Introduction. One week ago the sales manager of CPKELCO Mr.

Anders Boisen Thgersen presented the company information based to our report which give us opportunities to start the report of CPKELCO in Turkish market. From his speech we knew that the product pectin is more profitable than other products .So our group decided to work on the how CPKELCO increase their sale volume. After having read our report, the management of CPKELCO and our teacher will understand about the potential market by implementation of our sales strategy in the Turkish market. Problem formulation. How CPKELCO sales more product to make profit by pushing Pectin product in a specific market Turkey by better distribution structure, improving sales channel , implementation some strategic term with legal solutions . In that perspective, the following issues have to be answered: 1. What sales strategy should be implemented in order to sell well to the different industry in Turkey? 2. Based on the choice on the sales strategy, what kind of sales distributer can make more profitable situation? 3. In order to efficiently reach the target group, what sales and distributions channels should be adopted? 4. What types of supply chain can support the sales organization? How this supply chain will be different to the traditional Turkey market? 5. What are the financial consequences of the chosen strategy? Is the sales potential in the Turkey market sufficient enough to cover the expenses? According to these issues in this report a strategic benchmark analysis comparing with other competitor to find out some ways to improve the business of Pectin product. What sales strategy should be implemented in order to sell well to the beverage industry in Turkey by the use of Pectin product?

Description and limitation of the project: Our target group is the beverage industry. Our job will be to develop our sales strategy to be able to achieve a growth in the Turkish market. Here we are only focusing on the beverage industry in Turkey instead of other food industry. Concerning the completion and market analysis has been chosen for the competitor analyzed.

Methodology: In this chapter we will point out our research method and data collection. All the data collected are secondary sources of information. For example: We have been on our companys presented report, different web site to find out the different players in the beverage industry of Pectin product in Turkey. We have consulted divers few article from web site. Concerning the other strategic situation we have used annual report of CPKelco. Moreover some theories have been used books and lectures from our current and previous semester. As the data used in this report is mostly based on secondary data. So the situation is posing clearly an issue on reliability of the information collected. Since it is quiet impossible to verify the information to gained from other sources ex. Internet, annual report. Based on this project we have implemented qualitative performance measures to implement few activitiesa. Internal and external relationships. b. Initiative and judgment. c. Communications with management. d. Creativity. e. Attitude and morale etc. Product specification and interested customer/ Market segment

Pectin1 CP Kelco is the worlds leading pectin producer. GENU Pectins have established their position within the food industry as uniform gelling and texturizing agents of high quality. Recent discoveries in the personal care and beauty market with GENU Pectins are also showing progress to establishing GENU as a nature-based skin feel aid, stabilizer and pH balancing ingredient. With more than 50 years of experience in pectin production, CP Kelco is well prepared to serve customers as an acknowledged and reliable partner. Working with a broad portfolio of pectin products, CP Kelco can help customers master the art of creating texture or stabilization of products. Source: Function: Citrus Peels, Sugar Beet Pulp

Gelling, thickening and stabilizing; excellent acid-stability, skin pH balancing

Description: GENU pectins are polysaccharides derived from naturally occurring structural components in fruits and vegetables. The major commercial raw material source is citrus peel, although CP Kelco also produces pectin derived from sugar beets.

Pectin occurs in terrestrial plants and is abundant in most vegetables and fruits. Commercial pectin is produced by extraction of edible plant material in hot, acidified water followed by isolation of the pectin from the ensuing solution. The dominant raw material is the rind of citrus fruit. Apple pomace and sugar beet pulp are also used. Pectin readily forms gels under the conditions that characterize jam, i.e., presence of dissolved sugar and fairly low pH. Prior to the introduction of commercial pectin, homemade jam was gelled by natural pectin in the fruit. Pectin-rich fruit was a necessary part of the recipes. Jam is the traditional application for pectin, but today this is far from being the only one. GENU pectins are finding increasing use, particularly as gelling agents, but also as viscosity builders, protective colloids and stabilizers in a variety of food and beverage products. Selecting appropriate raw materials and processing conditions allows control of the average structural parameters. A wide range of pectin types is available. Pectin for food
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http://www.cpkelco.com/products-pectin.html

application is usually standardized to ensure performance properties are kept constant and predictable from batch to batch in spite of natural variation. There are two basic types of GENU pectin, differing in Degree of methyl Esterification (DE):

