Prject File

DISSERTATION REPORT

PROJECT TITLE

A STUDY ON THE TRAINING ASPECTS OF THE SALES PEOPLE IN THE RETAIL INDUSTRY

This dissertation report is being submitted as part of the requirements of the BBA Program of Baba Farid College of Management & Technology. The study has been

undertaken by:

Harkirat Singh DhaliwalUID NO-112261139

With the guidance and support of

Lect. Baldeep SinghFaculty

Baba Farid College of Management & Technology

2014

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GUIDE CERTICATE

This is to certify that Mr. Harkirat Singh Dhaliwal of our institute has completed

his dissertation in RETAIL INDUSTRY and carried out a study on THE

TRAINING ASPECTS OF SALES PEOPLE IN RETAIL INDUSTRY, under my

guidance.

Date:Place: Bathinda

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DECLARATION

I Harkirat Singh Dhaliwal, studying in Baba Farid College of Management &

Technology, Bathinda do hereby declare that this Dissertation Report relating to

RETAIL INDUSTRY and the topic STUDY ON THE TRAINING ASPECTS OF

SALES PEOPLE IN THE RETAIL INDUSTRY has been prepared by me after

doing a research in this industry, as part of the requirements of the BBA Program

(2014). My guide for the training has been Lect. Baldeep Singh.

I further declare that this Dissertation Report has not been submitted earlier to any

other University or Institute for the award of any Degree or Diploma.

Date:Place: Bathinda

HARKIRAT SINGH DHALIWAL

UID NO-112261139

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ACKNOWLEDGEMENT

I wish to express my deep sense of gratitude to _______________, Baba Farid college

of Management & Technology for providing me the opportunity to do my

Dissertation, which provided me with lot of practical experience of the industry.

I wish to record my deep sense of gratitude to project my guide Lect. Baldeep Singh

for his kind support, advice and encouragement from the beginning of the project

till the completion of the project report.

I would also like to acknowledge all those respondents who have lend their precious

time without which this dissertation work would not have been successful.

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CHAPTERS PAGE-NO1) INTRODUCTION 1

2) DESIGN OF THE STUDY 4

3) PROFILE OF THE RESPONDENTS 7

4) ANALYSIS 34

5) FINDING, CONLUSION AND SUGGESTIONS 58

ANNEXURE

BIBLIOGRAPHY

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Serial No

Description Table no Graph no Page no

1 Importance of training 1 1 43

2 Assessment of training needs 2 2 44

3 Number of sales people in Bathinda 3 3 45

4 Number of sales people in India 4 4 46

5 Frequency of conducting the training programme

5 5 47

6 Budget for training 6 6 48

7 Aims and objectives of training 7 7 498 Methods used for training 8 8 50

9 Place of training 9 9 5110 Why train sales force 10 10 52

11 The Trainer 11 11 5312 Product or service 12 12 54

13 Contents of the training 13 13 5514 Training aids used 14 14 56

15 Instructional methods 15 15 5716 Effectiveness of the training 16 16 58

17 Frequency of the training programme 17 17 59

18 Suggestions by the sales force 18 18 6019 Training needs 19 19 61

20 Experience of sales people 20 20 6221 Qualification of sales force 21 21 63

22 Income of sales people 22 22 6423 Commission and incentives 23 23 65

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EXECUTIVE SUMMARY

This report is the outcome of my learning during the research that I have done on the

training needs of the sales people in the retail industry, Bathinda, as part of my

dessertation. This report gives a clear view of the retail sector, and the training facilities

provided to the sales force of retail industry. The report gives a view of the industry and

its activities.

India's retail sector appears backward not only by the standards of industrialized countries

but also in comparison with several other emerging markets in Asia and elsewhere. There

are only 14 companies that run department stores and only two with hypermarkets. While

the number of businesses operating supermarkets is higher (385 in 2010), most of these

had only one outlet. The number of companies with supermarket chains was less than 1.

However, the retail market is growing, not only in terms of numbers but also in terms of

stature, image and class. It is interesting to know that in a modern city like Mumbai,

which already had relatively good standards, the retail industry has moved to an even

higher level.

Customers are constantly changing and their expectations keep rising. Today Indians

have become world class consumers who demand world class service.

Regular update of skills, training, development and technology (bearing in mind the

necessity of keeping the human element in place because technology in itself, is cold,

impersonal and not at all customer friendly) will ensure that brand marketers are able to

keep pace in a dynamic world.

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The market survey was conducted to know what kind of training is currently provided by

the retail companies. Almost all kinds of retail outlets were covered under this research

like the retail outlets of big brands of sports wear, clothing showrooms, food retailers of

all sizes. There were different numbers of sales people working in different kinds of retail

companies. All of them were provided with various training and this study was to identify

those training details in this industry.

The sampling method used was judgmental and convenience sampling.

In retail industry which is in boom from past one decade there is a drastic change in the

way the business is run. Now there are lots of major players in this industry from small to

big. The retail business has become more organized and customer oriented. So the

people in this industry are also changing with a more professional outlook with more

knowledge and skills to impress the consumers and make good volume of sales at the end

of the day. According to the requirements the sales people are to be trained and this study

was conducted to access the effectiveness of the training being given to the sales force at

present. The study came out with the findings that there is a good improvement in

fulfilling the training needs of sales force in retail industry in Bathinda. Some more

improvements are needed which are specified in the interpretation and suggestions.

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INTRODUCTION:

This research is basically done to find out the training needs of the sales people in the

retail industry and how they are being fulfilled. The retail industry in our country is at

boom and getting organized day by day, the demands of customers are not just great

products but also great shopping experience and to make this possible a retail outlet

should have well trained sales people. This study is made to know how well the sales

people of retail industry in Bathinda are trained to meet the customer expectations and

global standards.

The retail sales people demonstrate how items work and explain details of items to

customers; they give information about various models, colors, and brands of an item.

Sometimes they give special information about very expensive or complex items. They

help customers to find items in the store, they try to convince customers to buy those

items. Retail sales people compute the amount of the total sale and received cash, cheque

or credit card payments. Sales people also handle returns or exchanges of items.

The above mentioned are the very basic and important duties of sales people and they

require great skills and knowledge to perform well. And this high level performance can

only be seen if the sales people are provided with training as and when required.

Retailers are increasingly stressing the importance of providing courteous and efficient

service in order to remain competitive. The direct link between the customers and the

company is the sales people who are expected to provide this courteous and efficient

service to the customers. Sales people are periodically given training to update and refine

their skills for providing the best customers.

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A sales persons gain experience and seniority; they usually move to positions of greater

responsibility and may be given their choice of departments. This often means moving to

areas with potentially higher earnings and commissions. The highest earnings potential is

usually found in big-ticket items. This type of positions often requires the most

knowledge of the product and the highest talent for persuasion. So training is the most

important aspect in recent trend which increases the potential of sales people to meet the

organizational and personal objectives

The retail industry in Bathinda has changed its face and approach. Sales people working

in this industry play major role in handling the customers effectively. This study is done

to evaluate the training system used by the retail industry in Bathinda. And also to

understand training aspects which keeps the sales force of retain industry fit and ready to

face any kind of challenges, particularly due to increasing domestic and international

competition.

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DESIGN OF THE STUDY:

Problem statement:

The retail industry in Bathinda has changed its face and approach. From small

outlets to big showrooms and departmental stores, every retailer is giving their business a

new look. Sales people working here play a major role by handling the customers

effectively. Customers are of various types and to handle them and their queries, sales

people should be having good skills and knowledge. This study is to understand the

training aspects which keep the sales force of retail industry fit and ready to face any kind

of challenges, particularly due to increasing domestic and international competition.

Objectives:

1. To understand the training needs of the sales people in the retail industry in

Bathinda.

2. To evaluate the training system used by the retail industry in Bathinda.

3. To suggest improvements to the existing training programmes conducted by retail

industry.

