Sara Tarek Mkt 403 Project

8/10/2019 Sara Tarek Mkt 403 Project

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Modern Sciences and Arts University (MSA)

Sales Management

MKT 403

Weight Watchers

Name: Sara Tarek Kamel

ID: 100693

Presented To: Dr. Rasha El Naggar

T.A: Mr. Safwat Adel

Summer 2013


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Table of Contents

Topic Page

Background3

Target Market..... 5

Competitors....6

Positioning......6

Pricing Strategies.. .7

Forecasted Demand... 7

Number of Sales Force Required... 7

Ways of Organizing Sales Force to Sales Territories......9

Way of Recruiting Sales Force..11

Training Program...12

Sales Territory Design Method.16

References.18

Appendix...19


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Background

Weight Watchers is an international company based in the United States that offers

various products and services to assistweight loss and maintenance. Founded in 1963

byBrooklyn homemakerJean Nidetch, it now operates in about 30countries around theworld, generally under names that are local translations of Weight Watchers. The core

philosophy behind Weight Watchers programs is to use a science-driven approach to help

participants lose weight by forming helpful habits, eating smarter, getting more exercise

and providing support.

Weight Watchers mission is to help you lead a healthier lifestyle.

While there are no required foods in our Program, Weight

Watchers offers a variety of deliciously satisfying better for you

products that can be enjoyed as part of this lifestyle.

Available in supermarkets and mass merchandisers throughout the

United States, the Weight Watchers food products include cheese,

cookies, breads, chocolate candies, frozen novelties, yogurts,

snack cakes and muffins. These sensible options provide a

convenient way to save calories without sacrificing great taste and

are consistent with the Weight Watchers philosophy of enjoying a

full range of food options while managing body weight and

practicing portion control.

Weight Watchers' core approach is to assist members in losing

weight by forming helpful habits, eating smarter, getting more

exercise and providing support. In contrast to other diets that

might provide a list of foods that either must be or should never

be eaten, Weight Watchers ' primary plan has no directly

comparable requirements and no food is off limits. Participants

lose weight by creating a calorie deficit; the Points Plus system

provides a framework for creating that deficit. Accordingly,

Weight Watchers is generally compatible with other diet
http://en.wikipedia.org/wiki/Weight_losshttp://en.wikipedia.org/wiki/Brooklynhttp://en.wikipedia.org/wiki/Jean_Nidetchhttp://en.wikipedia.org/wiki/Countrieshttp://en.wikipedia.org/wiki/Countrieshttp://en.wikipedia.org/wiki/Jean_Nidetchhttp://en.wikipedia.org/wiki/Brooklynhttp://en.wikipedia.org/wiki/Weight_loss


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approaches and/or food intake restrictions (e.g., thePaleolithic diet andSouth Beach

diet), provided participants use the Weight Watchers framework to measure and limit the

quantity of food consumed while using the other diet plan to dictate the range of

acceptable food choices.

The newest plan has adjusted the "cost" of items while retaining

the fundamental "counting, budgeting, and planning approach" that has been the hallmark

of Weight Watchers plans since the introduction of points-based counting systems.

There are two primary ways individuals can work with Weight Watchers: via in-person

meetings and an online-only program. Both programs use the same basic materials and

computations. For in-person meetings, Weight Watchers encourages members to select a

goal weight that results in abody mass index generally accepted as healthy (18 to 24.9),

although a member may also establish a goal weight outside of that range after providing

a doctor's note to that effect. In order to join Weight Watchers in the United States, one

must weigh at least 5 pounds (2.3 kg) more than the minimum weight for his or her

height.

