SECTION-D (Marketing Director)
It has been a good experience working as a Marketing Director in YINGYING (boiler manufacturing company). It took one year to setup the company and from 5th quarter onwards we started selling our batches. As a marketing manager it was my responsibility to get the appropriate market research and contribute in big decisions like pricing, advertising cost R&D and many more which will be discussed later.
The aim of the company was to capture as much market as possible to sell all batches and to minimize inventory cost. Throughout first year of sale marketing performance played a vital part in promoting the product and making up to 100% successful sales, at the start we sold 90% of batches and by the end of 8th quarter it reaches to 100%, this is mainly due the proper spending on advertisement, R&D and market search. At the end of every quarter I used to analyse the sale summary to request market research, for example in 7th quarter I requested profile and demand of those customers which were not catered in 6th quarter in order to get to the unseen customers. In the first year, company has 4 customers which used to buy in bulk quantity, therefore I suggested my MD not to overlook these customers and allocate 2 sales men for them, the remaining 2 sales man were for other customers. All over I managed to get the sufficient market research by spending minimum amount so that it won't increase the cost of batch.
While discussing initial selling price I recommended to allot average price in order to analyse market behaviour as it was first selling quarter. Therefore £4000 was decided as an initial price and we managed to sold 23 batches out of 25, this is mainly due to the least notational selling price (NSP) among the competitors which attracted customers to buy better boilers at fewer prices.
In the sixth quarter market research showed declining demand, therefore I pressurized my MD to decrease price of batch by £100 until high demand observed. I was a little scared to make this decision as it was only mine, but later it turned in to rejoicing moments because YING YING made impossible a possible by selling all batches in a period of fever demand; this is mainly due to maintaining least NSP among competitors.Number and Targeting of Salesmen
My target was to cater 8 customers per quarter in order to capture more than 25% market share. Therefore I decided to recruit 4 salesmen (1 per 2 customers), every quarter I requested for customer demand for the following quarter so that I could make decision to target particular customer, obviously customer with high demand were given first preference.NOKIA
Average number of sales per quarter = 35/4 = 8.75 approx. 9 batches per quarter.
Batches sold per salesman per quarter=35/ (3*4) = 2.91 approx. 3 batches/salesman/quarterYING YING
Average number of sales per quarter = 100/4 = 25 batches per quarter.
Batches sold per salesman per quarter=100/ (4*4) = 6.25 batches/salesman/quarter
In the first year Nokia made only 58% sale. Most of their customers were cut by competitors; this was mainly due to high NSP value which does not attracted customers. They were unable to produce advanced product because of spending less on R&D. They did spend on market research and advertisement but did not planned it properly which resulted in less sales. It would have been better, if they would have planned to be a volume producer with less selling price. Secondly they should have spent handsome amount on R&D in order to make unique product which could have met customers' expectation.
Marketing is one of the powerful tool for company's success, but it depends how it is utilized either for the betterment or for destruction of company. How well this toll has been used by YING YING marketing director can be assessed by the leading cumulative profit graph of YING YING.
This is the very first time I found myself indulged in an activity like Business Game. This game gave me an experience of working in a team with foreigners. Secondly the best thing which I found is that, I was not forced to do work, the game itself was so exciting that it made me work endlessly for 14 hours. Discussing among managers was like running a firm in real world, where manager decisions plays vital role to augment or weakens the company.
All the mangers contributed in business game at their utmost. Every individual was respected and was not interrupted while working. Whatever we planned in the initial strategy documents was successfully accomplished; this success is due to contribution of each manager which was helpful throughout business game. Manager's decisions were accepted by Managing Director but before finalizing, these decisions were reassessed by managers' team.
The effectiveness of team can be assessed by comparing 10th and 11th quarters. In 10th quarter team of directors decided to increase price to £6500 inorder to make big profit, it was a bad decision because we managed to sell only 3 batches. We got upset but didn't lose heart, and made changes to our strategy. 11th quarter was a second last quarter and every company wanted to make 100% sales, therefore competition was tough but our immense work made impossible a possible and Ying Ying made 100% sale. This shows that we didn't let our company descend; instead we made it best company of the year by making highest profit in the market.
All together it was a wonderful activity and enhanced my management skills.SECTION-D (Managing Director)
Annual Statement to Shareholders
I am pleased to report that Ying Ying has enjoyed a year of solid progress, marked by substantial achievements both in front of, and behind, the scenes. At a time when many boiler companies were struggling to survive, Yours and ours company made the transition from explorer to producer and is now well on the way to becoming one of UK`s leading boiler producers.
Ying Ying produced 100 batches in 2009 financial year at an average cost of £3422 per batch. This has enabled the Company to capture 18.7% of total market and making highest profit among competitors. This was an excellent result and I am sure you will join with me in thanking the staff and management at Ying Ying for their hard work which ensured that the Company achieved these significant milestones. There has been a great deal of more glamorous work taking place to position Ying Ying for a long and profitable future. Integral to this has been the recruitment of key personnel with the skills and experience needed to build Ying Ying into a substantial boiler house. Seeking to lead the world in creating new value for the customer; we are always trying our best to further pursue the creation of advanced technologies and products that represent the uniqueness of Ying Ying.
We are constructing a new boiler plant in the United Statesand Canada to strengthen our business in North America. Our new plant will employ a high-quality and highly efficient production system featuring the most advanced technology, and will strengthen our global production network throughout the world. We are also building a new R&D centre to enhance the development of next-generation and to upgrade our R&D structure. By improving our production and R&D systems in these ways, we will continue to provide products that exceed our customers' expectations. As a result, we will grind our ability to create new value.
The Company's manufacturing strategy during the year was focussed on market-oriented production. Under this strategy, the utilisation of assets improved, production of uneconomic products stopped and price realisations geared up compared to preceding year. A short detail of annual financial performance for year 2009 of Ying Ying is on next page.
The drastic increase in return on net assets and profit margin reflect the growing scenario of Ying Ying that will hopefully reach its peak in future. The turnover of capital declined by 0.2 (ratio), it is mainly due to greater increase in net assets than sales revenue. Our higher management department is working to find this clause, and confidently will enhance turnover by next year. (Ratio)
Lastly, I am delighted to say that Ying Ying has emerged extraordinary among competitor in the field of Energy Conservation, and has been honoured with 'Energy Conservation Award' for the year 2009 by the UK boiler manufacturing association.
ANALYSIS OF BUSINESS PLAN(2nd Year of Trading)
Overall our company didn't deviate a lot from planned business plan for the year 2009. We anticipated a market share of 25% which came out as 18.7% by the end of year; this was mainly due to increase market demand that reaches to 534 batches for year 2009 and we didn't have capacity to increase our product line. On the other hand Ying Ying planned sales were successfully accomplished by the end of year, this shows that company is capable to make good sales and must increase its product line inorder to increase market share.
The average price of a batch shows an increase of £550 compare to planned, because in 10th quarter manager`s team decided to increase price by £2000 to make more profit but this strategy didn't work and resulted in a decreased sales. It took one quarter for Ying Ying to regain its position in market and by end of 11th quarter we managed to make 100% sales.
I am delighted to state that the planned annual expenditure didn't deviated from actual throughout the year; this proves the consistency of company and its employs.
Return on net asset and turnover of capital trim down by 4.2% and 0.1 ratio respectively, it shows that we had plenty of assets but didn't make enough profit from it. To make it better company should have reduced its operating expenses which would have given more profit at less net assets.