Research methodology:

Sources of data: primary and secondary.

Primary data is collected by using descriptive research method from retail outlets of all

types.

Secondary data is collected from the internet, journals and news paper.

Sampling method:

Non-probabilistic Sampling scheme by using convenience and judgment sampling

technique.

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Sampling size:

70

Sampling unit:

Retail-outlets of all types.

Method of contact:

Personal interviews/contacts were carried out for the retail outlets.

Research Instrument:

Structured questionnaire used to collect the primary data.

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PROFILE OF THE RESPONDENTS:

Respondents were all types of retailers, in which again the sales managers, the

outlet owners and the sales people were asked the questions.

These retail outlets were from all over the Bathinda city.

These retailers were into all kind businesses like FMCG, durable goods and

others.

There were no geographical limitation (Bathinda) while selection of the retail

outlets.

All the respondents were individuals and no group responses were collected.

INDUSTRY PROFILE:

Whether selling shoes, computer equipment, or automobiles, retail salespersons assist

customers in finding what they are looking for and try to interest them in buying the

merchandise. They describe a product’s features, demonstrate its use, or show various

models and colors. For some sales jobs, particularly those selling expensive and complex

items, retail salespersons need special knowledge or skills. For example, salespersons

who sell automobiles must be able to explain to customers the features of various models,

the meaning of manufacturers’ specifications, and the types of options and financing

available.

Consumers spend millions of dollars every day on merchandise and often form their

impressions of a store by evaluating its sales force. Therefore, retailers are increasingly

stressing the importance of providing courteous and efficient service in order to remain

competitive. When a customer wants an item that is not on the sales floor, for example,

the salesperson may check the stockroom, place a special order, or call another store to

locate the item.

In addition to selling, most retail salespersons, especially those who work in department

and apparel stores, make out sales checks; receive cash, check, and charge payments; bag

or package purchases; and give change and receipts. Depending on the hours they work,

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retail salespersons may have to open or close cash registers. This may include counting

the money; separating charge slips, coupons, and exchange vouchers; and making

deposits at the cash office. Salespersons are often held responsible for the contents of

their registers, and repeated shortages are cause for dismissal in many organizations.

Salespersons may also handle returns and exchanges of merchandise, wrap gifts, and

keep their work areas neat. In addition, they may help stock shelves or racks, arrange for

mailing or delivery of purchases, mark price tags, take inventory, and prepare displays.

WORKING CONDITIONS:

Most salespersons in retail trade work in clean, comfortable, well-lighted stores.

However, they often stand for long periods and may need supervisory approval to leave

the sales floor.

This job can be rewarding for those who enjoy working with people. Patience and

courtesy are required, especially when the work is repetitious and the customers

demanding.

EMPLOYEMENT:

The sales people worked in stores ranging from small specialty shops employing a few

workers, to giant department stores with hundreds of salespersons. In addition, some

were self-employed representatives of direct sales companies and mail-order houses. The

largest employers of retail salespersons are department stores, clothing and accessories

stores, furniture and home furnishing stores, and motor vehicle dealers.

This occupation offers many opportunities for part-time work and is especially appealing

to students, retirees, and others looking to supplement their income. However, most of

those selling "big ticket" items, such as cars, furniture, and electronic equipment, work

full time and have substantial experience.

EDUCATION AND TRAINING:

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There usually are no formal education requirements for this type of work, although a high

school diploma or equivalent is increasingly preferred. Employers look for people who

enjoy working with others and have the tact and patience to deal with difficult customers.

Among other desirable characteristics are an interest in sales work, a neat appearance,

and the ability to communicate clearly and effectively. The ability to speak more than one

language may be helpful for employment in stores in communities where people from

various cultures tend to live and shop. Before hiring a salesperson, some employers may

conduct a background check, especially for a job selling high-priced items.

In most small stores, an experienced employee, or the proprietor, instructs newly-hired

sales personnel in making out sales checks and operating cash registers. In large stores,

training programs are more formal and usually conducted over several days. Topics

usually discussed are customer service, security, the store’s policies and procedures, and

how to work a cash register. Depending on the type of product they are selling, they may

be given additional specialized training by manufacturers’ representatives. For example,

those working in cosmetics receive instruction on the types of products available and for

whom the cosmetics would be most beneficial. Likewise, salespersons employed by

motor vehicle dealers may be required to participate in training programs designed to

provide information on the technical details of standard and optional equipment available

on new models. Because providing the best service to customers is a high priority for

many employers, employees are often given periodic training to update and refine their

skills.

JOB OUTLOOK:

As in the past, employment opportunities for retail salespersons are expected to continue

to be good because of the many job openings created each year due to the need to replace

the large number of workers who transfer to other occupations or leave the labor force.

Additional openings will be created by growth in employment of retail salespersons.

Employment is expected to increase about as fast as the average for all occupations

through the year 2008 due to anticipated growth in retail sales created by a growing

population. There will continue to be many opportunities for part-time workers, and

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demand will be strong for temporary workers during peak selling periods, such as the

Christmas season.

SALES PEOPLE IN RETAIL INDUSTRY

Retail salespeople help customers find items in stores. They try to convince customers to

buy those items.

There it is in the display, the 5.1 megapixel digital camera you've been eyeing for

months. It's got more bells and whistles than a circus clown! You've researched the

brand, the features, and finally decided that today, you are going to get it. You walk up to

the counter and the salesperson asks with a smile, "What can I help you with today?" You

reply that you want to buy the camera. Your fingers twitch with excitement. You can't

wait to start shooting! "Oh, I'm sorry," the salesperson says. "It's been a hot seller and we

are out of stock. We sold the last one just a few minutes ago."

You've waited and finally saved up enough money, and now it's not here! "Let me check

with our other store," the salesperson offers, checking the inventory on the computer. "A-

ha! They have two left. I'll put a hold on it right now. If you still want it, I can arrange to

have it shipped to your home," the salesperson says helpfully. You sigh with relief.

"Thank you," you say. "You've been very helpful." Thanks to that salesperson, you're

shooting high resolution digital images within a few days.

Retail salespeople demonstrate how items work and explain details of items to customers.

They give information about various models, colors, and brands of an item. Sometimes

they give special information about very expensive or complex items. They help

customers to find items in the store. If they cannot find an item, retail salespeople check

the stockroom or make special orders from other stores.

Retail salespeople compute the amount of the total sale and receive cash, check, or credit

card payments. Then they give customers change and receipts. Most salespeople are

assigned to a register at the beginning of their shift. They are also given drawers with

ôbanksö of money. They count their banks to be sure they contain the correct amount of

money. At the end of their shift, salespeople again count the drawers' contents and

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compare the totals with their sales data. They also total charge forms, return slips, and

other non-cash items. Finally, salespeople deposit the day's sales at the store's cash office.

WORK ACTIVITIESThe following list of occupational tasks is specific to this career.

Provide polite and efficient service to customers. Determine each customer's

needs.

Describe items for sale and show different models or colors if necessary. Answer

questions.

Show how items are used.

Make special orders or check other stores for hard-to-find items.

Receive cash, check, and charge card payments.

Compute cost of total sale using cash register.

Give cash change and receipts to customers.

Bag or package items for customers.

Wrap items to be given as gifts.

Arrange to mail or deliver special-order items.

Handle returns or exchanges of items.

Count and keep track of money in cash register.

Sort through charge slips, exchange slips, and coupons in cash register. Balance

cash drawers.

Make cash deposits at the store's cash office at the end of business.

Organize, display, and keep track of items for sale.

Stock shelves and racks.

Mark price tags.

Keep work areas neat.

Watch for and prevent security risks and thefts.

Stay up-to-date about sales and special offers and store policies.

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People in this career perform the following list of tasks, but the tasks are common to

many occupations.

Work with the public.

Convince others to buy goods.

Get information needed to do the job.

Establish and maintain relationships.

Communicate with supervisors, peers, or subordinates.

