TATA TIMKEN COMPANY LTD

About the company

US based company

Manufacturer of tapered roller bearings Started its operations in India in 1992 in collaboration with TISCO

Second largest manufacturer of tapered roller bearings in India.

Capacity installed for production 3 million units(standard bearings and bearings for trucks, utility vehicles and railways)

Key events in the case

The US based company Timken purchased Tata's 40% holding in the joint venture and made It 80% The company accumulated losses of Rs 50 crore by the end of 1995 Company Expanded by Rs 32 crore in March 1998 Timken group acquisition include MPB Group now Timken aerospace and super precision bearings

Change in the scenario

Tata group decides to withdraw from the joint venture. Company to be renamed Timken India ltd.

Timkens plans to expand after the takeover Greater control encourages them to bring in new technology. Strategy is to look at the past sales for the future

Sales Sequence Charts (with SPSS)

Initial Analysis
Descriptive Statistics
N
2000
2001 2002 2003 Valid N (listwise)

Minimum Maximum
27
34 39 38

Mean
53.58
60.17 67.33 73.25

Std. Deviation
19.360
15.081 18.980 20.078

12
12 12 12 12

87
78 98 98

79

Initial Analysis (Contd.)

Communalities Initial 2000 2001 1.000 1.000 Extraction .955 .967

2002
2003

1.000
1.000

.966
.976

Extraction Method: Principal Component Analysis.

Initial Analysis (Contd.)

Total Variance Explained Component Total Initial Eigenvalues % of Variance Cumulative % Extraction Sums of Squared Loadings Total % of Variance Cumulative %

1 2

3.864 .068

96.597 1.710

96.597 98.307

3.864

96.597

96.597

.046

1.162

99.468

.021

.532

100.000

Extraction Method: Principal Component Analysis.

Initial Analysis (Contd.)

Component Matrixa

Component
1

2000
2001 2002 2003

.977
.983 .983 .988

Extraction Method: Principal Component Analysis. a. 1 components extracted.

The forecasting Process

Develop forecasting procedure Determine independent and dependent variables

Forecast objectives

Select forecast analysis method

Evaluate performance results against the forecasts

Comprehensive total forecast procedure Present all the assumptions about data Make and finalize the forecast

Collect , collate, gather and analyze the data

Designing Sales Territories

1. Selecting a basic geographical control unit

2. Determining the sales potential present in each area

3. Combining control units into tentative territories

4. Adjusting for differences in coverage difficulty

Q1. Factors that Sales Manager takes into account before deciding on a Sales Territory

Coverage of the market Sales Potential Improving sales force morale

Matching seller effort to meet customer needs

Sales volume approximation

The Approach
1) Market build up approach 2) Work load approach

Market build up approach

Method of estimating the revenue potential of an industrial market by identifying the number of potential buyers in the market and the purchase requirements of each

Q2.Geographical Control Unit definition and its importance

Geographical Control Unit is the unit of geography that is combined to form a sales territory

COUNTRIES

CITIES

STATE OF PROVINCES
COUNTIES METROPOLITAN AREA

ZIP CODES
CENSUS TRACTS CUSTOMERS

Reasons for forming GCUs

Sales force effectiveness

Major Trading Areas

Product Life cycle change

Product line change

Customer Relocations

Q3. Workload approach

An approach in setting sales force size in which the company groups into different size classes and then determines how many salespeople are needed to call on them the desired number of times

No. of salesmen

Number of Customers X Call Frequency Average weekly call rate X Number of working weeks per year

Q4. Features of a good sales territory computer program

Benefit: Customers will be contacted and serviced by one salesperson, which prevents duplication of effort.
Product/Service profiling Easy to use Compatibility Flexible and adaptive Scope of customization Easy to share information Mapping staff expertise Customer/prospect profiling Competitor Territory

Q5. Importance of maps and spreadsheets

Territory alignment and optimization : Todays competitive marketplace, companies cannot afford to have inefficiently designed territories Efficient territory design: 1.Over 40% of all field sales reps have either too much work or too little work. 2.The average field sales rep spends approximately 20% of their time traveling. More efficient territory design results in less travel time which translates into more selling time

Managing most valuable asset: Focus on most critical area within different territories can boost sales by 2-7 %
Sales advantage: 1.Unique sales advantage over the competitors by harnessing ability to find and react to problems quickly. 2. Conduct "what if" analysis on any data or geography, realign territories to address short and long term goals ,balance workload and more

THANK YOU