Introduction
Every person in the world has built a construction set, trying to make something unique. The LEGO Group produces construction sets that allow consumers to build different models. The company believes that everyone can find their collection and promises quality and ease assembly. Consumers value Lego for many characteristics, including advertising and relevant campaigns aimed at the target audience. Like many other companies, Lego is not only interested in satisfying users but also in increasing sales. To create an effective sales plan, a company should set goals, strategies, and tactics, consider employee motivation and prepare an action evaluation plan.
Sales Goals: Business Planning
The Lego Company has been producing bricks – parts from which models have been built – for over 80 years. The company’s mission has not changed since its inception: to create a quality product that is fun for adults and children. Setting sales goals for Lego should be charged with three criteria in mind: demand, consumer, and transaction. These three components allow creating effective strategic plans that consider the market situation, the number of interested audiences, and their ratio and evaluate the effectiveness of direct sales. The most effective way to set goals is to use SMART technology (Hughes & Ogilvie, 2019). SMART technology helps one to summarize the available information and convert it into a specific purpose, considering the company’s time, audience, and resources. The sales plan should include three components based on SMART technology.
The first action employees take to make successful sales is market demand research. A company is preparing a new product to coincide with its 90th anniversary. The sales department should analyze the market and estimate how long it will take for the new product to pay for itself. The company cannot achieve high sales if there are not enough employees and weak product flow. Another goal arising from the first is to attract new customers. If the company believes that the market is weak, it is wise to attract a new audience. The sales department poses the question: how the unique product appeals to potential consumers? Then, the company sets a third goal: conduct effective transactions with customers (Panagopoulos et al., 2017). To do this, Lego can allocate funds for staff training, lay down a system for evaluating deals, and stimulate external communications. The listed goals are set by SMART technology because they have specific instructions; the result is measurable, achievable, and time-limited; the plans are relevant for the company.
Sales Strategies and Tactics: Development Prospects
Sales strategies are the overall plan to which a company adheres in its marketing campaign. It is a set of methods and ways managers can execute the sales plan. Strategies contain clear priorities, results, rules, and reasonable goals. Two strategies can accomplish the objectives for a company like Lego, which has been in the market for a long time. The first is entering new niches and participating in events to show the product and current technology. It is worth noting that Lego had several environmental concerns, so it is good to pay attention to bringing in partners from a “green” community (Ritz, 2020). In this way, the company demonstrates its interest in caring for the planet, and consumers are willing to buy this product. The second is a strategy to increase sales volume and overall efficiency. Releasing a new product increases the number of goods, and the new audience can bite on it (Panagopoulos et al., 2017). Introduction of new product attracts customers to buy both the new collection and classic models.
Lego can use tactics that increases sales and reduce time to reach goals to follow its strategies. Tactics work through communications, and it is important to consider external and internal channels. One external tactic is an influential sales scheme that creates comfort place to sell. The company wants to attract a new audience and uses creativity with the first purchase to build a long-term relationship with the customer (Panagopoulos et al., 2017). In addition, a seller can offer recent consumer surveys and questionnaires to give feedback and suggestions. Another outer tactic is content marketing: newsletters or magazines in which the company talks about the current situation in the world (Hughes & Ogilvie, 2019). Lego starts to apply more environmentally friendly products – brochures cover the world’s environmental crisis. Such techniques help to get a pleasant response from consumers. Among the apparent internal tactics, there are automating sales processes and motivating employees.
The Motivation of Employees
Motivation is the critical psycho-emotional component of work, significantly increasing work effectiveness. The success of implementing a marketing campaign depends on how rank-and-file employees do their work (Patil & Syam, 2018). The sales plan contains two construction sets that need to be sold: one suitable for an older audience and children. The salespeople’s job is to stimulate the sale of an additional set depending on the age category of the product they have already purchased. However, salespeople do not pay attention or think which deals will be good (Patil & Syam, 2018). Point-of-sale managers should motivate and support their employees to make changes.
Motivation can vary, but it is necessary to head the staff properly. Managers can change their disposal and adjust it for personal inspiration. In addition, they should see why their employees work: for some, it is just money; for others, it is an idea. It is crucial to prioritize and incentivize people accurately: offer contests for the number of sales, based on the results of which offer a bonus or a company product (Patil & Syam, 2018). Managers need to create a comfortable environment for work and competently distribute personnel by departments. For example, some people like to sell sets of cars and machinery, while others are interested in space kit. Proper distribution will increase sales and raise overall comfort in the workplace.
Measuring Success
The sales plan aims to define strategically essential components of company’s mission because it addresses specific goals and key objectives. Lego is a large company with worldwide distributors, which allows operating effectively in different markets. The campaigns’ assessment comprises the entire sales result, rather than disjointed outlets. The company evaluates various industries and adjusts goals from point to point, but they should set global objectives with overall results in mind.
Evaluation consists of an analysis of objective and subjective criteria. Accurate data contains quantitative characteristics, such as the number of units of each model sold in a season. A manager needs to determine the effectiveness of each employee: total sales according to department. In addition, it is possible to estimate the number of appeals that the employee was able to solve. Subjective criteria include evaluating the seller’s knowledges of work, attitude towards it, and the general atmosphere at the sales outlet. Managers can check out sales by asking questions: will a 10-year-old child assemble a construction set with 5 thousand parts, or is a set with small pieces suitable for a 3-year-old child. It assess how aware employees are about their work and analyze the impact on overall revenue.
A sales evaluation also includes an analysis of products and their prices. This evaluation influences pricing and changes in sales strategy. Managers assess the number of products sold and may notice that designs with “for girls” tags do not sell, while the “for boys” appeals to children of both genders. Consequently, they should reconsider their attitude to dividing toys by gender and adjust this policy. It is also possible to analyze why the product does not sell: poor advertising campaign, modest packaging, and high price (Hughes & Ogilvie, 2019). Based on the outcomes of assessments, the sales department determines the prospects for the future and alters the processes still in place.
The Analysis of the Plan and Conclusions
Integrating this sales plan will allow the company to improve its relationships with partners and attract new audiences by creating a unique product. The sales plan includes specific goals and strategies focused on market analysis, attracting new audience, and increasing sales effectiveness. Through internal communication channels, the company is able to motivate employees and improve the overall comfort of the workplace. External communications are made up of surveys and questionnaires for new audiences, which allows for adjustments in general sales tactics. The company is expected to attract partners by switching to more environmentally friendly production and changing its gender policy. Construction sets are not a product of necessity, but through a consumer-centric plan, the company can increase its sales and credibility.
References
Hughes, D. E. & Ogilvie, J. L. (2019). When sales becomes service: The evolution of the professional selling role and an organic model of frontline ambidexterity. Journal of Service Research, 23(1), 22-32. Web.
Panagopoulos, N. G., Rapp, A. A., & Ogilvie, J. L. (2017). Salesperson solution involvement and sales performance: The contingent role of supplier firm and customer-supplier relationship characteristics. Journal of Marketing, 81(4), 144-164. Web.
Patil, A., & Syam, N. (2018). How do specialized personal incentives enhance sales performance? The benefits of steady sales growth. Journal of Marketing, 82(1), 57-73. Web.
Ritz, R. A. (2020). Climate targets, executive compensation, and corporate strategy. University of Cambridge. Web.