Update and use job-related knowledge.

Resolve conflicts and negotiate with others.

Working Conditions

In a typical work setting, people in this career:

Interpersonal Relationships

Deal with and provide service to customers.

Have a high level of contact with customers and coworkers.

May on occasion deal with angry or discourteous people.

Are moderately responsible for the health and safety of customers. This usually

applies to customers who test drive cars or other vehicles and equipment.

May on occasion be placed in a conflict situation.

Have moderate responsibility for outcomes. Salespeople are expected to meet

sales quotas.

Physical Work Conditions

Often work indoors. However, retail salespeople may work outdoors if they sell

items such as cars, plants, or lumber yard materials.

Work Performance

Must be exact in their work and be sure all details are done. This is so that

customers are charged the correct price for items.

Often repeat the same tasks.

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Hours/Travel

May work part time or full time.

May work evenings, weekends, or holidays.

Often work longer hours around the winter holidays.

May be discouraged from taking vacation time during peak shopping periods.

Physical Demands

People in this career frequently:

Stand for long periods of time.

Walk from place to place in the store.

Repeat the same motions.

Use hands to handle, control, or feel objects, tools, or controls.

It is important for people in this career to be able to:

Speak clearly so listeners can understand.

Recognize and understand the speech of another person.

Use stomach and lower back muscles to support the body for long periods without

getting tired.

It is not as important, but still necessary, for people in this career to be able to:

See details of objects that are less than a few feet away.

Use hands and fingers to grasp, move, or assemble objects.

Move two or more limbs together (for example, two arms, two legs, or one leg

and one arm) while remaining in one place.

See details of objects that are more than a few feet away.

See differences between colors, shades, and brightness.

Hold the arm and hand in one position or hold the hand steady while moving the

arm.

Bend, stretch, twist, or reach out with the body, arms, and/or legs. Sometimes

these movements are made quickly and repeatedly.

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Use muscles to lift, push, pull, or carry heavy objects.

Be physically active for long periods without getting out of breath.

Coordinate movement of several parts of the body, such as arms and legs, while

the body is moving.

Skills and Abilities

People in this career need to:

Communicate

Listen to others and ask questions.

Understand spoken information.

Express ideas clearly when speaking or writing.

Read and understand work-related materials.

Reason and Problem Solve

Analyze ideas and use logic to determine their strengths and weaknesses.

Judge the costs and benefits of a possible action.

Notice when something is wrong or is likely to go wrong.

Follow guidelines to arrange objects or actions in a certain order.

Use Math and Science

Use math skills to solve problems.

Add, subtract, multiply, and divide quickly and correctly.

Work with People

Recognize others' reactions and understand the possible causes.

Teach others how to do something, such as operate a new product.

Knowledge

People in this career need knowledge in the following areas:

Customer and Personal Service: Knowledge of providing special services to

customers based on their needs.

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Sales and Marketing: Knowledge of advertising and selling products and services.

Administration and Management: Knowledge of managing the operations of a

business, company, or group.

Education and Training: Knowledge of teaching and the methods involved in

learning and instruction.

Mathematics: Knowledge of the rules and uses of numbers. Areas of knowledge

include arithmetic, algebra, geometry, and statistics.

English Language: Knowledge of the meaning, spelling, and use of the English

language.

Public Safety and Security: Knowledge of protecting people, data, and property.

Interests

People in this career are people who tend to:

Consider support from their employer important. They like to be treated fairly and

have supervisors who will back them up. They prefer jobs where they are trained

well.

Consider relationships important. They like to work in a friendly, non-competitive

environment. They like to do things for other people. They prefer jobs where they

are not pressured to do things that go against their sense of right and wrong.

Consider good working conditions important. They like jobs offering steady

employment and good pay. They want employment that fits their individual work

style. They may prefer doing a variety of tasks, working alone, or being busy all

the time.

Have enterprising interests. They like work activities that involve starting up and

carrying out projects, especially in business. They like to lead and persuade

others, make decisions, and take risks for profit.

Have social interests. They like work activities that assist others and promote

learning and personal development. They like to communicate with others: to

teach, give advice, help, or otherwise be of service to others.

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Preparation

To work as a retail salesperson, you must:

complete on-the-job training; have excellent interpersonal skills; and

be self-motivated.

No formal education is required beyond high school. However, a college degree can be

good preparation for selling high priced or technical products, such as cars or computers.

Several fields of study provide a good background for this occupation.

Many employers require salespeople to have a college degree if their jobs are part of a

management-training program. Be sure to take courses in business management,

marketing, and computers if you are interested in a retail management position.

On-the-job-Training

Retail salespeople learn their skills mainly through on-the-job training. In smaller stores,

training happens one-on-one with a manager or owner. Larger stores have formal training

programs. In these programs you learn about customer service, security risks, and store

policies. You also learn how to operate cash registers and price-scanning machines.

Some retail salespeople receive special training from manufacturers. This training is

usually limited to expensive or complex items, such as computers or cars. You may also

need special training if you sell very specific types of items, such as plants, fabrics, or

health care products.

Work-Experience

Many jobs are entry level and do not require previous experience.

Some jobs, such as selling cars, building materials, or computers may require previous

experience.

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Over the past twelve years, Belding Skills Development has earned a reputation for

results-driven retail training.  Belding has designed and delivered world-class retail

Customer Service training programs and retail Selling Skills training programs for some

of today's most successful retailers! 

The organized retail sector is expected to grow at 6% by 2010 and touch a retail business

of $ 17 billion as against its current growth level of 3% which at present is estimated to

be $ 6 billion, according to the Study undertaken by The Associated Chambers of

Commerce and Industry of India (ASSOCHAM).

The Study has revealed that the retail sector will grow at GDP 7% by 2010 and enlarge

its market share to $ 280 billion from its present estimated level of $ 200 billion.

Releasing the Study on `Retail Scenario in India’, ASSOCHAM President, Mr. Mahendra

K. Sanghi has revealed that the organized sector retailing is all set to grow at much faster

speed than unorganized sector and the higher growth speed will alone be responsible for

its higher market share which has been projected for $17billion.

Cities and metropolies in which retailing will show booming prospects include Mumbai,

Delhi, Chennai, Kolkata, Bathinda and Kanpur, said Mr. Sanghi adding that the popular

mode adopted for building shopping malls in these cities will be based on build, operate,

lease and sell basis.

This system, as per the findings of ASSOCHAM will lead to establishments of closer

linkages and relationship between real estate developers, state governments, financial

institutions and retail industry.

As per ASSOC Ham’s estimates, investment opportunities that the retail sector will

create in next 4-5 years will result into continued urbanization and increase the per capita

income of Indian populace which will finally lead to greater consumerism.

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The growth of retail sector will lead to greater shift towards service economy in which

need for real estate will be paramount, said Mr. Sanghi.

Franchising in retailing will emerge as a popular mode of retailing as their will be

proliferation of availability of brands with both foreign and Indian companies acquiring a

strong brand equity for their products in near future.

The retail boom currently being witnessed in India is likely to have a significant impact

on the commercial real estate sector as the large metropolis will have sizable retail

construction projects underway. However, there will be few stumbling blocks that may

restrict the growth of retail sector. These include very high stamp duties on transfer of

property which vary from state to state level.

A case in example is Gujarat, Uttar Pradesh and few other states where the stamp duty is

charged at 12.5%, while there are certain states like Delhi in which

the stamp duty levied is within the range of 8%.Urban Land Ceiling Act, Rent Control

Act and Land Acquisition Act until amended will continue to distort property markets

and cities, leading to exceptionally high property prices. Presence of strong pro-tenancy

laws will also make it difficult for retailers to grow as this problem is compounded by

lack of clarity over titles to ownership.

