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ADITI AGRO CHEMICALS – CASE STUDY

SUBMITTED BY:

NAME: Megha Shah


SUBJECT: Sales & Distribution Management
SECTION: B
ROLL NO.: 191333

SUBMITTED TO:

Prof. Anand Deo

Faculty, Marketing

Institute of Management,
Nirma University

Date of submission: 20th August, 2020


Q1. Is there an issue with sales targets for the sales representatives?

Yes, there are issues with the sales targets. The sales targets have to be set to increase the
sales volume and thereby driving profits of the company. Seeing from the above sales target
data, it can be seen that though the achievement rate is over 113% for Bhatinda, the growth
rate is just 12%, which shows the uneven distribution of sales targets for the reason. It simply
means that the sales target for this year has been less than the previous year. A more detailed
account of the same has been shown below:

Q2. Who is the star performer here?

Since the only metric for calculating performance mentioned in the case is growth %, what I
believe is we need to use that to ascertain who can be called the star performer. From the data
given, it is Raman who has attained a growth rate of 25% compared to Jan – Jun previous
year. Therefore, I would choose him to be the star performer.

Q3. Raman is considering leaving the organization as he feels overburdened and


underpaid. What can the company do to retain him?

Many a times, due to a feeling of underappreciation, employees feel that they are not satisfied
with their job and wish to leave. It becomes the job of managers to make efforts to retain him.
In order to retain Raman, the company should:

1. Offer better incentives, either monetary or non-monetary


2. Offer him a leadership or mentorship role
3. Acknowledge his contributions through awards or recognition of any such kind
4. Offer him a promotion, or involve him in training new representatives
5. Send him to attend seminars or trade fairs abroad, where he can display his skills as well
as get the incentive of traveling.
Q4. What could be the territories of future growth?

Despite having less growth rate, the achievement rate has been comparatively higher in
Bathinda and Ambala as compared to other territories. Therefore, they have the capacity to
take on higher sales targets and even accomplish them. Growth can further be boosted by
incentives for the sales force.

Q5. Do you want to revise the annual targets? If yes, do suggest revised targets.

If the targets are not revised, the annual achievements (assuming the same rate of change and
growth) would be as stated in the case. However, these targets are very staggering and not
distributed fairly. Therefore, following would be the revised targets that would allow for a
relatively fair distribution of work among the regions and the sales representatives:

These new targets ensure all sales reps are growing as per potential, but in a fair manner.

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