 VIT : Assessment (3) – MBA5004 Managing Decision Making Processes

DATA ANALYSIS METHOD

Increase Sales by 20 % by adding new products and Enhancing Customer Experience

Sales per month (unit)

1490
1485
6000
1600
1960

3600

12080

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Turmosynthoil GV Series Turmsilon M100 Turbo Powermax 15W40
Turmofluid HLP Series

Presented by: Presented to:

Deepak BAHADUR Victorian Institution of Technology

Abdul Rahman KAHIL

Muaamar ABOALRIJAL

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1- Table of Contents

Contents
1- Table of Contents .............................................................................................................. 2
2- Introduction ......................................................................................................................... 3
3- Initiative Steps ..................................................................................................................... 4
4- Strategies .............................................................................................................................. 5
5- Conclusion .......................................................................................................................... 11
6- References .......................................................................................................................... 12
7- Group Assignment Declaration ....................................................................................... 13
8- Refelctive Essay ................................................................................................................. 14

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2- Introduction

As mentioned in the previous report, there was a huge impact due to economic

crisis on the Saudi market. And with the COVID19 pandemic, conditions were getting

hard and worse for companies. Company X was facing a lot of issues for selling their

products easily.

Because of that, after assessing the situation, it was recommended to set two

targets: increasing the sales by 20% and focusing on enhancing the customers’ experience

by focusing on the aftersales’ services.

The consumers are now more aware when it comes to investing in any potential

product or project. They tend to spend their money more carefully. In addition, people

are concerned about the value of the aftersales services.

The company though of increasing the line of products by checking the needs of

the consumers, and the market’s trends.

So, the most important strategy we are talking about here is how to create

competitive advantages for our products. Also, this could ensure winning the customers'

loyalty.

We also believe that social media is already one of the best tools for marketing and

advertising. And we should use this advantage in the first place, before our competitors.

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3- Initiative Steps

Saudi Economy effect the most small and medium companies. Similarly, after

analyzing first quarter we have experienced that our sales was going down drastically,

which make our management in think to take step for the staff. There are two

possibilities, either increase sales by some other source or reduction in the expense by

taking some harsh decision for the staff. As discussed in assignment 2, our sales team

start researching the market and collect data from existing customer. We inquire their

requirement and compare that with our product list to add them in our product range.

We find that even with this economy crisis food and packaging business is running good.

We proposed our management increase our project range by importing products related

to food and corrugated company. Our proposal got approval by the management and we

start working on the new products with the same resources.

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4- Strategies

As for enhancing the customer experiences, Company X focused on six major

steps: asking for customers feedbacks, sending customers relevant contents, promoting

releases to those who have bought from the company before, nurturing the leads by

marketing, offering discounts, and finally having an efficient support service.

Customer feedback is one of the most important things for the businesses. It helps

improve product development, marketing, operations, and so much more. Many

companies might find themselves lacking sales (or simply not keeping the right kind of

customer base) because they have not taken the time to listen to their customers as much

as needed. Listening to the customers is the best way to offer the right product, and

services, thus, moving a business forward.

Furthermore, content (i.e. the articles, recommendations, offers, and copy sent to

subscribers) is a huge part of developing the relationship with the clients. In fact, 81% of

marketing leaders put content at the core of marketing1. By offering relevant

information, it will organically create a process conducive to selling the company’s

products. This is achieved smoothly by creating a content potential client look forward

to reading and seeking out. Those targeted clients who are attracted to the content will

build a relationship with the company, and when it’s time for them to buy, Company X

will be at the top of their list.

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Also, it is important and crucial to spend a substantial share of the marketing

efforts on existing customers. According to a study operated by Signal Mind, a potential

customer has only between 5 to 20% chance of buying a product while this number rises

to 60 or 70% for existing customers2. The existing (long-term) customers are more likely

to develop a strong sense of community around the brand. They will generate more

positive reviews and will be ready, in some cases, to defend and market the products.

They can help in building a database of useful insights about some behavioral patterns

and interests of the company’s targeted audience. And existing customers are the most

suitable people to test new products.

Furthermore, a successful lead nurturing program focuses marketing and

communication efforts on listening to the needs of prospects and providing the

information and answers they need to build trust, increase brand awareness, and

maintain a connection until prospects are ready to make a purchase. Since today’s sales

cycle is significantly longer, nurturing leads is crucial to conversion and maximizing

profit.