The government should encourage People of Indian Origin (PIO) to invest in real estate

and township building and foreign investment in real estate business and retailing should

also be opened up.On the domestic taxation front, sales tax rates differ across the various

Indian states, making supply chain management a challenging task for organized

retailers. Inter-state sales attracts Central Sales Tax while for some categories of

products, certain states levy import duties namely entry tax on entry of goods into their

territory. Simultaneously, states levy export duties where goods are moved for sale

outside state border.

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Consumer behaviour in the organized retail industry has altered drastically over the last

few years, a fact that retailers need to be sensitive to. With the consumer becoming

increasingly discerning, it becomes vital for retailers to pay attention to every little detail

in order to be successful. Thus, providing a good brand experience is vital. Brand

experience would include several aspects: the timings of the store, the consumer’s entry,

the welcome that he or she receives, the familiarity of the layout, the ability to browse

with ease, the ease of navigation, the variety and the range, the product knowledge

possessed by salespeople, the

payment facilitation, the attractiveness of the loyalty programme, the seating

arrangement, the toilets, the packaging and the exit.

These are all crucial to the overall brand experience. If not handled well, it could result in

a disgruntled consumer, who spreads bad word-of-mouth. If the overall brand experience

is positive and pleasant, consumers are likely to keep coming back to the store and the

popularity of the store increases through wordof- mouth.

The retail market is growing, not only in terms of numbers but also in terms of stature,

image and class.

It is interesting to know that in a modern city like Mumbai, which already had relatively

good standards, the retail industry has moved to an even higher level.

Customers are constantly changing and their expectations keep rising. Today Indians

have become world class consumers who demand world class service.

Regular update of skills, training, development and technology (bearing in mind the

necessity of keeping the human element in place because technology in itself, is cold,

impersonal and not at all customer friendly) will ensure that brand marketers are able to

keep pace in a dynamic world.

Under no circumstances must brand marketers be allowed to get regressive; there is a

need that brand marketers constantly rise to the occasion and surpass customer

expectation. Recently, Crossword, the bookstore chain inaugurated its largest store at

Kemps Corner in Mumbai, where S Rriram, CEO, Crossword Bookstores, and his team

played gracious hosts to authors and readers. The spaciousness, the spread, and the focus

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on detail reflected world class standards and established Crossword as a strong brand.

Service is a key element in successful retailing and attention to detail is likely to result in

customer satisfaction and greater sales.

Spice-of-variety

One of the reasons why consumers frequent a particular store is to look at various items

under one roof. Range is another detail that the retail industry cannot ignore. At

Pantaloon, there is an attempt to provide a wide choice so that the customer can pick and

choose as per his or her taste. Discount and low cost are also factors that retailers need to

take care of as an increasing number of customers are willing to go a great distance to get

value for their purchases.

Offering goods at a price lower than MRP seldom fails to attract consumers. International

appeal is yet another detail that retailers need to attend to.

International products and brands still attract the Indian consumer and even a small

Marks & Spencer store has great appeal. Training is another important aspect of retail.

Shoppers’ Stop and Nirmal Lifestyles (which transformed a far-flung suburb like Mulund

into a retail hub) are both known to have top class training programmes for their

executives.

Finally, novelty is a detail that retail just cannot miss. In fact, it is a factor that serves to

differentiate an outlet from other outlets. Malls largely owe their success to the novelty

factor attached to them. Retailers need to keep several things in mind in order to enhance

customer experience and provide a positive brand experience. A few are listed below:

Understand customer needs quickly

A retailing professional notices a customer’s need even before he verbalises it.

Promptness in identifying and satisfying every customer’s unique needs is essential.

This requires keen listening and an acute sense of observation, which would enable the

retailer to provide a good brand experience.

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"I am excited about the segment," said Jain. "Our outlets are very modern. We do not sell

at the rate of gold or diamond on a particular day, we sell at a fixed price."

Intergold is a subsidiary of the Rosy Blue Group - a diamond manufacturing company

with offices in 15 countries. The group entered the Indian retail jewelry in 1988 with its

first store in Mumbai. Now, it has 24 stores in 15 cities. It is looking to add 12 stores

every year, said Jain.

He suggested that funding is a major issue for an organized retail model. "It takes years

for a retail chain to break even," said Jain. "If you get into malls, you have to deal with

the high cost of rent." In addition, it has been difficult to hire educated people and talent

into retail stores, he added. "Indian parents have traditionally not been willing to send

their children into the retailing business."

For the shopping malls, the struggle will be to deal with supply chain inefficiencies, said

Shoppers' Stop's Raheja. The distribution system in India has to be streamlined to avoid

wastage and to ensure low costs, according to him. "Supply chain is the biggest concern,"

he said. "Indian consumer is very price conscious. He wants value for money." Jain said

the Indian malls have a great future as they provide entertainment for shoppers, unlike

traditional "mom and pop" stores.

The malls are creating a shopping experience," added Jain. "The success of Café Coffee

Day and Barista has been because people did not have a place for leisure and hanging out

outside their offices or classrooms."

For Biyani, malls will remain a big city phenomenon only. According to him, the growth

will mainly be in specialty stores such as stores for watches, branded clothing and not a

generic super stores such as Wal-Mart.

According to the Federation study, development of the retail industry should be made a

priority by the Indian government. Issues such as inter-state movement of goods, and

30

infrastructure also need to be tackled to develop the retail industry in India. Lack of

foreign investment is what is keeping the industry from growing, according to the study.

TRAINING THE SALES FORCE:

Once a company has decided to invest time, money and resources in sales force training,

the next big challenge is its implementation. There is no "magic wand" that will

implement what's learned in a sales and marketing training session and make it part of the

company culture. A high performance sales culture is not an event, but a journey. All

journeys need road maps.

Effective Sales Training

Effective sales training is the foundation upon which long-term sales success is built.

Unfortunately, many sales training programs consist of just listening to someone tell you

what you should be doing and perhaps showing you how the instructor would do it.

The key to effective sales training is to provide more than just what-to-do training. It

must also show you how to do it along with providing the opportunity to hone your skill

by actually doing it.

For training to be truly effective, it needs to be a process and not an event.

Levels of Sales Training

Level-1

When your new employee is at Level 1 they are unconsciously incompetent. They are

unconscious of how you run your business and what to do at their new jobs. They are

incompetent to the terms of the skills needed to be a successful employee in your

business. Even if they have some sales skills when they start, they still are unconscious to

how things run within your company.

Start by teaching the basics of your business - step by step. Baby steps, until they grow to

the next level of learning. Let them develop the skills of welcoming your customers into

the store and gaining the customer’s trust. As your new staff members build a rapport and

31

new friendships with the customers, they will also be building their own confidence on

the sales floor.

Of course, product knowledge is a main factor in making the sale. But, when new

employees start out, it’s more important for them to make themselves and the customers

feel comfortable. The knowledge of the inventory will soon be learned as they work with

it.

Treat your new staff as if they were your special customers. Sell them on the excitement

of your inventory. This training process can be turned into an enjoyable and rewarding

experience for you. What a thrill to bring in new members to your team, get to know

them, and watch them learn and grow.

Even though this level of training may start with the basics, it can actually be the most

encouraging level of all because the new employee starts out with a lot of energy and

excitement about his or her new position. If you pick up on that energy you will find it to

be a most pleasant experience for both of you.

Level 2: Sales Training

At this level your trail training period should be over and, hopefully, you have decided

that your new employees are the right people for their jobs. Though they have learned a

lot the first month, they are now consciously incompetent. They are conscious of what is

needed to be done on the job, yet they still do not have the skills needed to be a great

salesperson and are still incompetent.

That is why this level can be the most frustrating of all. The excitement of the new job

may have worn off somewhat and they are frustrated because they see other team players

making all the sales.

At this time it is important to recognize their accomplishments and compliment them on

how well they are doing. Keep supporting and encouraging them at this level - you need

to be a cheerleader.

32

Set up a meeting with them to discuss how they are doing and offer your support in their

continued learning process. Let them talk to you about how they feel about their new

positions. Discuss concerns and answer any questions they may have about their new

positions. Find out how they feel about selling and what empowers them to work on

improving their skills.

