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representatives are not permitted in the individual stores (Table 14C).
Table 14C. Crazy Foods annual sales manning by customer.
5 National chains x 10 days preparation
= 50 days
5 National chains x 10 days selling
= 50 days
5 National chains x 12 days per year review
= 60 days
Total time
= 160 days
Budget implication: Salesforce manning would require one highly trained national account
negotiator. Cost around £25,000, £2000 per month. Skills defined by task requirement,
customer specialisation. Recruitment, job description all follow from the description of the
task.
Sales promotion. The company had had limited experience of sales promotion. The results
of two small scale promotions are in Table 14D.
Table 14D. Crazy Foods promotional experience.
Promotional type
Extra Cost £ per unit
% Sales uplift
Extra pack
0.03
15
Banded pack
0.05
25
The company had been asked to include promotional activity for two of the national
retailers. The plan for the year included two, 3 month periods - months 2-4, and 8-10, the
first for extra pack and the second for the banded pack promotion (Table 14E). Budget
implication: Sales promotional expenditure can be calculated as follows: Normal volume
during 3 month period for two retailers = 2.7 million units.
Table 14E. Crazy Foods promotional experience.
Expected volume uplift (for promotion)
Extra pack
405,000
Banded pack
675,000
Total volume promoted (units)
Extra pack
3,105,000
Banded pack
3,375,000
Costs of promotion (£)
Extra pack
£93,150
Banded pack
£168,875
Other types of sales promotion had not been investigated. The company had no
experience of merchandising, in trial packs, in-pack promotional items or competitions, all
of which were very successful sales promotional techniques for competitive products.
Pricing support for the distribution channel. The multiple retailers expect a gross margin of
20 per cent on yoghourt lines. Discount structures were designed to produce standard
prices in the main multiple grocers that ordered more than 20,000 units at a time. Credit
policy was to standardise on 60 days. Budget implication: Cash flow position needs to be
shown in the financial plan.
Order processing. The distribution channels expected orders to be dispatched within 24
hours, following the visit of the sales representative. The distribution channels expected to
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