Once a member reaches his or her goal weight, he or she starts a maintenance period. For

the following six weeks, the member gradually adjusts his or her food intake until the

member no longer loses or gains weight. Weight WatcherseToolsis a Web-based

service for members that includes access to support materials and tracking tools. The

service is available for an additional fee for members who pay as they go, and is included

in the fee for members who opt for the recurring "Monthly Pass" membership plan. In

some areas Weight Watchers meetings are operated by a locally franchised organization

rather than by Weight Watchers International. Additionally, a fully online program is

available via the Weight Watchers website.
http://en.wikipedia.org/wiki/Paleolithic_diethttp://en.wikipedia.org/wiki/South_Beach_diethttp://en.wikipedia.org/wiki/South_Beach_diethttp://en.wikipedia.org/wiki/Body_mass_indexhttp://en.wikipedia.org/wiki/Body_mass_indexhttp://en.wikipedia.org/wiki/South_Beach_diethttp://en.wikipedia.org/wiki/South_Beach_diethttp://en.wikipedia.org/wiki/Paleolithic_diet


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Phase One

Weight Watchers is founded in the United States that helps people lead a healthier

lifestyle. It is a good idea that can be applied in Egypt because Egyptians love to eat food

that is full of Fats which makes them obesity. It is a customer product (B2C) because ittargets 3 types of customers; First, normal customer such as university, clubs,

schoolsetc. Second, business customers such as hospitals, health clubs, restaurants

etc. Third, food stores such as supermarkets and hypermarkets. It is very beneficial and

useful to prevent diseases such as cancer, heart diseases, pressure disease, diabetesetc.

According to Preez (2007),Our health depends largely on the food we eat.

Weight Watchers Target Market

Target marketingtailors a marketing mix for one or more segments identified by market

segmentation. Target marketing contrasts with mass marketing, which offers a single

product to the entire market. Two important factors to consider when selecting a target

market segment are the attractiveness of the segment and the fit between the segment and

the firm's objectives, resources, and capabilities.

Weight watchers targets all ages from 10 and above, both genders males and females,

social class: A and B, income: 2000 and above (average wage is 800), educated people,

occupation: employees, professionals, housewives,etc. The products will be available

in supermarkets and hypermarkets in Cairo and Alex because they have big population

(approximately 12 million people). If there was a huge demand on it and people love the

idea, I will open in other geographic areas in Egypt.


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Weight Watchers Competitors

Weight watchers direct competitors in Egypt are Juhayna (for dairy products), Farm

Frites (for frozen products), and Rich Bake (for bakery products such as bread, cookies

etc) but they do not offer healthy food. But it will face tough competition among itsgeneric competitors (restaurants) which offers healthy food:

Positioning

Positioning is the development of the image of a product directly against to the

competitor products and other products produced by the company's own. The purpose is

management's attention by the recipient to a certain product and to differ that product in

favor of the company, compared with similar products.

Positioning, especially with the market segment of products, can be defined as placing

the product into the consumers reference frame of product category. It tries to obtainnew positions in the minds of consumers and to move the products into new positions.

Thus, developing superiority over competitors is intended, it is especially important in

high competitive conditions. (Karadeniz, 2009).


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All competitors position themselves as the best place that offers healthy food to

customers. But I will make product differentiation because Egyptians are price sensitive

and prefer a variety of alternatives to choose from thatswhy Weight Watchers will be

positioned for its PRICE AND FOOD VARIETY.

Pricing Strategies

All competitors are applying price skimming, which means charging a high price to

recover costs as quickly as possible. Then, when the price is no longer unique, the price is

dropped.

Phase Two

A. Forecasted Demand

The expected demand for the next three years is 2,000,000 and if the demand on the

product increases, the number of sales representatives will also increase, otherwise I

wont.

B. Number of Sales Force Required

Weight watchers wants to calculate the workload among its sales representatives, for

sales rep (a) which are universities, clubs, schoolsetc.If there are 1000 customers and

visit it 30 times per week then the total visits will be 2500. For sales rep (b) which are

hospitals, health clubs, restaurants etc. If there are 750 customers and visit it 10 times

per week then the total visits will be 1250. And for sales rep (c) which are supermarkets

and hypermarkets, if there are 1500 customers and visit it 2 times per week then the total

visits will be 1600. So when weight watchers added them all and divided it by the

number of visits, it found that it needs 5 sales representatives.