Your sales people will increase their sales drastically when they add some genuine

enthusiasm for the products and services they are selling.

Level 3: Sales Training

Congratulations are in order when the newest members of your sales team reach this

level.

Whoever said, “You can’t get good help”, never took the time to train a staff to reach this

level. Why settle for less than the best team your money can buy?

When your employee has reached level three they are consciously competent. They are

conscious of what needs to be done on the job and are very knowledgeable about how

your business runs. They are competent because they know your products well and can

sell them on their own, easily and successfully. Delegate areas were they show strength,

show your appreciation and reward them for their accomplishments. Continue the

training process by informing them of changes in your policies and products. Empower

your staff to make decisions and accept their input toward your success at regular store

meetings. If you do, you’ll soon have the dream team you’ve always wanted.

Government policy

There has been vigorous opposition to foreign direct investment (FDI) in retailing from

small traders who fear that foreign retailing companies would take away their business,

lead to the closure of many small trading businesses and result in considerable

unemployment. Given the political clout of the small trading community, because of their

enormous numbers, the government has barred FDI in retailing since 1997. Hence, at

33

present, foreign retailers can only enter the retailing sector through franchising

agreements.

Organisational characteristics

Given the traditional and underdeveloped state of the Indian retail sector, the

organisational characteristics of retail enterprises are rudimentary. Most of them belong

to independent enterprises in the form of small family businesses.

Cooperatives have been present in India for several decades, spurred by the

encouragement given by the Indian Government, which viewed the cooperative

movement as an integral component of its erstwhile socialist policies. However, since the

1990s, there has been a reduction in government support for cooperatives. In 2002, there

were about 35,000 outlets run by cooperatives.Economic liberalisation, competition and

foreign investment since the 1990s led to a proliferation of brands with both foreign and

Indian companies acquiring a strong brand equity for their products. Hence, franchising

emerged as a popular mode of retailing. Sales of franchises grew at a rapid pace of 14%

per annum over the review period. In 2002, there were over 5,000 franchised outlets.

The other major retailing organisation format is multiples, better known as "chain stores"

in India. In 2002, there were about 1,800 chain stores. Among the various organisational

formats, sales of chain stores grew at the fastest pace, with sales growth during the

review period averaging 24% per year.

Food-retailers

There are a large variety of retailers operating in the food retailing sector. This is not

surprising considering the enormous size of the market for food. However, traditional

types of retailers, who operate small single outlet businesses mainly using family labour,

dominate this sector. In comparison, supermarkets account for a minuscule proportion of

food sales. This is because of the strong competitive strengths that traditional retailers

possess. These include low operating costs and overheads, low margins, proximity to

customers, long opening hours, and additional services to customers (such as home

delivery). Nevertheless, supermarket sales expanded at a much higher rate than other

34

retailers. This is because greater numbers of higher income Indians prefer to shop at

supermarkets because of convenience, higher standards of hygiene and the attractive

ambience.

Health and beauty products retailers

With growth in incomes, Indians have been spending more on health and beauty

products. As in the case of other retailing sectors, small single-outlet retailers also

dominate sales of health and beauty products. However, in recent years, a couple of retail

chains specialising in health & beauty products have sprung up. At present, they account

for only a tiny share of sales of these products. However, as Indians spend more on such

products in future, their business will undoubtedly expand substantially. There is also

scope for entry of more such chains.

Clothing and footwear retailers

Numerous clothing and footwear shops are to be found in Indian cities and towns,

especially in shopping centers and markets. These are a mix of traditional and modern

stores. Traditional outlets are small and cramped with little emphasis on alluring displays.

They basically stock a limited range of cheap and popular items. In contrast, modern

clothing and footwear stores are spacious with sample products attractively displayed in

windows, sometimes with mannequins. Just as in the case of food retailing, there are also

a huge number of retailers selling clothing and footwear in makeshift stalls or on

footpaths. Because of their rock-bottom prices, which are much lower than prices of

branded products, they attract a large number of customers.

Home furniture and household goods retailers

The home furniture and household goods retailing sector in India is dominated by small

retailers. Despite the large size of this market, very few modern and large retailers have

established specialized stores for these products. However, there is considerable potential

for the entry or expansion of specialized retail chains and it is likely that this will happen

during the next few years.

35

Durable-goods-retailers

The entry of a large number of foreign consumer durable companies into the Indian

market during the 1990s after the government liberalized its foreign investment and

import policies transformed this sector dramatically. A much larger variety of consumer

electronic items and household appliances became available to the Indian customer.

Competition among companies to sell their brands provided a strong impetus to the

growth for retailers operating in this sector.

Leisure and personal goods retailers

Rising household incomes due to economic growth spurred consumer expenditure on

leisure and personal goods in India. There are specialised retailers for each category of

products in this sector. A few retail chains also emerged particularly in the retailing of

books and music products. Another key feature of this sector is the popularity of

franchising arrangements between established manufacturers and retailers. Alternative

selling channels.

Sales through most alternative selling channels are tiny or non-existent. The only

exception was direct selling, which grew rapidly over the review period. The main reason

for this was that direct selling companies could easily attract a huge number of

"distributors", who constitute the key element for the success of any direct selling

company. Many of these are unemployed Indian housewives who welcomed this

opportunity to earn additional income for their households. The low start-up costs meant

that they could easily start this business.

Forecast total retail sales

Retail sales (in real terms) are predicted to rise more rapidly than consumer expenditure

during 2010-2012. The forecast growth in real retail sales during 2010-2012 is 8.3% per

year (compared with 7.1% for consumer expenditure).

Inevitably, modernisation of the Indian retail sector will be reflected in rapid growth in

sales of supermarkets, department stores and hypermarkets. This is because of the

36

growing preference of the affluent and upper middle classes for shopping at these types

of retail stores, given the conveniences they offer such as shopping ambience, variety and

a single-point source for purchases. Hence, sales from these large format stores are

predicted to expand at growth rates ranging from 24% to 49% per year during 2003-2008.

However, such rapid growth is from a small base. Hence, they will continue to account

for only a small share of total retail sales in 2008.

Retailing, one of the largest sectors in the global economy, is going through a transition

phase not only in India but the world over. For a long time, the corner grocery store was

the only choice available to the consumer, especially in the

urban areas. This is slowly giving way to international formats of retailing. The

traditional food and grocery segment has seen the emergence of

supermarkets/grocery chains (Food World, Nilgiris, Bombay Bazaar, Apna

Bazaar), convenience stores (ConveniO, HP Speedmart) and fast-food chains

(McDonalds, Dominos).

The emergence of new sectors has been accompanied by changes in existing

formats as well as the beginning of new formats:

o Hypermarket:

o Large supermarkets, typically 3,500-5,000 sq. ft.

o Mini supermarkets, typically 1,000-2,000 sq. ft.

o Convenience stores, typically 750-1,000sq. ft.

o Discount/shopping list grocer

In order to appeal to all classes of the society, retail stores would have to identify

with different lifestyles. In a sense, this trend is already visible with the

emergence of stores with an essentially `value for money' image. The

attractiveness of the other stores actually appeals to the existing affluent class as

well as those who aspire for to be part of this class. Hence, one can assume that

the retailing revolution is emerging along the lines of the economic evolution of

society.

37

Spread of organized retailing:

Organized retailing is spreading and making its presence felt in different parts of

the country. The trend in grocery retailing, however, has been slightly different

with a growth concentration in the South.

However, the Mecca of retailing is undoubtedly Chennai. What was considered a

`traditional', conservative' and `cost-conscious' market, proved to be the home

ground for most of the successful retail names - Food World, Music World,

Health and Glow, Vitan, Subhiksha and Viveks -to name a few.

