Plan overfulfilment. Vyacheslav Archipenko: planned overfulfillment of the plan
Planning is one of the most effective tools to achieve any goals, and of course, for successful business.
Sales planning is one of the elements in the chain overall strategy enterprise development. Can a sales team work without a plan?
Yes, it can, but the efficiency of its work will then be much lower. Want to increase production and / or sales - then start with planning!
Stages of drawing up a plan
Doing planning only on the basis of results and income received in past periods is the simplest, but very erroneous method. This leads to a “typical situation” when plans seem to exist, but their implementation and even overfulfillment does not require any additional efforts from managers. Of course, the analysis of previous periods, both for wholesalers and retail, and for production is very important and helps to identify seasonality. But this is only one of the steps in sales planning.
1. Definition of the main goal of the company
The first step is to define the goal. The goal should have characteristics by which it can be assessed qualitatively and quantitatively. Therefore, when formulating the goal, take into account:
- concreteness and measurability of the result;
- time limit to achieve the goal;
- achievable and realistic goal;
- "challenging" the goal - the achieved result can be proud of.
2. Assessment of economic environment factors
Here, general indicators of the assessment of the territory should be considered and taken into account: the population, the level of income in the region, the presence of competitors, consumer preferences and the purchasing power of the population as a whole.
3. Assessment of market potential and sales potential
Market potential is the maximum quantity of a product that can be sold by all market participants. And the sales potential is the volume and income that can be received by a particular firm.
4. Analysis of sales of previous periods
This step is very important for understanding where the company is located, whether there is a seasonal demand for goods, what factors can affect the increase in revenue and volumes of both wholesale and retail trade.
5. Making a sales forecast
Sales planning is very different from forecasting. Because forecasting, based on the analysis of various factors, represents only possible scenarios for the development of the situation, taking into account market restrictions, but does not contain step by step instructions actions that would lead to the implementation of the plan and increase income.
To apply subjective and objective methods. Subjective Methods do not use analytical data, but are based on the subjective opinions of various groups of people:
- opinions of personnel employed in wholesale or retail trade;
- opinions of key leaders;
- Delphi method.
And objective methods are based on analytical and quantitative data:
- market testing;
- time series analysis (using historical data);
- statistical analysis of demand.
In practice, it is very difficult to choose the exact forecasting method, each of them can show an error, so it is better to use several methods. And often firms use scenario analysis. Usually two forecasts are made - pessimistic and optimistic. Based on the data of a pessimistic forecast, since the company must be sure that even in an unfavorable situation it will be able to receive certain income and fulfill all obligations. The forecast is always less than the market potential and sales potential.
6. Sales forecast adjustment
If the forecast and goals of the company differ significantly, then it is necessary to make adjustments to either the marketing program or the goals. Such a sales forecasting process will allow you to determine the real indicators for creating a plan.
7. Sales planning
The importance of such a tool as a sales plan in the enterprise management chain cannot be overestimated. Since it is sales volume planning that allows you to build plans for production, procurement, labor and other resources based on estimated income. As a managerial resource, sales planning includes the classic elements of the management cycle (according to the Failol methodology): planning, organization, control, coordination, motivation.
8. Sales organization
For successful implementation plan, lowered "from above", it is necessary to structure it according to various sections. This will give a clear understanding from the “bottom”, to the sales staff, of the requirements of the plan and how to implement it:
- By region - how much and where will be sold;
- By time - how much and when we will sell;
- By product - how much and what will be sold;
- By customers (or distribution channels) - how much and to whom we will sell;
- For sellers - how much and who will sell;
- By the nature of the sale (guaranteed and planned) - how much and how will be sold.
Guaranteed sales do not depend on the person representing the company, it is already formed demand. But the revenue from planned transactions depends largely on the efforts of the representative, and special attention should be paid to them when withdrawing new products, selecting new target customers or entering new territories in both retail and wholesale.
9. Monitoring the implementation of the plan
It is necessary to monitor regularly not only the implementation of each parameter of the plan structure, but also the quality of planning.
10. Plan coordination
If the actual sales for any segment of the plan differ significantly from the planned indicators (overfulfillment or non-fulfillment), then this indicates a poor quality of planning, so it is necessary to analyze the causes and take measures, coordinate the plan.
Overfulfillment of the plan is possible because the potential of the product (customer, region, seller or marketing activities) was underestimated or planning was done on the basis of past periods. And the underfulfillment of the plan is most likely a consequence of the insufficient activity of the manager. Because it is possible to wait for all customers to come and buy themselves, only with “guaranteed demand”. In all other cases, all monthly plans of the department must be projected into the daily work plans of managers.
11. Motivating staff to fulfill the sales plan
Every manager and leader should have good motivation. Their salary should directly depend both on the revenue of the entire company as a whole, and on the implementation of their individual plan. Separately, it is worth rewarding the implementation of the plan “in assortment groups”. The fulfillment of the plan should lie in the range, for example, from 90 to 105%, and overfulfillment from 105 to 120%.
Specialized programs for planning
Many companies carry out sales planning using excel spreadsheets. But there are a number of programs that can significantly simplify and speed up the development process, and most importantly, control over the implementation of the plan. They offer a wide range of data analysis features that are not available using standard excel features.