High methylester (HM) pectin, DE higher than 50, forms gels and structured liquids under conditions of low pH and low water activity (for example, at high concentrations of sugar, sorbitol or glycerol).

Low methylester (LM) pectin, DE lower than 50, forms gels in the presence of divalent cations, such as calcium and magnesium. Choice of strategy (Theoretical approaches):

Strategic decision making Model

Fig 12

Industry Dynamics Competitive Analysis Although CPKELCO already exists in Turkish market, it is necessary to analysis porters 5 forces to analysis competitive market scenario. As we know that porters 5 forces is a framework for the industry analysis and business strategy development develop .porters 5 forces is important to analysis why potential costumer buy your product. It helps to understand the market you are selling, other companies selling in your market, and to understand how and why you are better than any of the products currently in the market. Porters 5 forces comprises different situation of market entry. Where the threat of new entrants depends on bargaining power of suppliers, bargaining power of customer, threat of new entry and threat of substitute which are the competitive rivalry within the industry. CPKELCO competitive situation

A pectin industry in Turkey as CPKELCO and Danisco has high, where they are covering high market share and also other local Pectin companies are also providing services too. Due to lack of actual data it is hard to analysis fact situations of competitors Bargaining Power of Customers The bargaining power of customers determines how much customers can impose pressure on margins and volumes. Customers bargaining power is high in these situations like supplying industry comprises a large number of small operators, with high fixed costs, the product is undifferentiated and can be replaces by substitutes. Some time switching to an alternative product is relatively simple and is not related to high costs, as well as customer knows about the production costs of the product, there is the possibility for the customer integrating backwards. Threat of New Entrants

http://www.staunstrup.net/BA_Int_Sales/Semesterplan_BIS_SOL_6_sem_feb_11_ver_1.htm

In a high competitive market, it is easier to enter the new market. In this situation, new entrants like new small and chiness companies could change major determinants of the market environment for example market shares, prices, customer loyalty at any time. There is always a latent pressure for reaction and adjustment for existing players in this industry.CPKELCO should continue on their brand loyal like they have done on their sector. In most of the situation all the major existing player has control on their distribution channel and close customer relationship like long term relationship and long term contract. In some situation government, action and switching costs of customer create threat on existing market. Threat of Substitutes

There is always threat from substitute, if there is alternative of the product available in market. In such situation customer start to look after the service they providing, lowest price, high performance, of the company in same business. CPKELCO can take advantage of that situation by providing brand loyalty, Close customer relation and providing service with less price but high quality. Competitive Rivalry between Existing Players

This force describes the intensity of competition between existing players (companies) in an industry. High competitive pressure results in pressure on prices, margins, and hence, on profitability for every single company in the industry. Competition between existing players is likely to be high if there are many players in same size like in Turkish beverage business and similar strategies they are adapting. In such situation there is not much more different between products but there is always mater about the price mean too much competition on price structure for products.. Institutional Factors. SWOT Analysis SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the

objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs. First, the decision makers have to determine whether the objective is attainable, given the SWOTs. If the objective is NOT attainable a different objective must be selected and the process repeated. Strength
Strong focus on R&D and innovation to add more advanced and customized products in its portfolio -Wide geographic presence

Increasingly liberal trade and investment climate The population is interested in new product Weaknesses

Prefer fresh foods Large part of the population still have low incomes. Opportunities
Growth in biotechnology business driven by rising demand from middle east economies

