Retail & Distribution Management

1. Retail & Distribution Management Designing the Sales Process

2. Themes of this session • What is design and design management? • Innovative challenges of Sales Management • Identifying customer needs and market opportunities • Marketing and Branding strategies Or more

3. Why design ? Customers: Ask: Why should I buy from you again and again? Sales Managers Can they go and provide this “reason-why”. Can they go individually and communicate ? Scales warrant customization / processes. And continually challenge the processes followed

4. Sales Management is our Business Aim People should buy from me MORE and MORE and AGAIN and AGAIN How to do this? We have to find a method of doing it ? In other words…. We have to design it for success

5. Who will design ? • Changing growth paradigms – leading to “Cost leadership” Challenge How do you accomplish the new growth-rates ? Who can achieve this ? Leaders….. Lateral leadership, Leaderless Leadership • Does being a sales manager make one a leader • Sales Managers are administrators –facilitators, • Leaders are inspirers, motivators “Leaders lead leaders not followers”

6. Change in Sales Managers Future sales managers will be known…. • less for what they say and more for what they deliver • less by their title and position and more by their enterprise and competence • less by what they control and more by what they shape • less by the goals they set and more by the mindsets they build

7. “Stripped to the bone, all the useful management principles I know are quite simple and easy to understand.” -Barrie Richardson The tragedy is, today, even common sense needs to be taught -strategically!

8. Salient features of the new economyin the context of need for Design: •Consumer is at the centre of any business activity •More aware and demanding consumers •Change from mass production to mass customization •Shorter product life cycles International exposure in the privacy of one’s room –creating Global aspirations, but local utilizations

9. Transition from Information economy (collection of facts) to Knowledge economy (processed information or filtered and networked information) to Experience Economy (The knowledge to appropriately apply the knowledge) to Delight Economy ? to Wisdom Economy ? C R E A T I V E conomy

10. From Selling what can be made, what I have To Making what sells, what is wanted From Desktop to Laptop to Palmtop to wrist wound From Mega technology to Nanotechnology From Massive to miniaturized

11. Products are becoming less and less tangible… From bundle of attributes / benefits to Bundle of Images/ Branding (names and associations) to Bundle of Sensory experiences to Bundle of comfort to Bundle of delight Products are becoming secondary Experience and Delight primary

12. Change from USP –Unique Selling Proposition To UBP-Unique Benefits Proposition To UBIP-Unique Brand/ Image Proposition to ESP –Emotional Surplus Proposition To UEP –Unique Experience Proposition to UDP –Unique Delight Proposition

13. Let’s look at a proposition Would you buy a mango for Rs. 250/-a piece? Yangpo for Rs. 500/-a piece See, even when the product is hypothetical Consumers have an idea of the value they put to this (yangpo) kind of a product

14. Change from No Customer Orientation To CRM –Customer Relationship Management To CEM –Customer Experience Management To CDM-Customer Delight Management

15. Change from Hardware age to Software age to Human-ware age From nuts and Bolts to bits and bytes to bytes and neurons Consumers no longer seek value in their purchases by matching quality and price along with symbolic, emotive and status qualities of the product but also the experience and delight value or wow factor of the product.

16. Management/Marketing can sense or convey the experience required but cannot deliver the experience Advertising can create an awareness about that experience but it cannot create that experience for the customer Production can make a product function but can’t make it give the desired experience Design can understand the user needs and provide the desired experience but can’t make it to the market That’s where design management comes in It is not about using tools and techniques, but about creating contextually most relevant tools and techniques

17. What is Design ? • Art is internally referenced by the artist • Design is externally referenced to the customer. • Design is a commercial process -informed and influenced by artistic approach.

18. What is Design ? • Every organization must design its production system. • Every restaurant designs the food items on the menu. • An automobile manufacturer designs the cars it produces. • A management consulting designs the various types of services it will offer

19. What is Design ? Once product and services have been designed, you turn to other considerations like process reengineering, facilities layout, production technology, facilities location and capacity planning. The way a product or service is designed affects it appeal for customers.

20. What is Design ? Consider Automobiles: • Toyota shifted from DFMA (Design for Manufacturability and assembly) to simplicity. • Cutting the number of parts in Corolla by 25 % and making engine lighter (10 % more fuel efficient) – features that appeal to customers and Toyota. • Consider transition from Ambassador to Maruti 800

21. What is Design ? Design has to be primarily a problem finding activity rather than just a problem solving one. • Diagnosis is what is more important. • Accuracy and the efficacy of the medicine depends on the thoroughness and exactness of the diagnosis • Often cure follows diagnosis.

22. Problem-solving approach Helps achieve a more holistic and systemic understanding of the problem as to be able to view it from all the possible perspectives and hence solve it better….

23. Designing in management context Designing can be defined as a process of creative and innovative, holistic, synergetic and strategic integration and putting together of the various relevant available sensory stimuli in optimal proportions and coherence to provide the intended and desired sensation of delight.

24. Designing in management context Designing is about encoding the message in such a way that it is decoded as intended. • Science – Cause & Effect. • Statistics – Epidemiological • Management – Attaining goals effectively and efficiently. • Design – It is about synthesis and systems

25. Designing in its context Designing is about expressing for others. Hence it is important to understand how these others perceive so that designers can develop it for these others.

26. Designing in its context Designing is about people. People are driven by neck-tops (brains)

27. Binary plant…Desktop PC

28. Wheelchair

29. School Pack

30. Fold Out Child Seat

31. New Age - Taxi

32. Food Preparation ToolTwo Meal Pack

33. Squeezer

34. Wood TV

35. Only one company can be the best at design, all the others must compete on price -Coolum Lowe • The significant problems we face cannot be solved at the same • Level of thinking we were at when we created them • Albert Einstein • Consider Solar energy • Fuel chips • Gas supply in houses

36. Design & Business in Context When • Everything becomes a commodity (price) • Success becomes ordinary • Design is the engine to improve: –Economic success (profit/sales) –Social success (quality of life) –Environmental success (ecology of life) = Triple Bottom Line

37. How should we think ? Management thinking today must be “whole brain”–the “left brain/right brain” divide is yesterday: you need rational + emotional

38. Rational Efficiencyor Emotional Effectiveness? • B School is about analysis • D School is about synthesis • Ultimately design is the “edge”since it connects products and services with people

39. Summary • Design should be part of a sales manager’s toolkit • Design is NOT art • Design is a commercial process that impacts on customer demand, production processes and cost structures • Design determines rise of brands and branding • Design is doing things differently. Are our Business Schools focused on the 20thCentury