SALES REPORT ON

Submitted in partial fulfilment of the requirement of the

POST GRADUATE PROGRAMME IN MANAGEMENT

Submitted by,

AMIT PAUL (PA9006)

SHANTA SHREE KAR (PA9051)

Under the Guidance of

PROF. Gopal Ratnam

RAMAIAH INSTITUTE OF MANAGEMENT STUDIES

193, NEW BEL ROAD,

M. S. RAMAIAH NAGAR,

BANAGLORE – 560054

2009-2011

1

CONTENTS

Chapter No.

CONTENTS PAGE No.

  1. Executive Summary 3

2.

Profile Of The Company

4-12

a)     Historical Backgroundb)    Corporate Overview

c)     B2B or B2c

d) Vision & Mission statement

e) Products

f) Services

3.

HR background  

13-22A)     Training & Development

B)    Compensation Plans

C)     Recruitment Process

D)    HR Policies

4.

Sales Force Background

23-27 A) Sales Team Division B) Sales Contest C) Sales Structure D) Sales Person Interview

5.

Conclusion 28-29

2

EXECUTIVE SUMMARY

The objective of this report is to bring forward the effort of the sales people at

Cease Fire. Cease Fire is a company that deals with the manufacturing, marketing,

distributing and selling of Anti-fire or Fire Resistant tools and equipments. Cease

Fire is majorly a business to client (B2C) company that directly supplies its

products to different client including major and minor accounts while it also has a

5% business to business (B2B) dealing in case of government agencies.. Their

product range covers Home Product Covers, Escape Product Covers and Security

Product Covers.

Today Cease Fire generates atleast one client in fifteen minutes which makes their

job even more responsible. With the huge growth of sales, comes the responsibility

of customer satisfaction. Cease Fire has a dedicated toll free helpline which has

24/7 reach ability and a after service team that provides onsite periodical servicing

of their fire fighting equipments to ensure 100% safety at times of crisis.

Given the criticality of their business, the company has a strong training and

development programme for its sales force. Their training included three phases

Induction and Orientation, Ekalavya (advance selling workshop), New product

training .

Though the company does not entertain any sales contest, it has numerous

attractive incentive schemes to boost the morale of its sales force.

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PROFILE OF THE COMPANY

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COMPANY PROFILE: OVERVIEW: CEASE FIRE

Cease Fire Safety Systems is an Indian Company Specialised in the field of Fire

Protection with an experience of over 35 years. Cease Fire commenced business in

1986. The principal business was manufacturing a proprietary dual agent,

automatic fire suppression system. Its unique, proven technology has been used

worldwide. Over 25,000 automatic units and one million handheld portables have

been sold since 1986. They have been growing the business and expanding the

product line in the current location in Vancouver WA since 2002.The Federal

Aviation Administration (FAA), O'Hare International Airport, Honeywell, LTV

Steel, Navistar, US National Park Service, Chicago Transit Authority, London

Underground, and Intel have depended on Cease Fire suppression systems for fire

protection of valuable property and equipment.

They operate on a National level and are backed with an efficient Sales & Service

network spread out on a regional basis throughout the country. Their aim,

objective and passion is Fire Safety. They focus on continuous improvement in the

processes and systems to exceed customer satisfaction and expectation ensuring

the best in all aspects. The company's work force is composed of technical and

business administration graduated officers, and of a qualified group of employees

and workers trained in the fire protection business: Furthermore, they are well

updated of current National and International Fire fighting Standards and advices

from ISO, NFPA, UL, HSE, BIS, TAC, MMD etc.

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HISTORY:

When Ceasefire first launched its range of domestic fire extinguishers a few

decades ago, no one in India had heard of fire protection, much less felt the need

for it. The Ceasefire extinguisher was sleek, powerful and smart. But most

importantly, it was easy to use. A high visibility, high impact mass media

campaign supported the product launch. A personalized, highly persuasive and

informative form of direct selling backed up distribution.

