Kimberly-Clark Australia & New Zealand Market Development and Sales

1. INTRODUCTION

Best known for its famous hygiene products namely Kleenex tissue, Huggies Nappies, Kotex, and many more, Kimberly-Clark Australia & New Zealand started importing products from the USA in 1926 and began manufacturing their products in Sydney in the 1930s. In 1991, they established sales and marketing facilities in Manukau, Auckland and a regional office in Christchurch. The corporation currently has manufacturing facilities in 40 countries and sell their product in more than 175 countries around the world.

The company has a wide product range from dispensers, paper hand towels, facial tissue, skincare & sanitisers, toilet paper, wipers, personal protective equipment for cleaning, air fresheners, bathroom accessories, to clinical wiping and surface protection. They are currently supplying and installing their products to major supermarkets nationwide, contract cleaners, commercial kitchens, healthcare facilities, laboratories, manufacturing facilities, corporate offices, hotels, and local airlines (Kimberly-Clark Australia & New Zealand, 2012).

2. NATURE AND IMPORTANCE OF PERSONAL SELLING TO THE BUSINESS

In personal selling, sellers invest time and effort in interpersonal communications with their buyers with the aim of gaining their trust and building long-lasting relationships. Trust-based relationship selling, a form of personal selling, relies in earning the trust of their customers to be able to meet their needs by making them participate in co-creating the solution to their problem. This can be done through series of conversation also known as sales dialogue, which allows the seller to understand and clarify the needs and buying situations of the customers, and give additional value to them by coming-up with tailor-fit strategies (Ingram, LaForge, Avila, Schwepker, Jr., & Williams, 2015).

Kimberly-Clark’s values are: 1) Superior Performance in creating products that best meet the needs of customers, 2) Exceeding Expectations, 3) Teamwork, and 4) Care for others, the people they work with, sell to, communities they live in, and the environment.

A study by the European Union in 2013 about Health and Safety at Work in Relation with Productivity (HESAPRO) estimated that about 2.2 million people die annually from occupational accidents and diseases. It is proven that work-related diseases are very costly not only to the companies but also to the lives of the employees, their families, and their finances.  (ILO, 2006)

In New Zealand, the Health and Safety at Work Act 2015 require companies to provide employees the highest level of protection from health and safety risks that include both physical and mental health. This protection is provided through proper trainings, equipment, programmes, and facilities (Employment New Zealand, 2019).

As a company that aims to provide solutions to safer, productive, and healthier workplace through their “leading-edge hygiene and cleaning products for the workplace”, personal selling is essential as this will not only affect the workplace productivity and health of their customers but also their customers’ customers especially whose business require everyday B2C interaction.

Through communications and collaborative planning of solutions, Kimberly-Clark and its customers can give each other mutual benefits. Personal selling will help them to identify the products they need to ensure their workplace’s health and safety and also to negotiate the scheduling of supplies delivery and flexible payment schemes.

3. METHODS OF EFFECTIVE PROSPECTING AND RELEVANT INFORMATION FOR SALES DIALOGUE PREPARATION

Prospecting

Being an international corporation, Kimberly-Clark Australia & New Zealand can use these strategic prospecting methods: 1) Networking, 2) Trade Shows, and 3) Company Records (Ingram et al., 2015).

Having an exceptional brand reputation, salespeople may use networking to meet the centres of influence and industry experts in the industries of their current customers such as corporate, manufacturing, hospitality, and aviation. Networking aims to increase number of leads and convert them to prospects and to sales by gaining their trust over time.  (Howlett, 2015)

Another prospecting method can also be done through trade show events or exhibits by manufacturing, corporate offices, hotels, and even restaurants. Trade shows can be an opportunity for the salespeople to talk personally and have direct contact with the prospects’ employees. This can also be a way to know the nature of their company, their service offerings, and their possible needs.

Moreover, salespeople may use the company records and look for the previous clients who availed paper towel dispenser installation services and paper towel supplies and did not continue their contract. Salespeople may also look back to the previous e-mails or list of phone calls regarding inquiries that were not converted to sales. These previous inquiries from companies who could not afford Kimberly-Clark’s services and products before, have the possibility to have grown and now have a better set of resources.

Preparing Sales Dialogue

As mentioned, Kimberly-Clark promotes safer, productive, and healthier workplace by using their products. It is important for the salespeople to create a customer-focused and organised sales dialogue and presentations that will show their genuine care, credibility, and to clarify their value proposition to their prospects.

