Sales Incentive Scheme Current Situation
1. Sales Organization
Currently speaking, the sales organization is a three-tier org:
? Provincial Level: major responsible for defining the regulations of marketing and sales, and
responsible for overall management of the whole province sales and marketing
? City Level: responsible for fulfil the sales task and carry out marketing activities
? County Level: responsible for maintain the retail shop sales
Detail information regarding the sales org please refer to the attachment-sales org.
For Hebei & Shandong
CMBJCMHKHeadquarterMarketing Dept.Marketing Dept.Level
Marketing Dept.ProvincialBig CustomerChannelMarketingManagementManagementLevel
DistributionBig CustomerCustomerMarketing &ManagementService CenterService centerBilling centerCenterCityLevelRetailBig CustomerBillingMarketing18601258Shop(Self-Sales Rep.ManagerCenterRep.owned)CountyLevelBig CustomerCustomerRetail ShopServiceServiceFor Beijing
51858293.doc Page 1 of 4
HeadquarterMarketing Dept.Marketing Dept.Level
Vice GM responsible forSales & MarketingProvincialCustomerSuburbsMarketing Dept.Sales CenterLevelService CenterOperation Center
BusinessMobileAccountBillingA/RGeneralRetailBig CustomerChannelProcessPhone& BillingNetworSettlemAdminShopManagementManagementManagementRepairCenterkent
•Admin•Process Define•Mobile•Provide Service•Billing system•Develop•Billing system•AR•4 big, 3•Office•Statisticsphone•Promotionmaintenancedistributionrelated networksettlesmall•Promotionrepair•customer•Billing reportchannelmanagementment•SIM Cardrelationship•Provide guidanceSalesmanagementto the channel•Value-•FilingaddedserviceSales
2. Sales Force
? Retail Shop
Retail shop is the typical traditional sales force within China Mobile under the monopoly situation.
Here the retail shop refers to the shop operated and owned by China mobile itself. There are a lot
of people in retail shop, while the new customer number and the revenue brought by retail shop is
relatively low, and the actual role of retail shop seems like a face-to–face customer service center.
? Distribution channel
China mobile has explored the distribution channel using different kind of cooperation means, in
different province the means are slightly different, take Hebei Mobile for example :
- Cooperation Retail shop: which is the highest level among the distribution channels. - Qualification: it requires the agent should have good reputation, good credibility, etc.
- Cooperation: China mobile does not invest money but provide service guidance. the agent can
get the most favorable price through this cooperation means, and the agent can sell almost the
same product and services as the retail shop owned by CM itself. When the agent accomplish
sales to one new customer, it can get a certain amount of commission, once it sell some
value-added services (i.e. GPRS, WAP,etc).
- Of course the agent can not sale any product or services of the other competitors.
- Specializing Retail shop: which is almost the same as the above, the only difference is that
there are less requirement for the agent, and less service authorized, and also less favorable
pricing and commission.
- Franchising shop: this is the lowest level cooperation method, which even allows the agent to
sell other competitor’s product, and it can only sell SIM card to the customer.
Because of the market difference, different province are facing different situation in exploring the
distribution channel. For Hebei and Shandong, they are facing more burden in exploring the
51858293.doc Page 2 of 4
channels, since china Unicom is also grabbing the channels, while for Beijing mobile, the market is quite good for china mobile, the agents all wish to cooperate with China mobile, thus they are facing less burden under the current situation. Anyway, it is agreed that the channel is becoming more and more important in the future competition.
? Big customer management :
China mobile has one special department or function to deal with the sales and customer service for big customer and high-value customer. Currently, the major responsibility of the big customer manager is to maintain the good customer relationship with the big customer, and promote the value-added service to the big customer, thus to keep the customer base, and also increase the revenue. Since the competition between CM and China Unicom regarding grabbing the big customer is becoming more and more serious, China mobile focus more on the CRM and developing new big customer. Thus the big customer manager is no longer responsible only for big customer maintenance, but also responsible for developing new big customer.
3. Sales People
? Retail Shop Sales rep
Currently for most of the province, there are overstaffing problems in retail shop, since they are not actually sales staff, and can not bring the number of customer increasing actively, while this part of staff occupied big percentage of the staffing.
? Channel manager
- Marketing rep
- Sales rep
For the channel manager, the marketing rep is only responsible for providing guidance to the channel, while the sales rep is responsible for exploring the sales agent and channels. Anyway, currently they are all more focusing on the general affairs of developing the new channels instead of developing new agents actively.
? Big customer management
- Big customer manager
Big customer manager is the most important sales role in china mobile currently, but there are little encouragement and incentive for this part of sales people, they are responsible for fulfilling the sales target, but the compensation structure is almost the same as the other employee.
4. Current Sales measures
? Customer number
For sales department and the sales people, the performance measures is the customer number and the revenue. Actually they can manage the customer number measure by themselves, the revenue measure is allocated and managed by Finance department.
51858293.doc Page 3 of 4
5. Current Major concern
? Organization set up
There is no clear role definition between Marketing and sales, thus there are no clear business
process between sales and marketing, which is not good for the business operation ? Staffing not balance
Among the three sales force, the retail shop is actually not sales, they are just taking the role of
order taking and providing customer service, but they are entitle of sales, and there are about
60%-70% people in the retail shop. While on the other hand, the big customer manager is quite
important role, and there are only about 10% staffing in this department, thus the sales staffing
is not allocated scientifically, and the role of retail shop should be redefined. ? Performance measures is not linked to compensation
It is suggested to link the sales PM to compensation tightly to give the sales people enough
? Sales is not given enough respect
Because of the traditional concept, the sales is not paid much attention, thus the sales people
qualification is not high, the sales compensation is not attractive, which is not good for building
strong sales team.
51858293.doc Page 4 of 4