The result: A thriving market where none existed before. In two years, they were

selling a robust one million units plus. And the nation's leading business

publication had ranked Ceasefire one of the top 10 marketing successes of the

decade, alongside stalwarts like Levers and Colgate. A Ceasefire Extinguisher isn't

just assembled. It's engineered for perfection. Because an extinguisher is never

tested until it is used in a life-and-death fire situation. And then, there's zero room

for error. It must perform at full potential, to save a life.

Ceasefire's manufacturing processes and quality checks are far and away the

most stringent in the country, and on par with the highest standards worldwide.

Virtually every Ceasefire extinguisher comes with ISO 9001 and CE

certification, and conforms to ISI standards. With a clear leadership position in

every possible area of fire protection, Ceasefire is moving aggressively into an

enhanced product range and other areas of safety. The launch of new fire fighting

products such as the Watermist Extinguisher, Monnex, FE-36, larger capacities of

CO2 and Dry Power and many more will ensures that Ceasefire remains the

number one in the country's fire protection market.

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In addition, the home safety products are already making their presence felt

in the market. The Gas Leak Detector, Smoke Detector and 650gm/1kg Fire

Extinguishers that make up this range give the first mover's advantage over

competitors.

To address the growing need for comprehensive Security Systems for

both homes and institutions large and small, Ceasefire's Security Division was

born. Today, the Division's offering spans the gamut of security – from a basic

range to cutting-edge, GSM technology driven systems that border on space age.

They have entered into a tie-up with world leader, Hochiki and Visonic , to

bring to India a range of state-of-the-art smoke detection systems. With Hochiki's

global presence and technological finesse, they are sure that they will be able to

give the Indian market products they have never seen before.

1989: launched home extinguisher

1993: entry into the multicore industrial market

1995: extends to provide stand alone detectors

1999: CO2 , water and foam extinguisher

2006: MAP 90 and clean agent (gas based) together with wireless smoke

detection system with a tie up of an isreilian co,

2007: entered security systems market with wireless security systems and video

door phones

2010: water mist launched

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CORPORATE OVERVIEW

The ground for Ceasefire's successful evolution has been steadily laid for the past

few years. By building India's most trusted fire safety brand, by capturing the multi

crore industrial market, by making substantial investments in both R&D and

technology, and manpower.

Over the past few years, their sales and marketing network has steadily grown,

making strong inroads into over 300 cities and towns across the nation. Today,

their manpower is approximately 1500 strong, a team of committed, loyal people.

The product portfolio has expanded beyond measure. From fire safety to security

systems, they have captured and led all market segments in the country.

The market has changed. So has the way they function in it. Ceasefire on its way to

creating 4 new SKUs - the Direct Division, Corporate/Institutional Division,

Residential Division and Security Division - each with its own CEO, each

responsible for its sustenance and growth.

B2B OR B2C COMPANY?

Being a direct selling company they deal directly with their customers

making it a B2C company. However they also provide products to

government institutions through some dealers which make the company

a B2B to a little extent also. Such dealers act as co-operative stores for

the government Institutions.

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VISION AND MISSION STATEMENT:

Vision:

enhancing profitability by exploring new markets , provide strategic value to

customers, high quality safety and security solutions and services. Create a

company that can attract and retain smart and talented employee.

Mission:

Providing safety, security and training solutions to Commercial,

Industrial, Domestic, PSU units for the protection of life and property and the

enhancement of the national economy.

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PRODUCTS:

1. Wet & Dry Riser Fire Hydrant Systems.

2. Sprinkler and Spray Systems.

3. Smoke, Heat & Flame Detection Systems.

4. Gas Based Fire Suppression Systems.

5. Dry Powder & FOAM based Flooding Systems.

6. Manual Fire Alarm with Public Addressable (P/A) Systems.

7. Manufacturers of 'ISI' Marked Portable & Trolley Mounted Fire

Extinguishers.

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The company deals basically with fire extinguishers, Smoke detectors, Escape

products , Security products and as well as home products

Home products covers :- 500gms and 1 kg specially designed gas

based and powder based cylinders. Along with smoke detectors and gas leak

detectors.

Escape products covers :- Fire blankets, Masks, Escape signages.