Moreover, people prefer more on buying things that are on sales, offering deals to

the customers is a way of attracting customers and drawing people into stores. If you ask

any customer “Want to Save Money?” it is like getting their attention. Offering discounts

not only help clients, but also helps in the businesses. Making more purchases results in

the extra satisfaction because as the clients have a price fixed in their heads and that same

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product if it is offered at a low price with the deal of getting an extra product free with it

adds to extra purchasing to save extra money.

Finally, in the same manner that companies contact customers, customers also

contact companies. In after-sales support, contact can be related to the use of the

purchased product, support and much more. That is why it is important for the brand to

maintain an open and functional communication channel, which can meet the existing

demand. Abandoning customers after sales is one of the mistakes that cannot be made,

and if so, very hard to recover from. Clients need support in order to get the most out of

the purchased product. Not to mention that they might be after information about new

products to buy other products of the brand. We discussed in the previous report adding

a new tool such as “Lube Analyst reports”. This report acts as an early warning system,

monitoring trends and diagnosing issues. Clients can continually monitor their

equipment’s performance and use those insights to inform better maintenance decisions.

Also Lube Analysis report help us to convert other brand customers towards our brand

as for the new customer we are offering them lube analyzing report on different

kilometers or hours to see the difference in the properties after time interval and also

advise them that their equipment can run more or less, depending on the condition of the

equipment. This offer really loved by the customers. In this manner he can show to the

customer that our product quality is very good than other not only by words but through

oil analysis. This report helps customer to maintain their equipment too.

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Addition in the product range and offering after sales service by introducing lube

analysis report by the X company, we can see below as mentioned in assignment 2 that

there is increase in sales by 20 % as compared to last year with the same operation and

team.

Below are two tables comparing the total sales between 2019 and 2020

2019 Sales 2020 Sales

Month Income (SAR) Month Income (SAR)

Jan 1132390 Jan 1470403

Feb 956980 Feb 1497452

March 1228970 March 1345700

April 1237410 April 1480000

May 1347300 May 1532572

VS

June 1417850 June 1522350

July 1280950 July 1452780

Aug 1005770 Aug 1378500

Sep 1123340 Sep 1315750

Oct 1196440 Oct 1375110

Nov 1008750 Nov 1353500

Dec 1311870 Dec 1452075

Total 14248020 Total 17176192

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2019 Sales
1500000

1000000

500000

July
Jan

June
Feb
March

Aug
Sep
May

Nov
April

Oct

Dec
2020 Sales
1600000
1500000
1400000
1300000
1200000

July
Jan

May
June
Feb
March

Aug
Sep

Nov
April

Dec
Oct
As mentioned in chart, due to the economical crisis that took place, the sales volume

drastically went down in 2019. As an example, the long overdue payments casued by this crisis

made the finance department freeze the purchase orders until the overdue payments are cleared

and processed. But the customers are continuously facing issue with their clients from their side

too. Another factor affecting the sales was the low prices the competitors are selling which can

be sustainable for local manufacturers. So the companies selling importing products (such as

Company X) are unable to competite with them. Company X lost many customers due to high

prices compared to that of the competitors. To overcome this issue, company X was forced to

take a decision to maintain their business in the market. Thus adding diverse products which

will be helpful to regain the looses and increase the sales.

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Based on the data collected from one of the salesmen in company X, we compiled the graphs

above. We could notice that the total amount of sales increased from 14,248,020 SAR in 2019 to

reach 17,176,192 SAR in 2020. Taking into consideration the pandemic that happened during

March 2020 (because of the famous COVID19), there was an increase of 2,928,172 SAR.

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5- Conclusion

To increase the sales of new products, the sales or marketing function should collaborate

with the research and development function largely in light with the above mentioned points.

And this depends on the strategies being followed by the organizations and company X is

not an exception to this.

So we can say, that the organizations that do not have an obvious collaboration between all

those functions are subject to be out of the competitive advantage.

In the other hand, the Marketing and the research function also need to collaborate together

in order to help sales and marketing with its tasks, because: That the marketing function in

general , have a weak or no contact at all with the customer , but it concentrates on the markets

trends . Also marketing functions mostly have a medium to long strategic view, because the sales

team usually live in the present not in the future. And because of this, where there are

fluctuations and new events in the markets, the marketing team often will not be going to have

too much luck to help the new products.