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Work load of Sales Person = Work days Weeks Call per Day

= 5 50 5 = 1250 Visits

A = 1000 + 1500 = 2500

B = 750 + 500 = 1250

C = 1500 + 100 = 1600

So, A + B + C = 2500 + 1250 + 1600 = 5350 Visits per Year

5350 / 1250 = 5

The number of sales force required to cover this demand is 5.


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C. Way of Organizing Sales Force to Sales Territories

An organization is simply an arrangement- a working structure- of activities involving a

group of people. The goal is to arrange these activities so that the people involved can act

better together than they can individually.

There are four ways of organizing sales force, through:

Geographic Specialization

Probably the most widely used system for dividing responsibility and line authority over

sales operations. In this type of structure, each salesperson is assigned a separate

geographical area, called a territory, in which to sell.

Product Specialization

The type of product sold is another frequently used basis for dividing the responsibilities

and activities within a sales department. The two most widely used structures featuring

product specialization organization are product operating and product staff organizations.

Market Specialization

Many companies divide the line authority in their sales departments on the basis of type

of customer, classed either by industry or by the channel of distribution.

Combination of Organizational Bases

The basis of specialization geography, product, market, or a combination- may vary

from company to company, but some specialization is needed to remain competitive. A

firm may combine geographical specialization with product staff specialization (through

the use of product manager) or a sales force may combine market specialization with

geographic specialization. (Spiro, Rich, & Stanton, 2008).


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Weight Watchers sales force will be organized by combining between market

specialization and geographic specialization. So that they can market their product well,

understand the needs and wants of each group, to avoid conflicts and one customer not to

be called by many sales representatives because this will affects the sales representatives

performance negatively.

Group A = University, clubs, schoolsetc.

Group B = Hospitals, health clubs, restaurants etc.

Group C = Supermarkets and hypermarkets.

CEO

SALES

MANAGER

AND

DIRECTOR

SALES

MANAGER

AND SALES

TEAM FOR

GROUP A

CAIRO ALEX

SALES

MANAGER

AND SALES

TEAM FOR

GROUP B

CAIRO ALEX

SALES

MANAGER

AND SALES

TEAM FOR

GROUP C

CAIRO ALEX


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D. Way of Recruiting Sales Force

Effective recruitment and selection of salespeople is one of the most crucial tasks of sales

management. It entails finding people who match the type of sales position required by a

firm. Recruitment and selection practices would differ greatly between order-taking and

order-getting sales positions, given the differences in the demands of these two jobs.

Therefore, recruitment and selection begin with a carefully crafted job analysis.

A sales manager must organize the sales force so that all the necessary tasks are done

well. A large organization might have different salespeople specializing by different

selling tasks and by the target markets they serve. Sales managers often divide sales force

responsibilities based on the type of customer involved

It is important to hire good, well-qualified salespeople. But the selection in salespeople is

a hit-or-miss affair-done without serious thought about exactly what kind of person the

firm needs.

A job analysis is a written description of what a salesperson is expected to do, and

therefore it differs among firms. This analysis identifies eight major job factors and

describes important activities associated with each. Note particularly the frequent

mention of customer service functions, relationship building, and the specific reference to

personal integrity and selling ethics. (Meghisan, n.d.).

Weight Watchers will recruit 5 sales representatives; one of them will be experienced

representative and the others will be recent graduates (new recruits) by getting them from

the job fairs in universities. It will hire only one experienced employee because of the

cost by getting him/her from its direct competitors. It will use experienced employees

because they know how to communicate with customers, know their needs and wants and

ways of satisfying them. And also it will use recent graduates because they have

creativity. Both can work together to find out creative ways to convince people /

customers to buy weight watchers products because its useful and beneficial for them and

also it is an easy way to lose weight.


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E. Training Programs

Training as an organizational intervention may be defined as a well thought of set of

activities aimed to facilitate learning of knowledge, attitude, and skills among its people

in the organization to improve their current job performance and contribute to the

achievement of organizational goals. It is indispensable and becomes strategic if it takes

into account long-term organizational goals and objectives such as development of new

and better products, expanding to global market etc. (Edralin, 2004).

