Objectives

Vermont Teddy Bear Company seeks to present teddy bears as substitutes for flowers as a form of gift in South Korea. Through its teddy bears, the company wants to introduce a product that is fun; unique; and is likely to create a lasting impression on the target audience. The sales plan will also help to create a competitive advantage by introducing the product into the new market and convincing the target audience to seek out teddy bears from Vermont over others in the market.

Step One: International sales management philosophy

South Korea is an ideal market as its political and economic environment is stable and efficient enough to ensure the success of businesses operating in the region. The country is one of the industrialized in the OECD region not to mention its ability to engage in trade with partners such as Japan, China and the United States. A country’s political environment is crucial for the success of a business and the conditions in South Korea greatly favor Vermont’s entry into the region. The country is also a major player in the global international trade and the high cost of imports is another reason why venturing into the South Korean Market is likely to be profitable for Vermont.

Step Two: Core Competencies

Standardization

South Korea greatly follows the teachings of Confucius especially in relation to values and ethics. Vermont Teddy Bear Company will therefore rely on standardization as its core competency. The company will ensure that the teddy bears sold are of the highest level of quality and that they meet the customer’s expectations for value and pricing. This will involve ensuring that the variations present in the types of teddy bears sold is only limited to appearance and customer preference. The materials used will be similar in terms of quality, durability and other measures of quality to ensure customers get value for their money.

Step Three: recruitment plan

Recruitment Referral Program

The company will rely on a referral program where current employees will be encouraged to refer sales people with exceptional skills and would be a perfect fit for the company. The approach is ideal in that, employees possess a lot of information regarding operations within the organization and are more informed on the type of employee needed to fill a vacant position. It also makes employees part of the decision-making process, ensuring that the decisions agreed on are as a result of the cooperation between employees and top management (Thorne, 2020). Incentives such as bonuses and company retreats can be used to encourage employees to present the best suggestions and in so doing, help recruit the most suitable candidates for the job.

Step Four: International sales training program

Learning Management System (LMS)

The training program will rely on the sales management system which is a software that helps to administer, document, track, report, automate and deliver training and development programs. The system’s success lies in its ability to identify gaps in an individual’s training or learning through analyzing data available. When used at Vermont, the software will be used to collect data on areas that need improvement and then come up with strategies aimed at improving employee skills and knowledge through training.

Step Five: Compensation plan

Commission Plan

The plan will involve paying salespeople directly proportional to the sales they make for Vermont. The salesmen will be paid both straight commissions and commissions with draw. Since the company is venturing into a new business, compensation based on commission will encourage sales representatives to popularise the new product in the market so as to get more commission (Thorne, 2020). Since the company is yet to define the territory and nature of customers, commission will help gain better insight of the market without incurring losses.

Step Six: sales pitch

We at Vermont Teddy Bears seek to create a wide range of customized teddy bears that are ideal for all genders and age; suitable for all occasions; and are meticulously handcrafted to offer the best quality and guaranteed to last a lifetime.

The approach will focus on offering discounts to customers who purchase a specific number of teddy bears as a way to encourage bulk buying. The promotions will be held on specific days such as the first day of business, major holidays and other important dates depending on the South Korean calendar. Incentives such as buy one get one and issuing customers vouchers and coupons will be carried out to facilitate customer loyalty and encourage customers to make more purchases in future (Scott, 2019).

Step Eight: Promotion strategy

Point of Sale Display

          Points of sales are displays that are located near the checkout counter, near where the product is shelved, or in a location that is easily accessible to the customer. Other than enabling the company to showcase its product, points of sales also encourage consumers to buy on impulse (Schildge, 2019).

The teddy bears will therefore be displayed in specific locations as a way to attract new customers.