory;
sales quota in the territory.

The maximum amount of goods or services that can be sold in a given territory is called the potential of the territory. For example, if a city has a population of 400,000 families living in apartments with electricity, then they can all buy one TV. This means that the potential of this territory on TVs will be 400 thousand for all market participants.

The quantity of a good or service that can be sold by a particular enterprise is called sales potential. Since there are competitors in a certain territory, the sales market will be divided between them and you will receive only some part of the potential of the territory.

The sales territory development plan must contain a sales forecast. This factor should take into account market constraints. Usually, the calculation is carried out with pessimistic and optimistic forecasts. The plan should include a pessimistic business development scenario, then you will hope for a profit even in the worst scenario. For example, your supplier can supply you with goods from his only warehouse for a distance of no more than 5 kilometers - these are market restrictions. For example, 2,000 of your potential buyers live within the supplier’s radius of action, and, according to optimistic forecasts, you will be able to sell 2,000 TVs, and according to pessimistic forecasts, only 500 - these figures should be included in the business plan.

Now imagine that in a given territory there are four sellers with equal opportunities selling televisions from the same warehouse to 2,000 buyers. Since they have the same rights, each of them will sell 500 units of goods. This value is sales quota TV sets in the given territory for each of the distributors.

The sales territory development plan should take into account such factors as: population growth, income level, the number of goods (or services) similar to yours in the territory, the number of other sellers of similar goods and services, and so on; given all this data, you will be able to quickly respond to all changes in the sales market.

How to Calculate Projected Sales Volume

In order to successfully develop a business in a particular industry, it is necessary to provide for a number of important stages that allow you to achieve the strategic goals of the company. That is why specialists of trade enterprises make a sales forecast, determine advertising and promotion budgets, plan purchases and detail the entire production process. Since the conditions in today's market are far from ideal (competition, percentage of purchasing power, regulations), the production process requires constant attention and timely adjustment.

In order to know how to calculate the projected sales volume, you should estimate its volume (by assortment) in the upcoming reporting period. It is necessary to take into account the size of the market, the real need for this product, the estimated number of buyers and the results of proper advertising.

Sales volume forecasting:

based on time series analysis (taking into account the trend, seasonal variations, economic cycle);
conducting a break-even analysis (constructing a schedule of fixed / variable costs and profits);
intuitive methods (peer review);
formalized methods (extrapolation, modeling);
program-target method.

Each of the above methods allows both subjectively assessing the current situation and predicting the prospects for further development. By analyzing quantitative indicators using economic and mathematical modeling, it is possible to determine the behavior of an economic object for a certain time period. Thus, the company's managers most effectively predict the activities of production, allocating its resources and ensuring the expected sales. Known forecasting schemes have advantages and disadvantages, so they are often used for short-term forecasts (month, week, quarter).

Accurate sales forecast for different periods of time:

In order to more clearly record the activities of the enterprise, it is necessary to make an accurate sales forecast, which has a deviation from the real volume of no more than 10%. To do this, calculate the seasonality factor and analyze the monthly performance of the company over the past year. If we additionally take into account the growth of production capacities, the level of influence of external factors and the sales forecast of each employee from the sales department, then we can completely optimize the functions of the company and reduce existing costs.

Sales forecasting services

The projected volume depends on the economic situation and the political development of the country. If its values are far from the real number of sales, then all budgets require changes.

The payment procedure for the provision of services that are on the account of the Ministry of Social Development and Health is being developed for a unified pricing system generally accepted for the provision of paid services. Similar rules are required for payment for over-the-counter government-supported assignments. Both legal entities and individuals are forced to comply with this charter on the same conditions.

Paid services can be provided by the institution only at fixed prices, which fully cover all costs. The organization has the right to independently determine the possibility of providing paid services, based on its material base and taking into account the qualifications and number of staff, as well as the demand directly for the service.

The institution has the right to independently determine prices for paid services, guided by the established procedure. However, the cost should not exceed the limit price predetermined by the state.

An organization providing paid services must, without fail, timely convey to legal entities and citizens reliable information with a list of services on a paid basis and the cost for each separately in a certain form.

To be able to predict sales volumes, you need to be guided by the main groups.