The importance of training are the following; it increases organizational commitment,

develops the cognitive, physical and spiritual dimensions of the employee, improves job

performance, contributes to flexibility to adapt to changing internal and external factors,

develops interpersonal skills, and heightens employee morale. (Edralin, 2004).

A salesperson needs to be taught-about the company and its products, and about giving

effective sales presentations. But this isn't always done. Many salespeople fail-or do a

poor job-because they haven't had good training. Firms often hire new salespeople and

immediately send them out on the road-or the retail selling floor-with no grounding in the

basic selling steps and no information about the product or the customer.

It's up to sales and marketing management to be sure that the salespeople know what

they're supposed to do-and how to do it. A job description is helpful in telling salespeople

what they are expected to do.

The kind of initial sales training should be modified based on the experience and skills of

the group involved. But the company's sales training program should cover at least the

following areas: (1) company policies and practices, (2) product information, and (3)

professional selling skills. (Meghisan, n.d.).


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Recent graduates (new recruits) should take training

in order to know how to communicate with

customers (communication skills), companys

product and services, time management etc., but

experienced employee should take only training

about companys product and services and

companys policies and practices.

Sales Training Program

1. Training Assessments

In the training assessment phase, sales executives must ask themselves four questions:

What are the training program objectives? who should be trained? what are the training

needs of the individual rep? and how much training is needed.

Both new recruits and experienced reps should be trained. Inexperienced recruits need to

learn not only about their companies and the products they are selling but also about

basic selling techniques. It requires from 2-6 months.

Experienced reps, as things continuously change, new products are introduced markets

shift and buyers come and go, these changes require retraining the sales force has to

handle the new developments. It requires from 2-3 weeks.

The objective is to increase sales productivity; this can be done by increasing sales per

salesperson or by lowering costs. Training is frequently used to accomplish greater sales

per salesperson and sometimes used to lower costs. (Spiro, Rich, & Stanton, 2008).


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2. Program Design

In the program design phase, the following questions must be answered: Who should do

the training? when and where should the training take place? what should the content of

the training be? and what teaching method should be used?

Weight Watchers will depend mainly on outside specialist in nutrition as he/she has

greater specialization and expertise, but on the other hand it requires additional expenses

and program content may not be specific to the companys needs.It is important to have

a specialist in nutrition especially for hospitals and health clubs.

The training should be taking immediately because no rep should be placed in the field

until he or she is fully trained and cannot risk exposing customers to poorly trained reps.

It is going to be a Centralized Training as it involves personnel dedicated to and highly

skilled in training , allows interaction with home office, and reps focus on training.

However, it is more expensive, limited amount of time, and reps kept away from home

and family.

The content of the training will be both standardized form suits (inexperienced reps

training for new products and policies) and customized curriculum (is prepared to

significant portion of experienced sales reps after specific need assessment).

The first teaching method that Weight Watchers will use is lectures because selling

techniques are best taught by participation methods, but a limited number of short

lectures introducing employees to the underlying problems and principles can be

extremely helpful in the most sales training programs. Then, demonstrations because it

can be used to great advantage in teaching both product knowledge and selling

techniques. It shows employees how to handle innumerable selling situations that are

difficult to describe. (Spiro, Rich, & Stanton, 2008).


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3. Reinforcement

Most salespeople wont change their behaviors as a result of training unless there is some

ongoing reinforcement. The most frequently used method is for the sales manager to

serve as a coach, reinforcing training efforts during actual calls. (Spiro, Rich, & Stanton,

2008).

Weight Watchers will reinforce its sales rep by giving compensation to the ones who

work and deduct the salary for the ones who does not work.

4. Training Evaluation

During the training evaluation phase, sales executives must assess the effectiveness of

their training programs. Evaluation is necessary to determine the success of failure of the

training. The outcomes must be measured against the objectives. There are four

categories of outcomes: Reactions, Learning, Behavior, Results. (Spiro, Rich, & Stanton,

2008).