The choice of Chennai as the `retail capital' has surprised many, but a variety of

factors acted in its favour. Chennai, in spite of being a rapidly growing metropolis

offers reasonable real estate prices, one of the most critical elements for the

industry. Chennai has been witnessing a high industrial growth and increasing

presence of the MNCs, both in the IT sector as well as outside it. The industrial

boom has led to the emergence of new residential areas with aggregation of

professionals as well as a rapid increase in the number of `double-income'

households and growth of the nouveau riche/upper middle class with increased

purchasing power. This has been combined with the increasing need for touch

and feel shopping (especially for the large migrant population). All the factors

have acted favourably in nurturing the industry.

Consumer- the prime mover

A variety of factors seem to influence the growth in the retailing industry.

`Consumer Pull', however, seems to be the most important driving factor behind

the sustenance of the industry.

In this context, a brief survey among consumers across income segments to

understand their spending pattern. An analysis of the `monthly purchase basket

of the consumers surveyed indicated that the average monthly household spend

38

on food and grocery related items varied across income segments. For instance,

in the case of upper income households, the average spend was around Rs

4,200 per month. As against this, the average spend in the case of a middleincome

household was around Rs. 2,850 and lower income households Rs.

1,250 per month. (This is computed from a sample of 100 customers having an

average family size of four).

Based on the distribution of the more than 15 lakh households in Chennai across

income segments and the average spend, a conservative estimate of the grocery

retailing potential at Chennai will be around Rs. 300 crores.

Besides increasing purchasing power, a variety of other factors also seem to fuel

the retailing boom. With increase in double-income households and

workingwomen, there is an increasing pressure on time with very little time being

available for leisure. In this scenario, consumers are seeking the convenience of

one-stop shopping, whereby they could have better utility of time. They are also

seeking speed and efficiency in processing, as a result. Being more aware,

consumers are on the lookout for more information, better quality and hygiene as

well as increased customer service. These changes in consumer behaviour also

augur well for the retailing industry.

However, in India there are no uniform trends with respect to consumer buying

behaviour. There are visible differences in the shopping pattern of consumers

across income segments as shown in the table.

Organized retailing has definitely made headway in the upper class. However,

even in this segment, items such as milk, fruits, vegetables and a significant

portion of `through-the-month' purchases seem to be done at traditional outlets.

The middle-income class prefer shopping for processed food and personal care

in supermarkets and fall back on traditional outlets for bulk shopping. Organized

retail outlets seem to be associated with branded items/special purchases.

Organized retailing does not seem to have made an impact on the lower class,

39

except for `curiosity' shopping.

The biggest question before organized retailers therefore, is whether this really

means a huge untapped potential for the organized retailers and whether the

conversion in mindset going to be easy.

40

41

IMPORTANCE TO TRAINING

How much importance your company gives to training of sales persons?

Very important 17.14%

Important 61.42%

Somewhat important 18.57%

Not at all important 2.85%

Table-1

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

veryimportant

important somewhatimportant

not at allimportant

Series2

Graph-1

The following graph shows the details of importance given to the training of sales people

by the company. Most of the companies have given it lot of importance to training. Few

companies rate it as most important factor. So we can clearly see that there is lot of

importance given to training in the retail industry in Bathinda.

Inference: 78% of the respondents feel that training of sales people is very important.

ASSESSMENT OF THE TRAINING NEEDS

42

How training needs of sales people are assessed? Based on

Performance evaluation 0%

Changes in product or market 1.42%

Job description 98.57%

Any other 0%

Table-2

performanceevaluation

changes inproducts/marketsjob decription

any other

Graph-2

This graph gives the details of how the training needs of the sales people are assessed.

Most of the companies do it on the basis of the job description of the sales people. Few

companies do it when there is any change in the product or the market as well.

Inference: 98% of the companies assess the training needs based on the job description.

NUMBER OF SALES PEOPLE WORKING IN BATHINDA

What is the strength of your sales force in?

43

a) Bathinda

1-5 93%

6-10 5%

11-20 2%

>20 0%

Table-3

1 to 5

6 to 1011 to 20>20

Graph-3

This graph depicts the number of sales people working for the retail outlets in Bathinda.

Most of them have around one to five sales people working for them. Only few have

more than five sales people.

Inference: 93% of the company’s sales force in Bathinda ranges from 1-5 .

NUMBER OF SALES PEOPLE ALL OVER THE COUNTRY

b) All India

44

1-5 0%

6-10 0%

11-20 0%

>20 100%

Table-4

1 to 5

6 to 1011 to 20>20

Graph-4

This graph shows the number of sales people employed by the retail companies in the

country. It is clearly shown that all the companies have more than twenty sales people

employed in the whole country as a whole.

FREQUENCY OF CONDUCTING THE TRAINING PROGRAMME

How often the training programmes are conducted for the sales people?

Once a year 79.72%

45

Two or more times a year 2.70%

As and when needed 14.86%

Any other 2.70%

Table-5

0.00%10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00%90.00%

once ayear

two ormore

times ayear

as andwhen

needed

any other

Series2

Graph-5

The following graph shows how often the sales people of the retail industry are

provided with training. Most of the companies or the outlets provide them training

once in a year. And the rest of the retail sales people are given training as and when

required.

Inference: 79% of the companies conduct training programmes for their sales force

once in a year.

BUDGET FOR TRAINING

46

Do you have a yearly budget for training programmes?

Yes 36.36%

No 63.63%

Table-6

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

yes no

Series2

Graph-6

This graph shows weather there is any fixed budget for the training programmes for

the sales people in the retail industry. The graph shows that most of the companies

does not have any budget allocated for training purpose as such. But some companies

do have a budget for training but the managers of the retail outlets are not provided

with the clear numbers of it.

Inference: 63% of the retail companies say that they don’t have any fixed budget for

their training programmes.

AIMS AND OBJECTIVES OF TRAINING

What are the aims or objectives behind training your sales staff?

Increase current skills and knowledge 18.64%

47

Increase sales performance 54.23%

Motivating sales people 26.27%

Any other 0.84%

Table-7

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%in

crea

secu

rrent

ski

llsan

dkn

owle

dge

incr

ease

sale

spe

rform

ance

mot

ivat

ing

sale

s pe

ople

any

othe

r

Series2

Graph-7

This graph shows us the aims and objectives behind training the sales force in the retail

industry. Most of the retail sales people are trained to enhance their sales performance.

Rest of them are trained for improving upon the current skills and knowledge or for

motivating them to perform better.

Inference: according to 54% of the companies main objectives of training programmes is

to increase the sales performance. 26% of the companies do it for motivating sales people

also.

METHODS USED FOR TRAINING

What methods do you normally use for training programmes for sales persons?

Lectures 25%

48

Audio visions 0%

Product demonstration 0%

Role playing 0%

On the job training 75%

Business games 0%

Case discussions 0%

Any other 0%

Table-8

0%10%20%30%40%50%60%70%80%

lectures

audio

-visu

als

prod

uct d

emonstra

tion

role playin

g

on th

e job

train

ing

busin

ess g

ames

case

disc

ussions

any o

ther

Series2

Graph-8

This graph shows us the methods used in training the sales people in the retail industry.

Most of the retail sales people are trained by giving on the job training and by giving

lectures to them. So the best way to train the sales people in this industry is by giving

them on the job training.

Inference: most of the companies (75%) give on the job training to the sales people

PLACE OF TRAINING

Where does the training normally take place?

Company’s premises 97.14%

Hotels 1.42%

49

Any other 1.42%

Table-9

company's premiseshotelsany other

Graph-9

Here in this graph we can see that most of the times the sales people of retail industry are

trained in the company premises only. Only few of the companies take them to hotels or

some other place. So its most feasible to train the sales people of retail industry in the

outlets itself so that they get practical knowledge and experience at the time of learning

itself.

Inference: 97% of the training programmes takes place at companies premises.

WHY TRAIN SALES FORCE

What drives you for training your sales force?

