sales and distribution-a case study on cg engineers ltd
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8/18/2019 Sales and Distribution-A Case Study on CG Engineers Ltd
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Case Study on CG Engineers Ltd.
SUBMITED BY
Deven Rana A-10
SYMBIOSIS INSTITUTE OF MANAGEMENT STUDIES
SYMBIOSIS INTERNATIONAL UNIERSITY
!anuary "#$%
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A Case study on CG Engineers Ltd.
&ro'(e) State)ent*
Ashok worked with CG Engineers Ltd. as the Regional Marketing manager (Indstr! sales" inthe #estern Region. $he %ational &ales manager trans'erred him to the Eastern Region as the
regional manager with instrtions that he was e)*eted to set things right in the Eastern region
as this region was not *er'orming well on sales and *ro'its. Ashok+s main res*onsi,ilit! was to
e''etivel! manage 1 sales engineers and ahieve the sales volmes and *ro'it otas. /or
Ashok the Indstrial stomers in this region as well as the sales engineers were new.
$he sales engineers were *aid a salar! *ls allowanes sh as hose rent and medial e)*ense
reim,rsement. $he! were not given an! inentives. $he Eastern region onsisted o' #estengal ihar 2harkhand 3rissa and Assam. Ashok 'elt that the sales engineers did not over
this region e''etivel! and were s*ending more time travelling than in selling ativities. A'ter
s*eaking to the sales engineers individall! he 'ond that most o' them were not motivated as
the! were not given 'reedom o' o*eration and were also not given reognition whenever the! got
good orders. Ashok thoght that this was a good o**ortnit! 'or him to a**l! what he had learnt
in the management institte and ahieve s*erior reslts.
+uestion* I' !o were in Ashok+s *lae what wold !o do ahieve the sales and *ro'it otas4
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So(ution*
$he ase std! is not ver! large in terms o' volme ,t does some intriate details that annot
a''ord to ,e missed. $his is the reason wh! the soltion is strtred in a om*rehensi,le
manner.
/ollowing are the im*ortant details given in the ase std! and the in'erene derived 'rom them.
Ashok is ,eing trans'erred to the Eastern states o' India. $he demogra*his and the
*s!hogra*his o' the *eo*le living in these states an ,e in'erred.
$he team Ashok is ,eing made the s*ervisor o' onsists o' 1 sales managers. It+s a ,ig
team and an ,e divided to target ,igger areas. Ma5orit! time s*ent on travelling. $he sales 'ore mst ,e alloated e''iientl! to allow
'or more time to sell. Lak o' 'reedom o' o*eration o,served amongst the em*lo!ees.
%o additional Inentives other salar! and medial reim,rsements *rovided to the
em*lo!ees. A *rereisite to a sales 5o, is the inentive reward whih it o''ers ,ease it
hel*s drive the sales*erson to *t in more e''orts. A,sene o' this an ase lak o'
enthsiasm in the sales 'ore. Medial Reim,rsements. It+s a known 'at that medial reim,rsements are the most
a,sed 'orm o' ,ene'its that a om*an! o''ers. Lak o' motivation seen in em*lo!ees. A ke! harateristi o' ever! sess'l ,siness
is the highl! motivated ,ehavior o' the sales 'ore o' the om*an!. A non-motivated sales
'ore team old *rove to ,e almost 'atal 'or the 'irm6 A,sene o' *er'ormane reognition measres in the om*an!.
ased on the a,ove listed o,servations 'ond in the ase the *ro*osed soltions to ahieve the
sales and *ro'it ota are mentioned ,elow.
&(ease note7-$he sggestions are orres*onding to the 'indings that are given a,ove.
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$he 'irst thing that the Ashok shold
onentrate on is the Geologial-
demogra*his-*s!hogra*his trio o'
the region. $he *eo*le 'rom the Eastern
states are known to ,e reative
intelletal and smarter with a *en in
hand than an a)e6 &ine Ashok has ,een
newl! trans'erred to the East hene he
mst 'irst himsel' get edated in detail
a,ot the ,ehavioral as*ets o' the
*eo*le o' the region and also 'os on
ondting training sessions 'or the sales 'ore ,ased on his learning+s. $his will hel* the
sales 'ore target the stomers in a ,etter wa!.
$he team assigned to Ashok is o' a deent si8e. 9e shold tili8e the team e''iientl! and
tr! to e)*and the reah o' the *rodt to newer markets as this will hel* ta* the nta**ed
setions o' the region and ,oost sales.
-I' the 'inanes allow 'or then he mst also look to *romote the *rodt more via soial
and *rint media.
$he sales 'ore wastes ma5orit! o' its time travelling and hene this is ham*ering their
*rodtivit!. Ashok shold design the sales areas to
,e overed intelligentl! and tr! to avoid 'ar o'' and
heav! tra''i areas. I' not alread! *rovided he
shold also give ,ikes 'or 'aster travelling o' the
sales em*lo!ees. $hese set o' measres will hel*
inrease the nm,er o' stomers engaged in a da!.
$he sales 'ore is not ha**! with the amont o' atonom! on o*erations given ,! the
management head to them. Ashok shold give more res*onsi,ilities to the sales managers
with res*et to the *roess intriaies. #eekl! meeting shold ,e held disssing the
:need 'or im*rovement+ in the 'irm and ask 'or individal sggestions 'or ,oosting
revene 'rom them. $he em*lo!ees shold ,e enoraged to ,e *ro'essional
entre*reners.
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&elling is a high *ressre and stress'l 5o,. It reires highl! sel'-driven and motivated
*eo*le. Ashok+s 'irm does not *rovide
inentiv es along with salar! and other
e)*enses whih is a ma5or set-,ak to the
*er'ormane o' the team. Inentives are a
*rereisite to an! sess'l sales stint.
Ashok shold work ot e''etive wa!s o'
introding inentives to the C$C. &ome
sggestions
inlde7- Commission on ever! sale.
- &*eial rewards on ahieving sales targets- Additional *a! 'or stomer retention (i' a**lia,le"
In short Ashok shold talk to the higher management to introde inentive ,ased salar!
*akages 'or the sales *ersons. $his will de'initel! at as a *ro*eller to the *er'ormane
o' the 'irm in terms o' the sales generated.
Along with the addition o' inentives to the salar! *akage o' the sales em*lo!ees Ashok
shold also tr! to rede the ost ,eing inrred ,! the management on the medial
reim,rsements on the em*lo!ees. ;es medial reim,rsements is a good wa! to inrease
5o, satis'ation ,t it is also one o' the most a,sed 'orms o' ,ene'its o''ered ,! the
em*lo!er sine it is ver! onvenient 'or *eo*le to generate medial ,ills. $he sggestion
is that Ashok shold rede the ost on medial reim,rsement and se that mone! 'or
other investment ativities mentioned earlier in the soltion like giving ,ikes inreasing
inentives et.
$here is a lak o' motivation in the em*lo!ees and this is a ase o' ma5or onern 'or the
management. More em*lo!ee 'riendl! 9R *oliies
shold ,e introded into the s!stem. &ome
sggestions other than the sal inlde team
*arties a'ter ahievement o' goals good nm,er o'
holida!s travelling allowane and 5o, assrane.
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Reognition o' the hard work done ,! the em*lo!ees is e)tremel! rial 'or motivating
them to ontine the good work. A,sene o' the same in the 'irm is a**alling6 $his
shold ,e a *rime agenda in Ashok+s to-do list
.
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