So when there is a cooperation between the marketing and the research teams there will be

a greater chance of success to the organization and its marketing and sales functions, no matter

what exceptional circumstances occur!

Decision making is the act of making a choice. We should not forget that without decision-

making, different managerial function such as planning, organizing, directing, controlling,

staffing can’t be conducted3. Therefore, correct decisions help in successful operation of

business. And this was the case for Company X.

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6- References

1. Gartner. 2021. Create Powerful Customer Experiences. [online] Available at:

<https://www.gartner.com/en/marketing/insights/articles/create-powerful-

customer-experiences> [Accessed 27 March 2021].

2. Medium. 2021. Why is it important to target existing customers?. [online]

Available at: <https://medium.com/@bigbomeco/why-is-it-important-to-target-

existing-customers-585302e2ffd2> [Accessed 27 March 2021].

3. Oshatrain.org. 2021. Risk Management. [online] Available at:

<https://www.oshatrain.org/notes/4bnotes03.html> [Accessed 27 March 2021].

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7- Group Assignment Declaration

Course: MBA5004 Date: 18/03/2021

Unit: 1 Assessment Number: 3
Assessment Type: ________________________________________________________________

We, the undersigned, agreed to contribute individually and as a team to complete the Group
Assignment for the above unit assessment in the time specified.
Surname Student ID Date Signature
1. ABOALRIJAL 49717 14/03/2021 __Maumarar_________

2. BAHADUR 49429 14/03/2021 __Deepak____________

3. KAHIL 49466 14/03/2021 ____Abdul Rahman____

We hereby also declare that the enclosed assessment entitled Increase Sales by 20 % by adding new

products and Enhancing Customer Experience , submitted as part of the assessment indicated above

according to the Assessment Guidelines of the abovementioned Unit. The analysis in this report involved

primary and secondary data and literature were researched by the authors of this report for the sole

purpose of this assessment.

Furthermore, we have ensured to not copy any other author’s works without citation, quote or
references to avoid plagiarism; nor did we outsource the preparation (either paid or unpaid) of this
report to comply with the Student Academic Misconduct Policy and Procedure. We hereby confirm, we
are solely responsible and limited to single production of this report.
We declare that our contribution to this assessment has been as indicated in the below table:
Student Name Contribution to the Overall project / Report % of the work Initials
Muaamar ABOALRIJAL Linking the ideas 30 M
Deepak BAHADUR Elaborating increasing the sales and giving figures 35 D
Abdul Rahman KAHIL Elaborating the customer experience effect. 35 A

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Each of us will also provide to our lecturer (on the LMS) a reflective report on the contribution to this
teamwork and the learning gained as a result of this project.

Reflective Essay
ASSIGNMENT 3

Deepak Bahadur Khatri | MBA 5004 | 26-03-2021

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Reflective Essay

After graduation, I always focus on doing my job rather than personal investing. Almost after a long 10-
year continuous job finally, I took the historic decision to take admission in MBA for enhancing my skills
and utilizing them in the corporate world. Honestly, it was a bit difficult for me to adapt study
environment again after a long time but my unit Professor’s lecture was so attractive and innovative way
so that I was motivated to study again.

During sessions, I found my professors and coordinators are very much cooperative and guide me
throughout the unit. The assignments are truly a big challenge for me. But I found my group mates very
supportive. All group member has their own strong point that helps us to complete the assignment on
time. While doing assignments I visualize the whole journey of my career and try to relate that in my
assignment.

Also after listening to professor lectures and doing assignments, I come to know that in our daily
professional life we are using many professional tools without knowing them. It helps a lot to understand
the corporate sector more deeply and offers us the strength to utilize these tools more perfectly in our
workplace.

In closing, this unit has provided me great awareness of data and decision-making with great knowledge
to use tools in our daily routine at the workplace. Since I am looking forward to achieving the highest
level in my organization, the decision-making concept will help me a lot.

Also, I want to say big thanks to my all class members who share their professional experiences, which
can be beneficial for me and I can relate them to my workplace. I hope as I am proceeding forward in
my MBA, It will help me to enhance my skills which will help me to achieve my desire designation.

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