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Unit 14: International Sales Management

In thinking about this business model from the consumers' viewpoint, it is essential to understand Notes
that studies show that a great deal of web shopping occurs where the intent is not to buy over the
web, but rather to decide what brand and perhaps model to purchase through regular channels.
In thinking about this business model from the investor viewpoint, we see that it subsumes
what might otherwise have to be listed separately as an Investor Relations Model: e.g. the Sun
Investor Resource site at www.sun.com/corporateoverview.invest. oi index, htm.

Example: Many sites are of this type, often because they have not yet enabled on-line
sales. For example, the extremely simple Hanse's Juice site at www.thejuiceco.com has only the
consumer in mind and for now is purely an exercise in image building. A more sophisticated
example is the R J Reynolds Tobacco Company site at www.rjrt.com. For obvious reasons, this
company is extremely interested in improving its image. Other sophisticated examples are
Mattel at http: servce.mattel.com, Procter & Gamble's site at www.pg.com.



Caselet International Marketing

harat Perfumes Ltd, a renowned company in India were manufacturing two types
of perfumes, one based on essential oils and the other alcohol based perfumes.
BPerfumes were being exported to Middle East countries. Particularly the essential
oil traditional perfumes, also known as Attars, were directed on the orthodox segment of
the society. These customers believe in strong perfumes with heavy smell. The perfumes,
which were supplied to the customer, were high priced, ranging from 40,000 to 50,000
a kilogram. Some special perfumes were also sold at a much higher price ranging up to
four lakh/kg. These perfumes were in great demand by various sections of the society.
The other type of perfumes are alcohol based and were in the form of sprays with very
good packing and were sold in most of the modern stores. The company was concentrating
on both types of perfumes. There was more competition in alcohol based western type of
perfumes from the western countries and big names English Leather, Yardley, Channel,
etc.

The company started its business by sending its own sales representatives for booking
orders for both type of perfumes. The salesmen were able to procure a few orders but
these orders were not followed up by the customers. After every few months the company
had to send its representatives for booking fresh orders. Their procedure was very
cumbersome and a lot of expenses were involved. The management then thought of
appointing local dealers in foreign countries who would book orders and send them to
the company and charge a suitable commission. Another problem was that the customers
did not retire some of the consignments and heavy damages and other expenses were also
incurred. If the goods were not retired for a long time there were chances of them being
spoiled. The company tried to negotiate this aspect with the local agents but no suitable
solution was coming forth. The company was keen to establish its business in foreign
countries and was looking for suitable selling strategy.

Questions
1. What could have been the drawback in the approach and the knowledge of the
salesman in not being successful?

2. Which method for selling would you recommend and what should be the strategy
in promoting sales?

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