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F. Sales Territory Design Method

A Sales territory comprises a number of present and potential customers, located within a

given geographical area and assigned to a salesperson, branch, or intermediary (retailer or

wholesaling intermediary). (Spiro, Rich, & Stanton, 2008).

The benefits of sales territory design are the following; it enhances customer coverage,

reduces travel time and selling costs, provides more equitable rewards, aids evaluation of

sales force, increases sales for the sales organization, and increases morale. (Spiro, Rich,

& Stanton, 2008).

There are two types of sales territory which are Build-Up and Break-Down. Build-up

method is used to equalize the workload among sales reps and break-down is used to

equalize the sales potentials.

Build-up Method of Territorial Design

First, desirable call patterns: call frequency per account per year (management must

determine how many times per year an account should be visited). Second, total calls

needed in each control group (by multiplying the number of each type of account in the

control unite by the number of the call that type of account requires. We can determine

the total numbers of call needed in each control unit). Third, workload capacity: Total

calls possible per rep per year = number of daily calls x days selling (the number of calls

that rep can effectively make in one day depend on several factors such as the average

length of time required for a call and the amount of travel time between customers).

Fourth, tentatively set territorial boundary lines (combining control units until the yearly

number of total calls needed EQUAL total calls a sales person can make). And finally,

modify territories as needed (the boundaries line of a given territory may need to be

adjusted due to special conditions such as competition). (Spiro, Rich, & Stanton, 2008).


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Breakdown Method of Territorial Design

It is often used by firms that want exclusive distribution or that sell some type of

industrial products. First, company sales potential (determine what sales volume the

company can expect in its entire market). Second, sales potential in each control unit (to

combine the sales potential in each control unit, a market index is multiplied by the total

sales potential). Third, sales volume expected from each sales person (estimate how much

each sales rep must sell to have a profitable business). Fourth, tentatively set territorial

boundary lines (divide the entire market so that each sales rep has about the same

potential) and finally, modify territories as needed (the boundaries line of a given

territory may need to be adjusted due to special conditions such as competition). (Spiro,

Rich, & Stanton, 2008).

Weight Watchers is going to use build-up method to equalize the workload among its

sales representatives to make an intensive distribution.


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References

Preez, H. (2007). Prevention of Disease through Food. Journal of Natural Medicine, 34-

36.

Karadeniz, M. (2009). Product Positioning Strategy in Marketing Management. Journal

of Naval Science and Engineering, 5 (2), 90-110.

Book:Spiro, R. L., Rich, G. A., & Stanton, W. J. (2008). Management of a Sales Force

(Twelfth Edition). New York: McGraw-Hill Companies.

Meghisan, F. (n.d.). Sales Force Recruitment. pp. 1396-1401.


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Apricot & Almond Muffin

Ingredients

100g (3oz) self raising flour

1 tsp baking powder

2 eggs

10g (1/3oz) artificial sweetener

2 tsp almond essence

20g (oz)Weight Watchers Half Fat Butter,melted

20g (oz) ground almonds8 tspWeight Watchers Apricot Jam

10g flaked almonds

Method

Preheat the oven to gas mark 7/220C/fan 200C.

Meanwhile, place 4 muffin cases in a deep whole muffin tin.

Sift the self raising flour into a large mixing bowl with the baking powder and set aside.

Beat the eggs with the sweetener and almond essence until combined.

Add theWeight Watchers Half Fat Butter and beat again.

Add the sifted flour to the wet ingredients and stir in the ground almonds to mix.Spoon 1 heaped tbsp of the mix into each case and top each with 2 tspWeight Watchers

Apricot Jam.

Cover with the remaining muffin mix.

Sprinkle the flaked almonds over the top of the muffins, and then bake for 10-15 minutes

until risen.These are best eaten on the day they're made.

10 Minutes to Prepare

15 Minutes to Cook

Serves 4
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