One such program is the Operational Plan, which is suitable for wholesale trade and production, as well as its possible use for retail network. Planning using excel is increasingly being replaced by specialized programs.
The goals and objectives of sales planning are inextricably linked. Planning should begin with a clearly defined goal - what exactly and in what time frame you want to achieve. And having decomposed a certain goal into tasks, see what and how to do to achieve the goal. For a clearer allocation of tasks, it will be necessary to break down the key goal of the company into components (into 3-5 goals of the second level) and formulate tasks to achieve each of them.
An example of developing goals and objectives in this way for manufacturers or a wholesaler is given in the table.
| № | Components of the overall goal for the company (goals of the second level) | Tasks to achieve the goal |
|---|---|---|
| 1 | The commercial goal is to fulfill the sales plan for product B in the amount of 500 thousand rubles. per month in territory A in the period from 01/01/14 to 12/31/14 |
|
| 2 | Business goal to increase the average shipment amount by 15% between 02/01/14 and 04/01/14 |
|
| 3 | Qualitative goal to increase the number of customers by 10% in the period from 01/01/14 to 07/01/14 in territory A |
|
| 4 | Qualitative goal to develop and hold an event for 50 clients (30% key and 70% potential) during the period from 02/01/14 to 03/01/14 |
|
Here, the company's key goal is to fulfill the sales plan in the period from 01/01/2014 to 12/31/2014 in the amount of 6 million rubles. in territory A (500 thousand rubles per month x 12 months) - decomposed into commercial (or quantitative) and qualitative components and into 4 goals of the second level.
The Lipetsk company Akula Trading planned to increase its revenue by 7% this year. It may not be possible to overfulfill this plan, but its founder is confident in achieving the figure itself.
Vyacheslav, how is autumn going in your company?
Amazing! Although of course, modern realities are somewhat alarming. October was not an outstanding month, but sales were on the rise. The first decade was not too pleased, but the subsequent ones made a breakthrough. Approximately the same dynamics is observed in November.
You understand that the environment is changing. Now the market is a completely different picture than it was in 2011-2013, and even in 2015.
How is 2018 different from 2015?
In the winter of 2015, the hype continued, which began in the fall of 2014, when there was a jump in the dollar. Then came a sobering up: the dollar rose, and salaries remained at the same level. Awareness of how much you have become poorer in the currency component. But people more or less quickly adapted, and already in 2016 sales stabilized. Last year we saw weak growth compared to 2016. This year, literally until October 1, also went with growth. And in October of this year, there was a feeling that trenches were dug in front of the shops and blocked access. The flow of visitors dropped sharply. Most likely, this is due to the weather, the change of season. You need to warm up, you need to put on shoes, and the clock will wait. Toward the end, everything returned to normal, but in the end, October and November are below average for us.
That is, until October, your sales were on average higher than last year?
Yes. We went exactly according to plan, grew by 5% in quantity and about 10% in money. Unlike many, our average check has grown. We ourselves were surprised. In many months, we sold the same or even a little less watches than last year, and the revenue was better.
For what? Has the set of brands or the assortment within the brands changed?
No, the representation of these brands has changed. We started cultivating in 2017 and continued in this year. We took the matrix that we have as a basis and looked at where we are not improving, where we are losing competition in relation to our neighbors from other cities and foreign stores. And we concluded that, first of all, we should once again pay attention to the work of sellers. This is 50% success. The ability of the seller to show loyalty to the buyer, to meet, prompt, bring to the purchase is necessary. Not just to conduct a tour, as in a museum, but to bring it to a purchase. Because, as a rule, after reviewing the watch, the seller lets the buyer make his own choice. And bringing to purchase is a very important factor.
We analyzed the collections, what is missing according to our standards and according to the recommendations given by distributors. The assortment was corrected, mainly, of course, in the direction of increase.
The third point was the loyalty program. But discounts are dangerous. You can slide down and then not return to normal sales.
All this allowed us to maintain the planned growth rates. Maybe not too big, but sure: about 5% in quantity and 10% in amount. Even with the fourth of October and November, I think we will close the year with the planned growth. We will sell 5% more watches than last year. We are unlikely to add 10% in total, but we will come out by 7%.
How many people are listed in your CRM?
Today there are probably about 5,000 customers. We started building the base a very long time ago.
Wow! The population of Lipetsk is about 400,000, right? That is, you have every hundredth registered, including the disabled, babies ...
We have half a million, financially secure population, probably about 100,000 people. Accordingly, 5% are our regular customers.
How much did the development of software for CRM cost?
About 300,000 rubles. At the time it was quite a lot. At that time, I doubted how justified it was. But in the end, I'm happy. Now the issue of customer loyalty to the point of sale is at the forefront. Competition is growing, new outlets are opening, and online commerce is gaining momentum. And it is becoming more and more difficult for us, in the regions, to work. We cannot imagine the whole range of watches live. Creating your own regional online stores is an absolutely stupid exercise, not economically justified.
But, nevertheless, you have the same website ...