Point forecast based on specific numbers. It is considered the simplest, since it contains the least amount of information. However, in practice, other forecasting methods are usually used. Interval forecast implies the establishment of boundaries where values with a certain level of significance will be located. Probabilistic forecast associated with the actual value of several groups for which intervals are set. However, when creating a forecast, there is a possibility that the actual volume does not match the specified interval. Although forecasters are convinced that the proportion of probability is negligible, therefore, it is most often ignored at the time of planning.

What are the key aspects of the development of the sales department in the region.
How to conduct an analysis of the territory and business in the region.
How to develop a sales development plan.
How to implement the developed plan in the work of the enterprise.

A sharp drop in profits, the loss of key customers, a decrease in net profit and a constant staff turnover are the consequences of not sales development plan in the region. With the help of this article, you will be able to successfully develop your business throughout the territory of the company's presence.

Development of a plan for the development of the sales department

An experienced employee from the company's staff should be engaged in the development of a plan for the development of the sales department.

The company has a number of people who will cope with this task:

Commercial Director. Understands the general structure of the business, is directly interested in the result. Minus - employment commercial director, therefore, more often he acts as a controlling person.
Director of Development. Senior manager, whose duties include the development of business strategies.
Regional leader. The head responsible for sales in the region knows the structure of the enterprise and the local market well.

After choosing a responsible person, you need to start studying the main aspects of the business and analyzing its structure. The specialist must have knowledge of all business processes of the company. Direct study of program blocks can be delegated to specialized leaders. The final result is checked by senior management or the owner.

Why sales bonuses don't work and how to replace them

Find out how to build an effective motivation system in the sales department in the article of the magazine "CEO".

Key aspects in drawing up a plan for the development of the sales department

Before you start creating a document, you must conduct a business analysis. The analysis is carried out within the territory for which solutions will be selected.

In order for the document to be of high quality and applicable to other regions, it is necessary to take into account the key factors and collect them in a single report:

Conduct a marketing analysis of the territory and study market trends. The analysis will give an understanding of the weaknesses and problem areas in the company's work, as well as points for business growth.
Set Goals. Set each SMART strategy goal in percentage and monetary terms.
Develop a strategy and complete a Preliminary Action Figure (JAP). It will be easier to build on it when determining responsible persons. The result of this paragraph should be a document with preliminary tasks and responsible persons.
Determine the required budget. The implementation of the CAP will require financial investments and costs, it is necessary to analyze in advance the capabilities of the company and budget them.
Analyze financial reports. The figures for revenue, profit and profitability will be the basis for all work. Data is essential for decision making and goal setting.

Territory and business analysis

Holding SWOT and ABC analysis and will give a picture of growth points and weaknesses. It will be wise to use the Parreto principle when choosing and leave only the most effective minimum. What needs to be analyzed:

Client base. Carry out an ABC analysis of the regional battery. Identify customers who provide 95% of sales at the current moment (TOP-95 customer base). Analyze through which traffic channels these customers entered the funnel. Determine the working channels that bring in large customers. Make up client portrait from TOP-95. Conduct a re-analysis of the client base according to the received parameters.
Analysis of the profitability of goods. Analyze the distribution of products by customers from the TOP-95. Find out which products sell more often. Assess the profitability of products. Make a selection of the most profitable, compare it with the distribution in the database.
Checking the readiness of units. Calculate how much product the warehouse is ready to ship without failures. By what number of products will production be able to increase output. Carry out an audit of the sales department. You need to find out how many customers the business is ready to serve. Is the KPI set correctly at the moment, are managers coping with its implementation.
Market size and competition. Assess what market share the company currently occupies. To do this, just look at the annual sales reports for 3-5 years. And compare them with the market demand for manufactured products. Conduct a comparative analysis of the business in relation to the leading competitors. Main factors for comparison:

services and services;
brand awareness, brand trust.

Formation of goals

After determining the position of the company in the region, you need to set goals. There should be a number of criteria: points of growth and weaknesses that reduce success.

These indicators are used to form a sales development plan. But first you need to define goals and fix them in the document. The table below shows an example of goals in numerical terms for a strategy that is designed with a focus on business expansion into the market and growth of the customer base.