To be able to do this, they must prepare and follow the 9-step sales dialogue template as proposed by authors Ingram, LaForge, Avila, Schwepker, Jr., & William (2015):

1. Prospect Information – information about the company name, the nature of business, and name of decision maker
2. Customer Value Proposition – a description of the solution that Kimberly-Clark can offer, mentioning their avialable products and services
3. Sales Call Objectives – the outcome of the sales dialogue whether it is introducing the company, discussing their needs in detail, or making them purchase
4. Linking Buying Motives, Benefits, Support Information, and Reinforcement Methods – this maps out the rational and emotional buying motives of all the persons in the buying team, and specifically links them to benefits that Kimberly-Clark offer. This section also includes all the support information that will prove their value proposition and the relative methods of presentation that are appropriate or required.
5. Current Suppliers– this includes the information about the current competitors that Kimberly-Clark aims to replace
6. Beginning the Sales Dialogue – using the Assessment – Discovery – Activation – Projection – Transition to presentaion process, the dialogue must be a consultative conversation
7. Anticipated Prospect Questions and Objections, with Planned Responses – prepare the possible question that prospect may have and answer them in advance
8. Earn Prospect Commitment – this is by setting next appointment or sales call
9. Building Value through Follow-up Action – this could be the next day or week, asking for their thoughts on the proposal

4. POSSIBLE SALES RESISTANCE TO ENCOUNTER

Resistances

The possible resistances that the prospects may have could be need, price, and time objection. Although Kimberly-Clark has a good brand reputation, some SMEs, accommodation, or manufacturing businesses may find it unnecessary to have them specifically as paper hygiene supplies provider because of the availability of their products in the B2C market such as supermarkets and warehouses, where they can buy them individually and in their desired time. According to Porter’s Five Forces, an intense competitive rivalry and high threat of substition in the market gives the customers the flexibility to buy elsewhere.

Another one is price objection because of its popularity. Being an international corporation, customers have the impression that their services and products are expensive, considering their quality offer as well. Lastly, customers may have time objection or delays in decision-making. Purchasing Kimberly-Clark’s services and products can be considered as big step of investment for the companies because it concerns their employees’ and customers’ hygiene and safety. The companies may take their time in deciding whether they really need to have a specific provider, how long will they avail the service, and the products that they only need.

Approach to overcome resistances

During the sales dialogue, salespeople may use the LAARC Method  to overcome their prospects’ objections. First, they must Listen sincerely to their concerns, Acknowledge that their concerns are valid and heard, Assess if they have properly understood the concerns and repeat it again to the customers, Respond with appropriate answers and supporting information to back the solution, and Confirm with the customers if they are satisfied with the answers given.

For the said need objection, sales people may use Translation or Boomerang approach to convert the objection to a reason to buy. Although available in the B2C market, availing their high-end and scheduled supplies can save the companies time and effort in buying and installation.

To overcome the price objection, they may use Forestalling approach. It is given that their price can be high, but they can highlight the quality and value that they offer during the presenation which can also be supported by Third-Party Reinforcements or testimonials and feedbacks by their exisiting customers.

Lastly, to overcome time-objection, salespeople must be patient and sensitive while waiting for their buyers’ decision. However, after giving them an adequate time to decide, they should be reminded of the possible price hike because of the changing market situation and demands (Ingram et al., 2015).

5. PERSONAL AND TERRITORY MANAGEMENT STRATEGY

Importance of goal-setting in sales

In today’s market, salespeople sell smarter rather than sell harder. This can be done with self-leadership whereas they identify their desired outcomes first before taking the action to achieve them. The key to effective self-leadership is setting goals and objectives that are realistic yet challenging, specific and quantifiable, and time specific. In this way, salespeople can efficiently use their time and skills, and allocate the company’s resources in line with their game plan, making them well-prepared and motivated throughout the process (Ingram et al., 2015).

Four different levels of goals

The four levels of goals are: 1) Personal, 2) Territory, 3) Account, and 4) Sales Call Goals.

Personal goals are the salesperson’s individual desired work outcomes such as annual income/ commission target, job promotion, or self-training and development. Next is the Territory goals which identify the salesperson’s target amount of sales/activities within an area that will help him achieve his personal goals. Account goals are the target number of products that a salesperson need to sell to each individual customers within the territory. Lastly, Sales Call goals identify the target amount of products the salesperson need to sell per transaction to each account within the territory in order to achieve his personal goal (Ingram et al., 2015).

For example, a Kimberly-Clark salesperson’s personal goal is to have an NZ$85,000 annual income. If he receives 10% commission on sales, then his territory goal is NZ$850,000 worth of products. If there are 8 big accounts and 5 small accounts in his territory, then he must sell NZ$85,000 worth of products to each 8 big accounts that will total in NZ$680,000. For the remaining 5 small accounts, he must sell NZ$34,000 each that will total to NZ$170,000, thus achieving his NZ$850,000 goal. If he calls the 8 big accounts once a month in a year, he must sell NZ$7,083.33 in each sales call. For the remaining 5 small accounts, to be able to achieve the account goal of NZ$170,000, he must call them twice a month in a year and sell NZ$1416.66 worth of products. Mapping out these goals will help the salesperson to allocate his time and energy more efficiently.