Reduced inflation, strengthen domestic demand Large growth in the processed food industries Improved competitiveness of agricultural sector Threats

Rising in energy cost Economic downturn will turn customers away from high value food Religious extremism or terrorist activity will deter foreign investors

80/20 Rule

Fig. 2

80/20 rule mean getting 80 % of revenue from 20 % customer through the account sale. That mean they try to understand their account customer (20%) very closely. They will treat rest 80 % customer which generate 20 % revenue different way. It means they will outsource and pricing program for less valuable customer. Focus on most 80/20 rule and profitable customer; they are especially concerning most valuable customer with trying to understand better to solve their problem. It means they are focusing relationship approach to their customers. Without focus on close relationship company cannot maintain 80 % revenue from 20 % customers.

Implement of Key Account Management (KAM)

The competitive differentiation derived from Key Account Management for understanding few activities according to Turkey market to increase the sales functions and controlling the business marketa. Understand each customer and anticipate their needs. b. Appraise their potential requirements. c. Appreciate sources of risk, cost and profitable situation. d. Develop appropriate strategies for each customer. e. Develop better implementation processes. f. Monitor actions and improve results.

Design of the sales force: Sales plan sales plan is the process of estimating what your businesss sales are going to be in the future. Sales forecasting is an integral part of business management. Without a solid idea of what your future sales are going to be, you cant manage your inventory or your cash flow or plan for growth. The purpose of sales forecasting is to provide information that you can use to make intelligent business decisions. In today's economy, big and small businesses are seeking every opportunity to win sales through competitive advantages. Smart owners of small business know a sales strategy can create a competitive advantage So that organizing and developing sales force is very essential because sales people directly impact the satisfaction and long-term relationship their organization have with their customers. We will continue to talk about importance of developing sales force, setting goals and managing sales force in general. Likewise planning hierarchy and the way company can grow up. Organizing and Designing Sales Force

CPKELCO should be achieving the goal to maintaining the organizing and designing sale force therefore to obtain the benefit from Turkish market and this sale force are depending upon the environment. company goal and product nature . Since the product nature and Strategic goal of company is to be best choice of all existing and new customers and reliable and long term partnership with them Recruiting and selecting right sale people There are few challenges quite so tiring as trying to recruit an effective sales force. Because of its impact on the company's bottom line, selecting the right sales people is a critical area that requires a lot of attention. When the sales force does not achieve the desired results, more sales training programs are established and the sales representatives with the lowest level of performance are soon replaced. It seems to be a never ending cycle in which sales managers see little hope for relief. In most companies, 80% of the sales seem to come from 20% of the sales force. Sale strategy In today's economy, big and small businesses are seeking every opportunity to win sales through competitive advantages. Smart owners of small business know a sales strategy can create a competitive advantage. Selling consists of two main functions: tactics and strategy. Sales strategy is the planning of sales activities: methods of reaching clients, competitive differences and resources available. Tactics involves the day-to-day selling: prospecting, sales process, and follow-up. The tactics of selling are very important but equally vital is the strategy of sales. The advantages are too compelling to ignore Relationship strategy It is very essentials that sales plans should consider and address the existing customers. Establishing relationship marketing as sales plans are driven by marketing plans, Company should exercise to find other potential customers. CPKELCO has to focus on long-term relationship with the customers. An effective use of CRM is required to value customers and increase the sale. As already explained company want to maintain closed relationship with customer with specialized service. Customer also wants to have high focus on their production process as they

follow that ISO standard on production process. So obviously they want to have all the technical and special service and information regarding the products. So we realized and found that CPKELCO have to design sales force like they can provide specialize service and solve customer problem which they are facing every time.