Indicator	Current	In the development plan	date of completion
Revenue	RUB 5.4 million	RUB 7.3 million
Profit volume	900 thousand rubles	RUB 1.4 million
Number of calls per manager per day			Monthly
Number of offered commercial offers			Monthly
Incoming traffic conversion
Number of strategically important clients
	5% per quarter	10% per quarter	Quarterly
Distribution of goods to customers	The penetration rate for each group is not less than 60%	The penetration rate for each group is at least 80%	Quarterly

The indicators are formed taking into account the need for growth and weaknesses in the business.

Sales department plan as a tool for territory development

Sometimes, to develop a business in a territory, it is enough just to “play” with indicators in tasks and KPI. The scheme is based on a notional gross margin that the company wants to earn. To get started, you need to get some data:

Profit plan for the current year.
Conversion percentage in an existing sales funnel.
Report on the margin in the context of the company's products.
Funnel stage report. Which one has the best conversion rate?
The number of leads a company can generate. Lead cost.
Average check on deals.
Managers' activity rating: calls, meetings, commercial offers, invoices.

Once the data is in, you can start applying it back down the sales funnel. First you need to set a goal for profit per month. The next stage of the funnel is to set the % conversion, which will provide the desired profit. And so on through all stages of the sales funnel from bottom to top.

Step 1. Determine how much revenue you need to generate in order to get the planned profit growth.

Step 2. Based on the data on the average check, calculate how many transactions will bring a given amount of revenue. If we consider not in transactions, but in volume by clients, how many clients need to be attracted or activated.

Step 3. Determine the required number of contacts with customers, commercial offers and issued invoices. The goal is to get the number needed to make trades on the volume from step 2.

Step 4. Having an activity plan in hand, calculate how many leads you need to generate to provide each stage of the funnel with activity.

Step 5. The figures are entered into the individual plans of sales managers and into the general plan of the sales department. Monitored on a daily basis by the supervisor.

You can download a sample sales development plan here ↓

Development plan for the sales department, taking into account structural changes

We considered a sales development plan based on direct growth factors through the development of a customer base. To complete the picture, let's analyze the planning methodology, taking into account the internal factors of the company's development.

First of all, it is worth considering the need for structural changes in the business. For this, 5 internal factors are evaluated:

Competences of the head of the sales department and managers. Compiled simple checklist for verification. Field skills are assessed. If, as a result, competencies do not meet the company's expectations, then it is likely that it is because of this that the level of revenue is reduced. Due to the weak competencies of the RPA, business management also suffers. Managers in the department are poorly supervised, this leads to errors and loss of customers.
The functionality of the commercial structure. Ideally, the OP should be involved in maintaining the client base, finding new clients and working with receivables. It happens that a number of other functions are included in the work of the OP: work with transport, warehouse, returns, etc. In such a situation, sales inevitably fall because the sales staff does not deal with them or is not fully engaged. In this situation, the KPI of employees is evaluated sales department. Sometimes, for growth, it is enough just to place the accents correctly.
Process automation and project development. Automation significantly increases the speed and quality of customer service. The CPM system will allow you to record all customer contacts and control each stage of the sales funnel. The implementation of large projects gives a sharp impetus to sales. An example of a major regional project could be participation in a thematic exhibition in order to find clients.

An example of a plan for the development of a sales department in a territory with a focus on improving the structure of the company:

Indicator	Current	In the area development plan	date
Hiring, training managers to find new clients	2 people per area	4 people per area
MBA sales manager training		Spend at the beginning of the quarter
Split the structure of the OP	The OP carries full functionality for the battery	OP - lead generation. Client Center - maintaining and servicing the client base.
Implementation of the CPM system	Minimum cloud version	Implement a batch version with installation on our server
Implementation of an auto funnel for customer lead generation through the website and social networks. networks	Missing	Prepare marketing. Implement auto funnels.

We have analyzed 2 methods for setting goals based on the results of the analysis. You can download a complete sample of a sales development plan with goals and a scheme here -

Implementation of the development plan for the sales department in work: step by step instructions

Consider the option of implementing a plan with changes in the structure and in the sales system. In the standard version, the sales department looks like this:

This OP option has many vulnerabilities when choosing a development strategy. In particular, with the search for new customers. Therefore, the task was set: to transform the structure of the department under the general management of the commercial service. Each division will have its own function - the generation of new customers and work with the existing database.