Security products covers :- security systems, video door phones, cctv

systems and security pro systems.

Fire Extinguishers are of the following types

Gas type- where hydro fluro carbon is used also known as fe236 and fe123

Powder based which is also known as Mono Ammonium Phosphate

Apart from this, the company also provides back up cylinders like

a) Water based

b) Foam based

c) Co2

d) Water mist (newly launched)

e) Ceiling mounted

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PRIORITY SERVICES:

Every 15 minutes Ceasefire creates one new customer.

With such rapid growth exceptional service delivery becomes critical

Their Sales and Service Network reaches out to 300 cities and towns across

India through branches that are 100% computerized

Ceasefire has also set up a dedicated toll free Helpline which basically

carters the need for the customers, 7 days a week and 365 days in a year

Every 15 minutes Ceasefire creates one new customer.

h rapid growth exceptional service delivery becomes critical

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HR BACKGROUND

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TRAINING AND DEVELOPMENT PROGRAM FOR SALES

FORCE:

Basically there are three major trainings conducted by Ceasefire for its sales

employee which are mentioned below-

i) Induction and Orientation

ii) Ekalavya

iii) New product training

Induction and Orientation-

This training is basically about understanding the company, its history, vision

along with the understanding of causes, stages and classification of fire. This is

followed by understanding various components of ideal fire protection. The

training gradually moves on to the explanation of various products of the

company which ranges from fire extinguishers to smoke detectives and escape

products.

The trainees are taught regarding fire risk assessment to be carried on in a

commercial or a residential set up. This is followed by the understanding of the

sales process. The training continues for 10 days which covers both practical and

theoretical knowledge.

The trainees are faced with mock presentation, negotiation, close and order role

play. They are given a detailed description of the various reports that they have to

prepare on daily weekly, monthly and quarterly basis. The training also provides

information on employee’s rights and responsibilities.

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Eklavya (the advance selling workshop)

This training is conducted for the new front liner’s after 45 days on the field. This

training is basically for 7 days. It provides training on advance sales skills. This

training will also review on the sales person’s performance over the 45 days; will

cater to their various problems and difficulties faced in the field. Solutions will be

sought from all the participants followed by a discussion for selecting the best

solution. This training also helps the front liners to set the objective for the next

90 days.

New product training-

The company from time to time conducts training on various new products that

are being launched in the market. This training is basically for 1 day.

Training is done for the sales people:

Training is an integral part of a sales organisation and Ceasefire do conduct such

training on a regular basis. The training for the new front liners begins with the

orientation and induction programme which moves on to the Ekalavay training

programme.

This doesn’t end here as the front liners are faced with review trainings on every

Saturdays and monthly reviews at the end of every month. Such trainings not

only bring out the problems faced in the fields but also provide solution and

better understanding.

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Not only the front liners but also the managers- territory managers, senior

territory managers, branch managers, Regional managers goes under various

training programmes every month.

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COMPENSATION PLANS FOR THE SALE PEOPLE

The incentive plans are as follows-

i) First Blood incentive - Applicable for new joiners for a period of 45 days

from the date of joining. The incentive is 4% of the sales value. The incentive

will be cleared post the realisation of the payment. The incentive % on sale shall

be applied on base price after deducting the discount and before adding up the

tax.

ii) Special incentive scheme- Applicable for sales up to 50k for fresher’s

and 80 k for 6 month plus. This scheme is open for all front line sale people

irrespective of the designation. For corporate and institutional account this

scheme is not applicable. The entry in this incentive scheme is subject to payment

received as per the following condition-

“75% of the payment of the total sales of the month received as per the

agreed credit terms”

Credit terms will be as per the sanctioned credit which will be as per the credit

policy.

iii) Monthly Incentive scheme - This scheme is for all, irrespective of their

ages in the organisation. Any sales for which the payment is received after 90

days will be removed incentive computation. Monthly Incentive scheme will be

realised post realisation of all payments. Release of incentive on sales will be

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80% and balance 20% will be at the end of the year. There will be negative

incentive also so that in case of sales being lower than the sales return value than

the incentive earnings are in negative to negate the advantage taken in the month

of sales documentation. In case of any front liner becomes a manager during any

quarter his or her incentive shall be worked out as per front liner scheme for the

quarter and from the next quarter he will fall into managers category incentives.

