Hd Bearings Sales Plan

HD BEARINGS SALES PLAN

2012

1.SALES OBJECTIVES

Objectives:

 Increase the local market share by taking up the domestic sales.

 Increase the total ordered product volume up to %20-25

 Enter pre-studied markets (including South America and Japan)

 Beat last year's sales

 Increase the profit by %15

 Destock last year's left over which occurred in second quarter

Regarding the objectives, partnership with the main supplier of bearing balls and bearing cages, Japanese company, would help achieving goals in time. Our company holds one of the top places in the markets in 7 continents except the countries Japan and Israel in which the competition is challenging.

2.EXISTING SALES PERFORMANCE

According to last year records, our company head the best sales performance of last 10 years. Below, the numbers of last year (2011) are shown:

Category Q1 Q2 Q3 Q4 Total

Total Sales $6.5M $9.1M $10.3M $8.3M $34.2M

Sales of CB2234ZZ* 2.1M 3.8M 4.1M 3.2M 13.2M

Sales of 66G42AZZ** 4.4M 5.3M 6.2M 5.1M 21.0M

Market Share %15 %18 %17 %16 %16.5

Market Share %22 %19 %20 %21 %20.5

*Car wheel bearing

**Car engine bearing

Although in three out of four quarters were successful, because of a set of unexpected orders we could not cover second quarter's planned sales which also caused a left over in stock. As above mentioned, destocking this left over one of this year's objectives.

3. CUSTOMER SEGMENTATION & ACTION PLANS

Our company HD has a number of different customer segments. Different segments require different services and plans. For instance, car manufacturers which are our main customers are in "high-demand segment". On the other hand we have some customers which are making their orders at the last minute and asking for "zero" defect. These should be taken into account and all related planning processes should be revised. We should run at least two segmentation schemas.

High-Demand Segment

This segment consists of customers that usually purchase high volumes frequently. Making contracts which would save both parties time, effort and money is important. Thus these contracts assure us of their constant order.

On-Demand Segment

These are the customers that order at the last minute and want it now. They usually do not worry about the price. A quota must be set for this kind of emergency orders in order to deliver them on time. An overnight or emergency on-demand offering at a much higher price should be set up.

4. OPPORTUNITIES AND TERRITORIES

The one and only difference between us and our competitors is that they managed to enter two markets that we are not in yet. We still managed to compete and hold the biggest share of the global market.

 The need of a trusted supplier in the domestic market is becoming prominent nowadays. Since our company had a strategic location and a quality production with high volumes, we can easily take over

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