CASE 4

REALIGNING SALES TERRITORIES AT GARRICK OIL AND

LUBRICANTS

 COMPANY BACKGROUND
Garrick Oil and Lubricants (GOAL) is a multinational, operating in over 60 countries.
It is one of the top four companies worldwide in the oil and gas industry. GOAL is
known for its vertical integration and is successful in all branch regions. Franchises
worldwide manage downstream operations of Target. The business controlled about
770 franchised gas stations in 2014, and operated 46 company-owned gas stations in
large urban areas throughout Canada. 80% of those company-owned gas stations have
small convenience stores built into them.
The consumer sales department of GOAL is split into 11 regions across Canada.
Based on the number of franchisees each territory is subdivided into separate selling
territories. Through 11 regional sales teams, consisting of a Regional Sales Manager
(RSM), and various Territory Sales Managers (TSM), the National Vice-President of
Sales oversees the company's relationship with franchisees. The regional sales
department is responsible for maintaining service levels in convenience stores but is
focused mainly on selling gasoline and lubricants.

 PROBLEM STATEMENT
Sales for Garrick Oil and Lubricants (GOAL) in Northern Ontario Region started to
decline in 2009. The franchisees got less service, and deteriorated their relationship
with the company. Rob Doff, the regional sales manager at the time, felt this problem
was caused by complacency from the sales force. In 2010 Doff rearranged sales
territories to address this problem and made changes to the company's organizational
structure by reassigning salespeople to different operations.

 RECOMMENDATIONS

 Incentives introduced will provide the drive to do better. By having the additional
opportunity of Winning competitions for; the field most developed, the bulk of
new customers, the highest sales and this will give Target the highest overall
rating to reward the hardest-working staff.

 Jonathan will have to assess the areas to be tackled, their annual market (past,
current and potential) and redeploy the territories based on the sales staff's
expertise, skills, knowledge and experience.