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116 Sales and Distribution Menagement Case 4.1 cc Engineering Company—Achieving Quotas [Ashok Desai was transferred ftom western region, where he worked as area sales manager of CG Engineer ing Company, to easter region as regional marketing manager—industries. He was told by the companys general manager (Sales) that he was transferred from western region to eastern region to set things right, 2s eastern tegion was nor performing well on sales and profits. Ashok’s main responsibilities were to mam faze effectively 1 sales engineers and achieve the sales volume and contribution (to profits) quotas. For [Ashok not only the industrial customers but also the sales engineers were new. The sales engineers were compensated based on straight salary and perquisites like house rent allowance and medical reimbursement. [There was no incentive scheme. The territory af eastern region consisted of states of West Bengal, Bihar ‘Assam, and Orissa, Ashok fele that the sales engineers were not covering the market adequately and were not following any system of routing and scheduling. He also thought that salespeople were spending more time in travelling and less time in selling activities. After ralking to sales engineers individually, he got an impression thac most of them were not motivated, as they were not given adequate freedom of operations Jand recognition whenever they got good orders. Ashok thought that there was a good scope of applying what he had learnt in the management institute and achieve superior results as expected by the general manager Sales) [Question: Ifyou were Ashok, what would you do to achieve the sales volume and contsburion quotas? Case 4.2 MM Marketing Company—Territory and Quotas for a New Product Krishna Kumar, the marketing manager of MM Marketing Company was thinking how to go about de signing sales territories, assigning salespeople tothe territories and setting sales quotas, particulary as the Product was new: The new product, called Swishflow fan was a unique kind of a table fan with attractive ai-conditioner lke looks. Considering the initial production capacity of 1,00,000 nurabers in the fst year Krishna Kumar decided to market the product in and aroun Mumbai, where the marketing and sales office was located. The target consumers were household as well as commercial organisations, who could use this product as table-fan and wall-mounted fan Krishna Kumar thought chat the territory design should include geographical areas with high market potential for achieving the sales budget of 1,00,000 numbers in che first year and a growth of 25 per cent pet year for subsequent four years. He calculated a salesorce size of seven numbers, and decided to launch the| Product intially in major metos and cities in Maharashtra and Gujarat. Krishna Kumar was ofthe view that sales quotas should consider sales volume, selling expense, and also number of sales cals per day, in order fo have a proper control on salespeople. He wondered how to design sales terstories, what criteria should he consider while assigning salespersons to territories, and how to design the sales quotas considering the! factors mentioned above. [Question: If you were Krishna Kumar, what will you do and why?