Territory Analysis and Accounts Classification

The Territory Analysis identifies the name and location of the accounts in the country. On the other hand, Accounts Classification identifies the type of products/services they buy and their motives. It also shows the amount and buying pattern of the accounts, the person in charge in purchasing, the buying team in their company, and the potential sales that they can gain through them (Ingram et al., 2015).

According to the data from StatsNZ (see fig. 1) and in line with the existing industry partners of Kimberly-Clark in New Zealand, it is identified that three of which has the most number of businesses (prospects) in lower North Island, namely Accommodation and Food industry in blue colour, Administration and Support services/IT and finance (Corporate industry) in orange and yellow colour, and Manufacturing industry in grey colour (NZ.Stat, 2018)

Figure 1. Predominant Industry in North Island by number of employees(NZ.Stat, 2018)

To classify the accounts, Single-Factor Analysis can be used as it can simplify the sales potential of each account according to its category (Ingram et al., 2015). The categories identified in this analysis are all based on the pre-dominant industries in lower North Island of New Zealand. As an example of this analysis, see table 1:

Table 1. Single-Factor Analysis according to category

For the Accommodation & Food Services, the high number of activities/operations of the businesses in this area are seasonal (winter and summer), which is why salesperson must make the sales call twice monthly on June-August and December-February, and once a month for the rest of the year that totals to 18 sales call annually.

In the case of corporate offices (Admin and Support Services and IT and Financial services), frequency of sales call may only be done once a month because of the passive nature and employee count of the companies, regardless of their locations around lower North Island.

Lastly, for the manufacturing services, sales calls must be more frequent. Salespeople may call them thrice a month because of their active nature of operations. In manufacturing, companies are very concerned with workplace safety and hygiene as this may affect their productivity and final product quality, thus may create a strong demand for hygiene supplies and services from Kimberly-Clark. 

Territory Routing Plan

Figure 2. Lower North Island Map (Maoripakeha, n.d.)

Given that the accounts are dispersed and are scattered around lower North Island, salespeople may use the Leapfrog routing plan which is effective in this type of territory. In Leapfrog routing, salesperson will start from the north (Putaruru) and work with the ABC accounts all the way to south (Wellington) and then back to north via east (Dannevirke to Gisborne) and then back to Auckland office (Ingram et al., 2015).

6. ACTIONS TO ENSURE CUSTOMER SATISFACTION

Authors Ingram, LaForge, Avila, Schwepker, Jr., & William (2015) listed five activities to ensure customer satisfaction and build long-term relationships:

1. Remembering the customer after the sale

To demonstrate the seller’s commitment to the buyer, he must never stop providing relevant information especially after the sale. He must show his appreciation by expressing gratitude and concern through follow-up feedbacks about the products sold to them. This is one of the keys to maintain a good and long-term customer relationship, that can lead to the next transaction opportunity.

2. Expediting orders and monitoring installation

Although salespeople set an estimated time of delivery in the sales contract, he must give effort in preventing delays and if possible, an early delivery of the product, and be able to inform the buyer from time to time. He must also be always present during the installation process on site to show his commitment to their transaction and and his credibility.

3. Training customer personnel

To ensure that there are available employees to assist the customers all the time, company must train more than one employee in attending to customer inquiries, concerns, and even product technical problems. In this way, the company may show that all their employees have the expertise and the buyers will receive the same quality of service.

4. Correcting billing errors

In case of billing errors, salesperson must immediately apologise and take action to find the fault and correct it. This must be done as soon as possible as this can affect the company’s credibility.

5. Resolving complains

Complaints are inevitable. Companies must systematically monitor and address service failures to be able to resolve and avoid repitition. Complaints can be minimised by being truthful and honest about the quality of product starting from the sales call, to close of sale, until feedback follow-up.

References

• Employment New Zealand. (2019). Retrieved from Ministry of Business, Innovation, and Employment: https://www.employment.govt.nz/workplace-policies/health-and-safety-at-work/
• Howlett, L. (2015). Sandler Training. Retrieved from https://www.southeast.sandler.com/blog/attitude-belief/networking-is-a-prospecting-activity
• ILO. (2006). International Labour Office. Retrieved from http://www.ilo.org/public/english/standards/relm/gb/docs/gb295/pdf/esp-3.pdf
• Ingram, T., LaForge, R., Avila, R., Schwepker, Jr., C., & Williams, M. (2015). Sell 4. Stamford: Cengage Learning.
• Kimberly-Clark Australia & New Zealand. (2012). Retrieved from http://www.kimberly-clark.com.au/en/our-company/history/
• Maoripakeha. (n.d.). Retrieved from http://maoripakeha.co.nz/wp-content/uploads/The-North-Island.gif
• NZ.Stat. (2018). Retrieved from http://statsnz.maps.arcgis.com/apps/webappviewer/index.html?id=cf4f20ed7c674478b136e2752127cc14
• Witt, D. (2017). Blanchard LeaderChat. Retrieved from https://leaderchat.org/2017/06/01/new-research-underscores-benefits-of-a-self-leadership-culture/