There is a website, but it is not a store, but a showcase. We will redo it next year. The site is already three years old, but here, as in restaurant business The interior needs to be updated every three years. The filling may remain the same, but the external visualization should change. Moreover, it is already a little outdated.
The site for us is a showcase, our representation in the virtual space. Many come from photographs, show and say: I want this model. In the total flow, this is up to 5%. It's not much, but the percentage is growing. The virtual showcase also helps in working to order. From three to ten hours a month we bring to order.
Was it not scary to increase the collection? Now everyone is moaning that sales are small ...
No, it's not scary. We plan to expand our collections in 2019 as well. Today we have a collection of Tissot - more than 300 items.
That is, you can hang a sign "Tissot Boutique" ...
No. Even 360 Tissot is fine, because this brand gives a turnover of more than 10%. An average of 33 pieces from a collection of 300 are sold per month. We and Certina have 120 positions.
But the question is not only in quantity. The assortment is a lot of factors: the work of highly qualified personnel, and the ability to correctly compose a collection that includes current positions, guess the tops of sales.
A wide and correct assortment, together with the loyalty program and the work of the staff, are the main factors of competition. I consider such competition absolutely normal. Then the client himself will decide which store to choose. Therefore, for us there is no such thing as a decrease in sales. Within a year, month to month, the numbers fluctuate, of course. But in general, in 2018, we planned an increase of 7%. And we planned to overfulfill the plan. We may not overfulfill it, but we will do it for sure.
Comment from Chackall
If you are having trouble with the Ancient Seedbearer part, its worth noting that it is NOT in the area that you kill the first 25 mobs(the elite adds area), its BEHIND, around 44, 65.This information is only relevant if you went to the front first. If you went to the right place first, ignore this.
Comment from pinkphoenix
Missing Bonus ObjectivesThis is mainly for those people, like myself, that have been using an addon to help them quest through the wonderful lands of Draenor.
The addons might direct you to complete multiple bonus objectives in a specific location. However, some of these bonus objectives no longer exist! I spent a long while running back and forth trying to trigger the quest before I looked in my achievement window.
If the particular bonus objective that the addon is directing you to complete is NOT listed in the progress of Plan Overflow , then it is most definitely not still in the game!
Hope this has helped!
Comment from Blackace26
So, if you"re like me, and running around doing just the bonus objectives and collecting items, without doing any quests, you"ll run into the problem I had for the following:South Gronn Canyon or Evermorn Springs
Affliction Ridge or The Razorbloom
Stonemaul Arena or Tangleheart
These Bonus Objectives will not be available until you make your Outpost! I did the first 6 with no issue. And after running the map twice to the other locations, decided to get my outpost created. Upon creating the Sparring Arena, Tangleheart, Razorbloom and Evermorn Springs were unlocked. So I would assume that Affliction Ridge, South Gronn Canyon and Stonemaul Arena are from choosing the Logging Camp.
Comment from Nilyna
For tom tom users, the exact coordinates to the (center) of the Bonus Objectives below.Make sure to get your Outpost first, as Blackace26 mentioned, so you can do all of them.
/way 40.73, 54.67 Brimstone Springs
/way 46.58, 47.79 Valley of Destruction
/way 51.35, 77.69 Forgotten Caves entrance
/way 52.00, 67.02 Mistcreep Mire
/way 50.59, 77.75 Ruins of the First Bastion (1)
-or-
/way 49.15, 80.82 Ruins of the First Bastion (2)
/way 47.28, 64.88 Affliction Ridge
/way 39.66, 66.62 Stonemaul Arena
/way 45.12, 51.80 South Gronn Canyon
/way 61.89, 54.58 Iyun Weald
Comment from amirof
Plan overfulfilmentThe following bonus objectives are available in general:
swamp lowland
Ruins of the first bastion
Thicket Iyu
Valley of Destruction
Forgotten Caves
The following bonus objectives are available after completing We Need an Outpost . Once done with one outpost quest chains, quest completests will want to switch between outposts to complete missed quests and bonus objectives.
There is one bonus objective that is not listed as part of Plan Overrun , for quest completests:
Lowland of tailsmen
Use these commands to check if you are missing a bonus objective. Put upt to 6 of these commands in one Macro. Note the quest numbet in the brackets. I have put the minimum, to make room in macros, also grouped the commands for easy copy-paste.
General:
/dump IsQuestFlaggedCompleted(36603)
/dump IsQuestFlaggedCompleted(36563)
/dump IsQuestFlaggedCompleted(35881)
/dump IsQuestFlaggedCompleted(36571)
/dump IsQuestFlaggedCompleted(36480)
/dump IsQuestFlaggedCompleted(34724)
Lumberyard:
/dump IsQuestFlaggedCompleted(36476)
/dump IsQuestFlaggedCompleted(36473)
/dump IsQuestFlaggedCompleted(36566)
Sparing Arena:
/dump IsQuestFlaggedCompleted(36504)
/dump IsQuestFlaggedCompleted(36500)
/dump IsQuestFlaggedCompleted(36564)
unlisted:
/dump IsQuestFlaggedCompleted(36520)