This scheme is applicable for sales above 50k. The incentive varies from 1.5-

2.25% to 6.5-8% depending on the salary bandwidth.

iv) Incentive for saving in discount and penalty on excess discount

– The company will provide additional bonus on saving in discount percentage

which varies from 15-50% on base earning amount.

Eg.-price of 1 cylinder is RS.100 and instead of a buy back discount of 15% a

sales man gives 10% .So the employee saves Rs. 5. On which he gets 15% bonus

It’s applicable on monthly schemes 0-0.99% shall be treated as neutral zone and

shall not be any bonus/penalty in this.

v) Incentive on collection as per the agreed credit terms - This

incentive will be worked out post clearance of all outstanding every month.

Under this scheme the sale person can earn additional incentive on collection if

the same is received as per agreed terms.

vi) Laptop bag scheme - This scheme is all front liners irrespective of their

age in the organisation and their ctc. In this scheme the sales person can qualify

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only once during a year. A sales person whose age in the organisation is 0-5

months is entitled to the scheme on recording sales revenue of .50 lakhs in any of

the month in 1st quarter. And a sales person whose age in the organisation is

6months plus is entitled to the scheme on recording sales revenue of 1lakh in any

of the month. The bag will be distributed post clearance of all the outstanding of

the quarterly period.

vii) Quarterly Incentive scheme - The quarterly scheme is for April to

June, July to September, October- December, January-March applicable for

everyone irrespective of their age in the organisation. A person joining in the

middle of the quarter incentive will be calculated on the pro rata basis.

viii) Mobile Incentive scheme – Common for all front line sales people

irrespective of their age in the organisation and their ctc. Mobile talk time amount

will be reimbursed on a monthly basis. Supporting will be required for mobile

talk time reimbursement which needs to be submitted to the branch account.

ix) Monthly incentive on prospect generation client creation and

RPC- Incentive on prospect generation is subject to minimum value of each

prospect being RS. 15K. This is subject to minimum conversion of 20% of the

prospect common for all line sales people irrespective of their age in the

organisation and their CTC.

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x) Laptop scheme - Any sales person achieving the entry level bench mark

sales as per as salary package in any four consecutive month shall be entitled for

HCl laptop. A sales person can qualify for this award only once during the year.

Applicable only after realisation of entire amount during the qualification period.

The individual has to apply for self finance for the laptop the company will make

the down payment in monthly EMI for 12 months.

xi) Rising star scheme - a sale person who is the topper in bringing the

highest amount of sales among the front line sales person in each branch in every

quarter.

PROCESS FOR RECRUITING THE SALES PEOPLE:

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The business of direct selling is a highly challenging one. The hours are long and

the targets are tough. It takes a rare combination, patience and commitment to

excel. And yet for an organization like cease fire attracting, retaining and

nurturing the right kind of powerful team is the corner stone of success. To tackle

this scenario cease fire has formulated and perfected unique human resource

management technique. This methodology proprietary to cease fire, provides

precise and scientific inputs to bring in the right kind of individuals and turn them

into a ace sales man. But more importantly, it also creates fine teachers and

leaders. So skills and techniques once learnt become viral within the organization

spreading at exponential rate.

Recruitment process starts with a group discussion followed by a presentation on

a given topic. The selected candidates are to appear for a final round of interview.

On the basis of his performance he is selected for direct or corporate division.

HR POLICIES:

Cease fire defines the guidance for a flat anti hierarchical structure which results

in continuous growth from within. The entire process begins with attracting

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ambitious young individuals with the potential to grow into stars. In order to

achieve this in par from perfect market condition, ceasefire runs aggressive

campus recruitment campaigns as well as high power high impact mass media

advertising. Once new recruits are inducted in the company they can without

exception look forward to an open environment design to help them excel. An

example, ceasefire has no fixed appraisal period. So in average twelve month

span 60 percent of its analyzed requirement of managers typically comes from

internal job promotion. The fact is 80 percent of ceasefires upper management

started their career as ceasefire frontline sales people.

