SALES

Increase in demand increases Sales

According to the AMA definition of sales, 

“Sales refers to the number of activities designed to promote customer purchase of a product or service. They can be done in person or over the phone, through e-mail or other communication media. The process generally includes stages such as assessing customer needs, presenting product features and benefits to address those needs and negotiation on price, delivery and other elements.”

Marketing and promotions of a brand has the final objective of converting to sales. Sales is one of the essential parts of any business primarily because it results in revenue for the company. These profits are then used in different ways for the welfare of the organization.

In case of Dove deep pure face wash sales are dependent on the demand created in the market through marketing activities and promotions. 

Here, the concept of Demand Creators can be applied. Demand creators increase the demand of the product by keep a track of the number of people talking about the product. In fact they increase the number of such people.

An increase in sales can be achieved through..

• catering to the need
• ad campaigns
• right brand positioning
• marketing as per the changing needs.

The sales of FMCG goods particularly face wash category has attained a stagnant point for quite some time. HUL the parent company for Dove witnessed sales of 3% in the personal skin care segment whereas the projected sales for the last quarter were 5% in March 2014. Thus, we can say that the sales figures were not similar to what was project for the year.

In the personal care segment, the skin care section has seen an increase in demand to 8%. The company traded at 32.2 times in its 12 month forward earnings compared to ITC who traded at 27.7 times and Godrej which traded at 27.7 times according to Thomson Reuters Starmine Smart Estimate.

Out of the analysts hired by the brand to cover stock, 19 had the ‘sell’ rating which only 6 out of them as ‘strong sell’. 13 held ‘recommendations along with ‘buy’ and ‘strong buy’.

Share value of the company increased  1.8% so far this year, compared to a 4 percent increase in the BSE FMCG index.