Sales Manager Sales Manager
UNIT 3 CASE STUDY – VALENTINO CHOCOLATES BACKGROUND
Expansion
The company started by selling raw chocolate to other chocolate manufacturers. These manufacturers then used it to make their own products. Later, Valentino began selling packaged chocolates directly to the public and created the Valentino brand.
The company expanded fast. It now has almost 300 employees, 75 company-owned shops, and a turnover of €90 million. However, in the last two years, sales growth has slowed down and costs have risen. This has caused a fall in profits (see Chart 1)
Chart i: Summary of the last three years' results
Last year Two years ago Three years ago Turnover €90.5 m €87.2 m €62.6 m Pre-tax
profits €6.4 m €8.2 m €8.9 m
Reasons for falling profits
• Prices
There is widespread price cutting in the industry.
• Production
Factory machines often break down.
• Demand
Demand for its Classic Bar is falling. Valentino's new products, biscuits and cakes, are not selling well (see Chart 2).
• Staff morale
Sales staff are becoming demotivated.
Chart 2: Valentino's main products (as a % of turnover)
6 1 5
25
8 55
Valentino Classic Bars Raw chocolate
Packaged chocolates Exclusive handmade chocolate Chocolate drinks Biscuits and cakes
Valentino chocolates are made in Turin, Italy. They are recognized as luxury products with a delicious and unique taste. Some of Valentino's finest chocolates are handmade and have won many international awards.
UNIT 3
TASK
WRITING
The future
The company's owners want Valentino to become an international business. They believe it makes the finest chocolates in the world. This year they have set aside €1.5 million to invest in their company. Their problem is to decide how to spend the money so that the company will continue to expand. Recently, a well-known business journal did a profile of the company. It ended as follows:
The ways in which Valentino could invest the €1.5 million are listed in Chart .
Chart 3: Investment options
Option Cost Benefit
1 Extend the factory €500,000 Increase the factory's capacity by 30%
2 Buy new machinery €200,000 End the delays caused by the old machines breaking down
3 Invest in more research and development
€200,000 Develop new products such as a low-fat chocolate, drink, new biscuits/cakes
4 Buy out a local competitor €1.5 million Reduce local competition
5 Establish a factory in the US €1.3 million Manufacture chocolates in a major new market 6 Launch a marketing campaign €500,000 Increase sales of all products
7 Finance a market survey and research trips to the US
€100,000 Assess the market potential for Valentino products. Contact agents
8 Invest in an existing group of cafes
€500,000 Become a partner in cafes which sell and promote Valentino chocolates
9 Set up online sales €150,000 Increase sales and profits
10 Buy a new fleet of cars €500,000 Increase motivation of the sales staff
You are directors of Valentino. Meet to discuss your investment plan.
1 Work in pairs. Decide how to spend the €1.5 million.
Prepare a presentation of your investment plan, with reasons for your choices.
2 Meet as one group and present your ideas.
3 As one group, agree on a final investment plan.
As a director of Valentino Chocolates, write a memo to your CEO outlining your investment plan. Give reasons for your choices. Begin like the example.
Writing file page 131
Valentino can continue to grow, but only if it develops new products and finds new markets.
Memo
To: CEO
From:
Subject: Investment Plan
In recent years Valentino has become one of Europe's leading brands of chocolate. It is now ready to become a successful international business.
The Board of Directors has agreed the following investmentplan: ...
UNIT A REVISION 1 Careers Modals
READING
Which of these sentences a) make a request, b) make an offer, c) talk about ability?
1 He can type 100 words per minute.
2 Would you like a hand with those bags?
3 She could sell more than all the other salespeople put together.
4 He could program computers in Basic when he was four.
5 Could you help me to write this e-mail-my Spanish isn't very good.
6 Can I get you something to drink?
7 I can dance the samba, but not the tango.
8 May I ask a question?
9 Please would you stop talking-I'm trying to concentrate.
10 They can organize the campaign very quickly.
Turn to the case study on page 12. Look at the information about the job of Sales Manager at Fast-Track. Read a) the requirements in the job description and b) the profile of the first candidate, Joanna Pelc.
Correct this application letter from the first candidate, Joanna Pelc. In most of the lines 1 to 5 there is one extra word that does not fit. One or two of the lines, however, are correct. If a line is correct, put a tick in the space next to that line. If there is an extra word in the line, write that word in the space.
ul. Nowogrodzka 29 01-215 Warsaw Poland Fast-Track Inc.
1225 Federal Street Boston,
MA 02110 USA
25 February 200-Dear Sir or Madam
I would like to apply for the job of Sales Manager for the Central and Eastern Europe area. I have worked at Fast-Track
1 since I left school 12 years of ago. I have had some of 1...
2 the best results in the sales team, with good knowledge 2 ...
3 of practical sales techniques. However, I also too have 3 ...
4 a Diploma in Marketing, which I obtained by doing 4 ...
5 evening classes at the University of in Warsaw 5 ...
Business School. I believe this combination of
practical experience and qualifications makes me an ideal candidate for the job that Fast-Track is now offering.
I am also developing my language skills. I learnt Russian at school. My English is quite good, and I am taking evening classes at the University Language Centre to improve my level. Of course, I'll be glad to say more about my suitability for the job if invited for an interview.