Ceasefire human resource management have also employed a unique and

effective incentive plan which greatly motivates the sales force.

The ceasefire academy of life investment and future training is a nerve centre of

its human resource strategy. The academies intensive training programs have

been developed through years of research and experience in the field of fire

protection and though they are varied in scope and content they are single minded

design to improve people careers prospects personal growth and financial growth.

Over all ceasefire human resource management technique ensure that well spring

of the organizations most valuable asset its people.

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SALES FORCE BACKGROUND

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SALES TEAM DIVISION :

The Sales team is divided on the basis of

A) Corporate,

B) Institutional

C) Direct team.

Corporate Division : This team deals with some specific 2000 Giant

Corporate clients.

Institutional Division: This team deals with government and semi

government organisations like BSNL, CPCL etc.

Direct Team: This team deals with all commercial establishments ranging from

Clinics, beauty parlours, showrooms, Offices, Hospitals, Schools, colleges etc.

The direct team can even approach or follow corporate clients which have

made a new entry and not approached by the corporate division and or an existing

company not Approached & followed by the corporate division.

The direct team is again divided into:

Security

Home

Detection and

Industrial division.

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The whole Industrial division under direct team is again divided into regions as in

NORTH, SOUTH, Central and WEST Division. These divisions are then divided

into various Territories. The sales person are then given a specific territory to

work on based on his or her skills.

SALES CONTEST:

There is no specific sales contest for the sales person. However the employees

contest among each other for various incentive schemes

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SALES STRUCTURE OF THE COMPANY:

Feroj- Founder.

Director- Ashutosh Mangal

1) Pavan Arora CEO (Zonal Head North West East)

2) Bala Subhramanian Vice President (Head Sales and Admin)

3) R C Sharma VP (Head of Accounts)

4) J Bhaskar- President (Zonal Head South)

a) Ramesh GM (AP)

b) T G Srinibasan (Asst. VP) takes care of Tamil Nadu, Kerala and

Bangalore

Under TGC Sagar (DGM) Chennai region.

Under Sagar- Direct And Corporate Division

Direct division

Junetha- Regional Manager

Under her Abdul Menon (Branch manager for west and central).

Under Abdul Menon Senior Territory Manager, Pinaki Karmakar ( west

branch)

Under Pinkai 5 front line sales man.

West division has another territory manager named A.C. Chandrashekar

with 2 front liners.

Central has two Territory Manager Ravi and Vignesh.

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Vignesh reports directly to Abdul Menon.

Ravi has 3 front liners reporting to him.

Vignesh has 2 reporting under him.

Apart 4m them central has 2 senior front liners reporting directly to Abdul

Menon.

INTERVIEWING THE SALES PERSON:

Name: Subha Pratim Kar

Working in industrial division in direct division.

His customer ranges 4m hospitals to schools, showrooms to departmental

stores, mall, small offices to corporate offices, beauty parlours to spa and

fitness clubs

As a new front liner probation period is for 6 months. Staring target was

40k which increases every month by 5k. After six months target will be 1

lakhs

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Conclusion

CONCLUSION

C conclusion

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Cease Fire is a company dealing with an array of anti fire and fire resistant

products, the company through its salesmen sell its products to every category of

customers ranging from big-middle-small accounts. The company has, for its

employees an array of incentive schemes to encourage them to perform better.

It was indeed a learning experience to interview the HR manager and a salesman

of Cease Fire. We understood the difficulties that a salesman faces in order to

reach his targets. Further we were acquainted with the challenges that the

organization has to overcome to portray itself as a dominant and reliable player in

its category of offerings. We also understood the pitfalls of direct selling and the

benefits attached to it.

Finally, we would like to conclude with the fact that selling is the most important

function of any business as it is their source of revenue generation. Sales, be it

B2B or B2C is indeed a tedious job and the sales force has to overcome many

hardships in order to keep up with the goal of the company.

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