Customer Understanding3 CpKelco customer service representatives have one mission:We are committed to quality service, meeting or exceeding the needs of those who count on our availability and skills to deliver a service that is valued by our Customers. Customer Service is a Team Effort Continually refining and upgrading our customer support is done by listening to customers, responding to their requests and meeting our commitments. The quality of this service is driven by a desire to flawlessly execute our processes and is based on a personal commitment to satisfying customer expectations. At CP Kelco, we realize that executing on this commitment requires a deep understanding of service components: responsiveness, accuracy, responsibility, accountability and thoroughness. CP Kelco operates an integrated Customer Management System to ensure our order fulfillment processes, although global in scope, address the regional nature of our customers business. Sales function with the distributor in Turkey: a) Continuous development of sales function: The company began focusing on sales to identify based on few activitiesa. Continuity of the company or organization and the relationship. b. Consistency in offerings and in service.

http://www.cpkelco.com/services-customer-support.html

c. Sustainability of the product and service. d. Understanding of the customers real issues.

b) Effective communication skills: It is the important part of the company to able communicate with their distributors. c) Problem solving skills: If a distributor in Turkey need any specific requirement then CpKelco should be able to

Offer a better product or solution than the specific on the customer asked for. Offer a broader solution that the customer didnt even know they needed of wanted. Offer additional products or services with their main products Pectin to increase their sales and also exceed the customer expectations.

d) Improving organization skills: As the company is going to success to improve their sales in a well organized way so the management team should help their employer to improve organization skills. e) Maintaining customer relationship: To be closer and getting in tou8ch with their customer in Turkey the company should keep customers informed of things like New releases of a product they are using. Changes to a product or service they are using. Any problems that have been discovered with a product they are using. Brand new products that the company will think customer will be interested in.

f) Selling the existing customer: To facilitate future sales to existing customers. The company sales department will need to keep detailed information on the customer. This will help the company to target the right customers in Turkey when the company is offering their running product and also new products for promotions. g) Motivation and incentive for distributers: To motivate and give them incentives it can help to earn revenue of their products by Common goals and success criteria. Mutual engagement and trust. Satisfaction in the profitable situation. Teamwork is the ability to work together towards a common vision.

Sales analysis: As CPKelco already in the Turkey market so they should analysis the sales function within the last few years. As a result it will helpful to make decision about the sales bya. Gathering, sorting, assessing and making decisions based upon sales revenue in Turkey market. b. The sales manager must organize sales data to understand the sales forcast. c. For consistent evaluation its important to analyze both sales revenues and number of units sold in Turkey.

Supply chain and delivery system.

Fig 3

Fig 4 Propose supply chain.

The financial consequences of the sales strategies One major cost of our sales strategy will be the cost of the sales forces. Since we are planning to use a high specialized sales forces, our administrative cost will of course increase. CPKELCO will also implement a CRM (Customer Relationship Management) system in order to manage its relationship with its customers. Implementing this kind of system will also lead to another expense for the firm. All our products are produced in our plant in different countries. In that matter export this product from Denmark to Turkey will help naturally reliable cost of this company. We believe that our sales strategy will turn to be good for the company, especially in the long run.This strategy will have a positive impact on the company growth in terms of sales.

Management duty with legal solutions for the employee:

To maintain and control the business activities in Turkey , we need to follow some legal rule and regulation like 1. The legal relationship between employers and employees is important to satisfy them. Employment law as a legal discipline contains the rules on so called contracts of employment, i.e., agreements on the performance of personal work by which one party-the employee-places his labour at the disposal of another-the employer-in such a way that the latter has a regular power of instruction and control as towards the employee. 2. The business between CPKelco and the distributor in Turkey can follow an International Law for their business activities if something occurred. For Example: Which court of law both the parties will agree. Which law shall apply?

3. Moreover protecting international payments there is also few authorized company in the world. As for example if CPKelco, Denmark exports products in Turkey then this EKF.DK can make security for the payments of this firm.
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Sources: a. Lecture sheet: Basic selling skills, Key Account Management. b. Danish Business Law, 4th edition, Bent Iversen, Lars Lindencrone.

conclusion Reference Appendix

http://www.ekf.dk/da/Sider/default.aspx