SYMBIOSIS INSTITUTE OF MANAGEMENT STUDIES

SALES AND DISTRIBUTION MANAGEMENT

ASSIGNMENT 2

SUBMITTED TO: MR. P. SUKHATME

DATE OF SUBMISSION: 09/01/2017.

Submitted by:
SABYASACHI ROY B 62
PROBLEM STATEMENT:

Ashok worked with CG Engineers Ltd. as the Regional Marketing manager (Industry sales) in the
Western Region. The National Sales manager transferred him to the Eastern Region as the
regional manager with instructions that he was expected to set things right in the Eastern
region as this region was not performing well on sales and profits.

Ashok’s main responsibility was to effectively manage 12 sales engineers and achieve the sales
volumes and profit quotas. For Ashok the Industrial customers in this region as well as the sales
engineers were new.

The sales engineers were paid a salary plus allowances such as house rent and medical expense
reimbursement. They were not given any incentives.

The Eastern region consisted of West Bengal, Bihar, Jharkhand, Orissa and Assam.

Ashok felt that the sales engineers did not cover this region effectively and were spending more
time travelling than in selling activities. After speaking to the sales engineers individually he
found that most of them were not motivated as they were not given freedom of operation and
were also not given recognition whenever they got good orders.

Ashok thought that this was a good opportunity for him to apply what he had learnt in the
management institute and achieve superior results.

Question: If you were in Ashok’s place what would you do achieve the sales and profit quotas?
Analysis of Problem:
Ashok has been transferred from the Western region to the Eastern Region. The Eastern Region largely
differs from the Western region in various aspects such as transportation modes, work culture which is
comparatively better in the West, political stability which is a problem in the East, literacy and
awareness levels, consumer behavior etc. He has at his disposal a team comprising of 12 sales engineers
who are tasked with meeting sales volumes, profits and quotas.

The sales engineers spend more time in travelling than in selling activities which ultimately places the
secondary purpose higher than the primary one. The act of customer acquisition, generating leads and
converting them is a process which takes time and is not a one-time activity.

Further compounding our problems is the presence of a sales team that lacks motivation. An
organization cannot afford to have the revenue driving agents at the state of low morale. It will impact
the organization negatively and prove to be a hindrance to achieving its overall objectives of sales
maximization and realizing profits. An organization may come up with breakthrough products and
services but if the sales team does not deliver then it could render all efforts futile.

Decision making is another factor that features on the list of problems. There may be situations when
decision making should be taken by the sales team and other times when they should be left to the
discretion of the sales team as per the situation demands. Having clarity in this area is another thing that
needs to be looked into.

One of the basic unstated needs of any professional is to be recognized and complimented for good
work. The absence of a recognition program could cast doubts on the abilities of a professional and
leave him doubting his own productivity and competence.

Solutions to the problem:

 Proper demarcation of sales territory:

The entire Eastern area could be divided into clear demarcated sales territories for sales
engineers to exhibit their work and exercise their influence. Overlapping and
intervention by sales engineers outside their designated territory should be avoided. If
there is to be an intervention, an external influence or the sort, it should be clearly
defined so as to avoid confusions. These sales engineers should look after their allotted
territories and do their best to generate the best results they can.
 Restructuring of Work schedules:
The Eastern region consists of some closely knit towns and some far dispersed cities.
The work schedule should be so designed that the sales engineers spend the after office
hours to travel by bus or trains to far off cities. It would ensure that they make better
use of the working hours to reach out to businesses and their clients while spending the
night to travel; an arrangement that would drive up their chances of generating
substantial leads.

 Performance assessment meetings:

Once targets are set, it is important for any company to track the performance over a
period of time to find the actual divergence between the estimated and the actual. It is
in bridging this gap between planned and actual that would help CG Engineers Ltd.
realize their goals.

 Designing recognition programs:

Just as every professional dislikes being criticized for erring on given tasks, they would
love to be recognized for delivering good work. The absence of proper recognition
would dampen employee morale and deal out a blow to the targets of the company. A
recognition program wherein the top performers are awarded for their valuable
contributions could be a good way to drive up the spirits. Sharing of experiences,
challenges and how the sales team could emerge out of the situation could open up
newer ways to deal with customers thereby creating a win-win situation.

 Re-Designing the incentive structures:

Incentive is a powerful propellant for any team. The performance levels are way higher
in cases where desired outputs have guaranteed promising incentives. The company
needs to look at the incentive structure and bring about changes that would drive the
sales team to meet their targets and drive the company ahead. Incentives would add
extra efforts to realizing their goals.

 Drive competition between teams:

A comparative evaluation would ensure that each member of the sales team is trying to
outdo the other. While this is good in a way, it must be ensured that all important
factors need to be taken into consideration before drawing inferences.
 Setup Grievance Redressal:
CG Engineers Ltd would benefit from the establishment of a grievance redressal team. It
would ensure that the problems faced by the sales team do not go unnoticed while
making the sales team feel assured and valued. It will unearth the problems that are
faced by the sales team, get problems solved and allow them to fully devote their
energy in the service of the company.

 Restructure the benefits granted:

Benefits broadly fall under two divisions: financial and non financial. Financial benefits
like bonuses, fringe benefits, salaries, pay hikes, commission could be upgraded. Non
financial benefits like the granting of rewards for outstanding performers, awards and
allowances could boost the morale and thereby the productivity of the employee. Sales
training programs could be delivered which would enable the team understand their
deficiencies, improve and learn about the new changes in the dynamic environment.
Personality development programs, self help programs, access to gymnasiums, soft skills
training programs could altogether give a new feeling of importance to the employee
and drive performance.