Yours faithfully Joanna Pelc
A
B
UNIT A
WRITING Now look at the information for Robert Kaminsky and Anna Belinski on page 13.
Write an application letter (not more than 100 words) from one of these candidates based on this information.
2 Selling online VOCABULARY
Modals
Complete the crossword.
1
- ••■
2
3 4
5
6
7
8 9 10
11
3 If you don't like it, you can ... it and we'll give you your money back. (6)
6 One of the problems of online sales:
... when the customer is not at home (8)
7 A building for storing goods (9) 8 Another word for buy, or something
that's bought (8)
11 A price reduction often expressed as a percentage of the original price (8)
1 We must ... our customers the best products and services. (5) 2 A buyer buys and a seller
... (5)
4 If you don't like it, you can
... it for something else of the same value. (8)
5 Something you think is cheap in relation to its real value (7)^
6 When you send the goods, you ship or ... them. (8)
9 Money given back to a customer who has returned goods (6)
10We don't have any at the moment.
We're out of (5)
In each of these pieces of advice to a traditional high street retailer, find which one of the alternatives is logically not possible.
1 Location is the most important thing. You... . ... find a place that lots of people pass every day.
a) must b) need to c) don't have to
2 Marketing is not as important for high street retailers as for online retailers, and you ...spend less on advertising than online retailers.
a) mustn't b) should c) need to
3 You can have a website with a few pages of basic information about your shops, but it... be very complicated.
a) should b) needn't c) doesn't have to
B
UNIT A
READING
4 Training staff to deal with customers in your shops is very important. They ... learn to be helpful to customers.
a) should b) need to c) mustn't
5 Staff ... also have good technical knowledge of the products they sell so as to be able to answer customers' questions.
a) needn't b) should c) must
6 Products ...be presented attractively if you want people to buy them.
a) need to b) shouldn't c) must
7 Unlike online retailers, you ... keep large stocks of goods in your shops.
a) don't have to b) needn't c) must
Read the text. For each statement l to 8 below choose a) true, b) false or c) doesn't say.
1 The writer is a well-known expert on the subject of online sales.
2 The article describes four types of market for online sales.
3 In the first type of market, very few people have access to a computer.
4 The writer thinks that it will take 30 years for online sales to develop in the first market described in the article.
5 In the second type of market, people don't like to give their credit card details online.
6 In the third type of market, people would buy everything online if they could.
7 The United Kingdom is a good example of the third kind of market.
8 The writer thinks online selling will last for 100 years.
3 Companies
SECTORS Match the sectors to the examples of products or services they offer.
1 chemicals a) computer programming 2 construction W b) supermarkets
3 finance c) plastics
4 IT d) cancer drugs
5 media e) bridges
6 Pharmaceuticals f) credit cards 7 retailing g) air services 8 telecommunications h) trucks
9 transport i) women's magazines
10 vehicle manufacturing i) telephone services
Online sales are at different stages of development in different parts of the world. Of course, in a lot of places, not many people have computers at work, and even fewer have them at home. Even mail order has not developed. People do their shopping in street markets and traditional shops, so the growth of e-commerce will be very slow there.
In other markets, consumers use computers a lot, but they are very nervous about giving their credit card details online: they are afraid that computer hackers may steal them.
The main job of online retailers is to persuade people that their details will be safe if they buy online.
In some places, shopping is no longer seen as a leisure activity. Traffic problems, the difficulty of parking, crowded shops and the high cost of goods in shops all mean that shopping is unpleasant. Thus, retailers have a big potential market. But even here, it will take a long time before people lose the need to touch and see certain types of goods before they buy them.
UNIT A
Use the information about the present simple and present continuous tenses on page 26 to correct these sentences. stands
1 Smithson's magnificent headquarters building is standing in Bloor Street in Toronto, Canada.
2 The head of Smithson, Carla Ferenzi, is wanting to make Smithson a world-class company.
3 When Carla is arriving at the office each morning, she is checking her schedule for the day with her personal assistant.
4 Carla Ferenzi travels in Asia at the moment. She visits important new markets there as she is needing to know more about them.
5 Carla is-knowing a lot of important businesspeople in Asia.
6 Smithson usually recruits about 100 graduates every year, but this year it recruits 150.
7 Smithson expands fast: sales increased by 30 percent last year and the same figure is forecast for this year.
Complete this article with the correct alternatives.
I am sorry to say the company has not performed well this year... 1 was €35 million, a decrease of 12 percent on last year, and .... …..2 fell by 15 percent to
€1.4 million.
We are in a highly competitive industry. Our...….3 share has decreased from 21 percent to 17 percent. The company's share ... ………4 has fallen and is now at an all-time low of 43 cents. Falling production and weak demand have had a negative effect on our plans, so we are now unable to ………..5 the new projects that we announced earlier.
In these difficult conditions, our employees remain our most valuable ……….6, and I would like to thank them for their efforts in the last year. I ask the ………….7 to be prepared for some difficult decisions in the year ahead.
1 a) Overturn b) Turnround c)Turnover 2 a) benefits b) profits c) payments
3 a) market b) sales c) product
4 a) charge b) fee c) price
5 a) cash b) finance c) money 6 a) assembly b) assignment c) asset 7 a) workforce b) manpower c) payroll
UNIT 4