Customer satisfaction survey 1.44%

50

Sales performance 94.20%

Competitors analysis 0%

Management feedback 4.34%

Any other 0%

Table-10

0%10%20%30%40%50%60%70%80%90%

100%cu

stom

ersa

tisfa

ctio

nsu

rvey

sale

spe

rform

ance

com

petit

or's

anal

ysis

man

agem

ent

feed

bac

k

any

othe

r

Series2

Graph-10

This graph shows the reason behind training the sales force. The basic reason that drives

the company to train the sales force. Most of the companies feel that it’s the sales

performance that drives the company to train their sales force and some times because of

the feedback given by the management. So the training is basically given to enhance the

sales performance of the sales people.

Inference: 94% of the respondents feel that it’s the sales performance which drives them

for training their sales force.

THE TRAINER

Who train your salesperson?

Faculty within the company 88.23%

51

Faculty from outside 0%

Combination of a and b 11.76%

Any other 0%

Table-11

0.00%10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00%90.00%

100.00%

faculty

with

in the c

ompany

faculty

from ou

tside

combin

ation

of a an

d b

any o

ther

Series2

Graph-11

This graph tells about who trains the sales people mostly. Most of the retail organizations

have their own faculty from the company itself. Some of the retail companies use both

faculty from the company and from outside some times. So by this graph we can see that

in retail industry the sales people are mostly trained by the faculty within the company.

Inference: 88% of the retail companies have the faculty from the company itself.

PRODUCT OR SERVICE

What type of product or services you sell?

FMCG or non durable products 18.82%

52

Durable products 81.17%

Industrial products 0%

Any other 0%

Table-12

0.00%

10.00%20.00%

30.00%40.00%

50.00%60.00%

70.00%80.00%90.00%

FMCG ornon

durable

durableproduct

industrialproduct

any other

Series2

Graph-12

This graph shows the details of the type of product or service provided by the company.

Most of them are into durable products and few of the companies are into FMCG

products.

Inference: 81% of the products or service provided by the retail organisations are

durables.

CONTENTS OF THE TRAINING

What are the contents of the training programmes for new and experienced sales person?

Product knowledge 32.22%

Selling techniques 30.80%

Market knowledge 28.43%

Negotiating skills 8.53%

53

Sales related marketing policies 0%

Competitors knowledge 0%

Any other 0%

Table-13

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

prod

uct

know

ledg

ese

lling

tech

niqu

esm

arke

tting

know

ledg

ene

gotia

ting

skill

ssa

les

rela

ted

com

petit

orkn

owle

dge

any

othe

r

Series2

Graph-13

The following graph gives us the details of what kind of content is provided to the sales

force in the training. They are mostly provided with product and market knowledge and

selling techniques. Some of the companies also provide them with the negotiating skills.

Inference: product knowledge is given the highest priority in the training programme.

TRAINING AIDS USED

What type of training aids are used in your training programmes?

OH projector 12.19%

LCD projector 14.63%

Black or White board 48.78%

None 24.39%

Table-14

54

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

OHprojector

LCDprojector

black orwhiteboard

none

Series2

Graph-14

This graph gives the details about the training aids used for training the sales force. Most

of the companies provide training with the help of black and white boards, few use OH

projectors and LCD projectors also. And lot of companies does not use any of these aids

during training the sales force.

Inference: 48% of the companies use black and white boards as the training aid.

INSTRUCTIONAL MATERIAL

What kind of instructional materials and training aids are provided?

Manuals or product leaflets 90.14%

Cases 0%

None 9.85%

Table-15

55

manual or productleaflets

cases

none

Graph-15

This graph gives the details about the instructional material provided during the training.

Maximum number of companies use only manual or leaflets that give the product details,

none of the companies give the case studies to the sales force. And few companies never

used any of these materials.

Inference: 90% of the companies use manuals or product leaflets as instructional

materials in training programmes.

QUESTIONNAIRE FOR THE SALES FORCE:

EFFECTIVENESS OF THE TRAINING

Has the training provided to you helped you in doing your job well?

Very much helpful 20.58%

Helpful 72.05%

Somewhat helpful 7.35%

Not helpful 0%

56

Not at all helpful 0%

Table-16

very much helpful

helpfulsome what helpfulnot helpful

no at all helpful

Graph-16

This graph shows us the level of help that the sales force gained by under going the

training programme. It is seen that most of the sales people get lot of help from training.

There is no negative impact or results of training at all.

Inference: 72%of the sales people feel that training programmes are helpful in doing their

job well

FREQUENCY OR TRAINING PROGRAMMES

How often the training is provided to you?

Once a year 78.58%

Once in two years 9.58%

Twice a year 2.73%

Any other 9.58%

Table-17

57

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

once ayear

once intwo years

twice ayear

any other

Series2

Graph-17

This graph shows how many times the training is provided to the sales people. Most of

the companies provide training only once in a year. Only few companies provide training

more than once or even less than that.

Inference: most of the sales people (78%) are provided training once in a year.

SUGGESTION BY THE SALES FORCE

Any suggestions for improving the training programmes?

Contents 10.14%

Method used 2.89%

Trainers 14.49%

Evaluation method used 2.89%

No suggestions 69.56%

Table-18

58

0.00%10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00%

conte

nts

method

s use

d

traine

rs

evalu

ation

meth

od us

ed

no su

ggesti

ons

Series2

Graph-18

This graph shows the details about what the sales people suggest about the training for its

betterment. Most of them have no suggestions and few of them suggest to improve in the

case of trainer and the contents used or provided.

Inference: 69% of the salesforce have no suggestions for improving the training

programme.

TRAINING NEEDS

In which areas of your selling job you need training?

Selling techniques 22.97%

Negotiating skills 9.79%

Communication skills 22.29%

Product knowledge 22.63%

Market knowledge 20.94%

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Retailing operations 0%

Consumer behaviors 1.35%

Any other 0%

Table19

selling techniques

negotiating skills

communicationskillsproduct knowledge

marketingknowledge

consumer behavior

Graph-19

This graph shows us the areas in which the sales force feels they need training. The rate

the selling techniques, communication skills, product and market knowledge as their first

priorities.

Inference: selling techniques (22%), communication skills (22%), product knowledge

(22%), market knowledge (20%) are the areas which are prioritized by the sales people.

EXPERIENCE OF SALES PEOPLE

How many years of experience do you have in selling?

0-6 months 50%

7-24 months 50%

25-60 months 0%

>5 years 0%

Table-20

60

0%

10%

20%

30%

40%

50%

60%

0 to 6months

7 to 24months

25 to 60months

>5 years

Series2

Graph-20

This graph gives the details of the experience that the sales people have in retail industry.

Most of them have either 6 months or at max 2years. This shows that most of the sales

people the retail industry don’t stick to this industry for a long time.

Inference: sales people in this industry do not have experience of more than 2 years.

QUALIFICATION OF THE SALES FORCE

Your qualification.

Below SSLC 2.38%

SSLC 95.23%

Graduation 2.8%

Any other 0%

Table-21

61

below SSLC

SSLCgraduationanyother

Graph-21

The following graph gives the educational details of the sales force in retain industry.

Most of the sales people in this industry are not highly educated. They have the minimum

qualification required to do the job. Almost all of them are either SSLC pass or even

under that.

Inference: 95% of the sales people’ qualification is SSLC.

INCOME OF SALES FORCE

Your monthly income (Rs)

<3000 7.35%

3000-5000 70.58%

5000-7500 22.05%

7500-10000 0%

>10000 0%

Table-22

62

<30003001 to 5000

5001 to 75007500 to 10000

>10000

Table-22

This graph gives the details about the income of the sales force in retail industry. Most of

the sales people get between three to five thousands per month. Only few get five to

seven and a half thousands per month. So the income level of sales people in this industry

is very less.

Inference: 705 of sales force’ monthly income ranges from 3000 to 5000.

COMMISION AND INCENTIVES

Does your income include commission or incentives?

Only fixed salary 98.33%

Only commission 0%

Some percent commission 0%

Fixed salary + commission 1.66%

Any other 0%

Table-23

63

0.00%

20.00%40.00%

60.00%80.00%

100.00%120.00%

only

fixed

salary

only

commisi

on

some p

ercen

t com

mision

fixed

salar

y+ co

mmision

any o

ther

Series2

Graph-23

This graph shows us the type of compensation paid to the sales people in retail industry.

Most of the companies pay only fixed salaries to them, only few provide for incentives

based on the performance.

Inference: 98% of sales people have only fixed salary in this industry.

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FINDINGS:

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1. The companies in retail industry give a lot of importance (79%) to the training of

sales people.

2. The training needs of sales people are assessed mostly (98%) on the basis of their

job description.

3. Most of the retail outlets (93%) have around 1 to 5 sales people working for them.

4. The training in most of the companies (79%) is provided only once in a year.

5. Most of the companies (63%) do not have any fixed budget for training their sales

people.

6. Most of the companies (25%) use lectures and on the job training (75%) as the

training methods.

7. The training takes place in the company premises itself.

8. Product knowledge, selling techniques, market knowledge and negotiating skills

are given the most importance in training the sales force in retail industry.

9. Black and white boards (50%) and product manuals (90%) are used as training

aids in the training sessions.

10. Most (93%) of the sales people feel training is very helpful in doing their job well.

11. Most of the companies in retail industry have employed sales people with low

qualification such as SSLC (95%) and Graduation (3%).

12. Most of the retail companies (70%) give salaries between 3 thousands to 5

thousands per month and mostly (98%) they give only fixed salaries, without any

incentives.

CONCLUSION:

The nature of training itself is undergoing a transformation. Organizational

expectations for training have shifted dramatically. The pronounced change is a new and

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vigorous justification of the cost of training based on Return on Investment(ROI) and

organizational impact. This transition has been driven by the competitive nature of the

international economy.

In Retail Industry which is in boom from past one decade there is a drastic change in

the way the business is run. So the people in this industry are also changing with more

professional outlook with more knowledge and skills to impress the consumers and make

good sales at the end of the day.

The study indicates that training of sales people is given importance to greater extent to

meet the requirements. Basically the assessment of the training needs is done by

Companies on the basis of job description of the salespeople. The frequency of

conducting the training programme to sales people in retail industry is mostly once in a

year and most retailers do not have any fixed budget allocated for training programmes.

The nature of training itself is undergoing a transformation. As training has moved

from satisfying trainees to improving organizational and sales performance.

Effective sales training is the foundation upon which long term sales success is built.

Hence the study indicates that for effectiveness of training programmes the sales people

are given on the job training at the company premises. Most of retail organisations have

their own faculty from the company as the trainer. Most of them use black and white

board in the training sessions as their aids, and very few use overhead and LCD

Projectors.

The ability to generate and apply knowledge is a competitive advantage and in order to

sustain competitive advantage of sales people they are provided with product knowledge,

selling skills, and market knowledge through training.

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The instructional material provided during the training is manuals or leaflets that give

product details. However, case method of studies, role-plays, CDs is not used at all by

any retailer in the training programmes.

The study has also provided an insight in understanding the sales people point of view

with regards to the training programmes that are provided to them by the company. Sales

people feel the training programmes are helpful in meeting the requirements of the

organisation. Most of them are satisfied with the training being conducted once in a year.

The areas included in training such as selling techniques, communication skills, product

knowledge and market knowledge have served the sales people’s expectations to a great

extent. The experience of sales people is ranging from six months to two years. Most of

the sales people in this industry are not highly educated, they have minimum qualification

required to do the job, and most of them are SSLC passed. Their salary ranges from

Rs3000 to Rs5000 (per month) which is fixed and only few companies provide for

incentives based on performance (1.66%).

Finally to conclude, the training aspects of sales people in retail industry of Bathinda

are well taken care. The companies now are giving a lot of importance to the training, as

it makes a lot of difference to the success of their business and to sustain in the market.

There are a few improvements required which can enable the sales people with even

better skills to impress, convince and handle the customers very well.

SUGGESTIONS

Their should be better quality of trainers and the better methods of training

needed as some of the sales people are not very satisfied with them.

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Most of the companies provide training only once in a year which is not sufficient

as the market is very dynamic, hence the sales people should be provided with

training as and when needed to update their knowledge in addition to once a year

training.

Specific training objectives should be outlined on the basis of performance

parameters, job description, and type of product and market.

The trainee should be helped to see the need for training by making him aware of

the personal benefits he can achieve through better performance.

If necessary, a combination of training methods should be selected such as role

play, case method, video cassette/CD, lectures, demonstration of product etc.

The trainees should be provided with regular, constructive feedback concerning

their progress in training and implementation of the newly acquired abilities.

In retail industry it is seen that the sales people are not highly educated, hence, the

training content should be very simple and easy to understand.

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70

ANNEXURE

1) How much importance your company gives to training of salespersons? Why?o Very importanto Importanto Somewhat importanto Not at all important.

2) How training needs of salespeople are assessed? Based ono Performance Evaluation o Changes in products/marketso Job descriptiono Any other

3) What is the strength of your sales force ono All Indiao Bathinda office

Bathinda All India1-5 1-56-10 6-1011-20 11-20>20 >20

4) How often the training programmes are conducted for sales people?o Once a yearo Two or more times a yearo As and when neededo Any other…………………..

5) Do you have a yearly budget for training programmes?o Yeso Noo If Yes how much……………..?

6) What are the aims or objectives behind training your sales staff?o Increase current skills and Knowledgeo Increase sales performanceo Motivating sales personso Any other ……………………

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7) What methods do you normally use for training programmes for sales persons?o Lectureso Audio-visualso Product demonstrationso Role playingo On the job trainingo Business gameso Case discussionso Any other………………

8) Where does the training normally take place?o Company’s premiseso Hotelso Any other..............

9) What drives you for training your sales force?o Customer satisfaction surveyo Sales performanceo Competitor’s analysiso Management feedbacko Any other………………

10) Who train your sales person?o Faculty within the companyo Faculty from outsideo Combination of a and bo Any other…………………..

11) What type of products /services you sell?

o FMCG or Non-Durable productso Durable productso Industrial productso Any other………………

12) What are the contents of the training programmes for New and Experienced sales persons?o Product knowledgeo Selling techniqueso Market knowledgeo Negotiating skillso Sales related marketing policieso Competitors knowledge

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o Any other

13) What type of training aids are used in your training programmes?o OH projectoro LCD projectoro Black/white boardso Any other…….

14) What kind of instructional materials and training aids are provided?o Manuals/product leafletso Caseso Any other……….

Thank you

Questionnaire for the sales force

1) Has the training provided to you helped you in doing your job well?o Very much helpfulo Helpfulo Somewhat helpfulo Not helpfulo Not at all helpful.

2) How often the training is provided to you?o Once a yearo Once in two yearso Twice a yearo Any other…………

3) Any suggestions for improving the training programmes?o Contentso Methods usedo Trainerso Evaluation method usedo Any other……..

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4) In which areas of your selling job you need training?o Selling techniqueso Negotiating skillso Communication skillso Product knowledgeo Market knowledgeo Retailing operationso Consumer behaviouro Any other………..

5) How many years of experience do you have in selling?o 0-6monthso 7-24monthso 25-5yearso >5years

6) Your Qualification:o Below SSLCo SSLCo Graduateo Any other………….

7) Your monthly Income (Rs)o < Rs 3000o 3001-5000o 5000-7500o 7501-10000o >10000

8) Does your income include commission or incentive?o Only fixed salaryo Only commissiono ………….% of commissiono Fixed salary + ……………. Commission.o Any other………………

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BILIOGRAPHY:

BOOKS REFERRED:

TRAINING AND DEVELOPMENTBY GOLDSTEIN

WEBSITES:

www.businessballs.comwww.google.com

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