WEEK 3 HOMEWORK

Critique This Sales Dialogue

Charlotte Graham, a sales representative for No Fat Drinks, is calling on David Good General Manager
for Derrell Supermarkets. Grahams' purpose is to try and get Good to start stocking their new line of
herbal drinks. Read through their interaction.

CG: How are your new stores doing? Has the slowdown affected you?

DG: Well, some are doing okay but overall business seems to be slow. In fact, just this morning I was
with the President and...

CG: That is the reason I am here. I wanted to introduce you to our new line of herbal drinks. With
summer around the corner, I think these can certainly give a boost to your beverage sales. Have you
tried the product? You were at the trade-show last month weren't you?

DG: Yes, I was, but only for the first day and then I had to come back because of an emergency...

CG: Well, since you did not try it let me offer you a couple of samples. Try one right now and tell me
what you think?

DG: reaches out for the bottle

CG: This line has been extremely successful in Toronto, particularly in the high-income areas. We find
that with people taking on to natural health foods and herbal medicines in a big way these herbal drinks
should have a great response. I personally love them. In fact even my kids are drinking them.

DG: What are the margins?

CG: Solid 25% discount on the bulk packs and more than 35% on the refrigerated units. That is what
you will sell initially. I'll give you merchandising support for the first two weekends, and if you order all
six flavours I'll give you some advertising support as well.

DG: Is there any data from Toronto that I could look at? I mean, which are the popular flavours...

CG: Try it David, all of them are fantastic. If you place your order today I can have these in by Friday
and off we go.

DG: Are you carrying any brochures?

CG: Yes, as many as you want. I will get you a trial pack for your colleagues as well. I know they will
love it.

DG: Well, leave it with me and I'll call you back.

1) Do you think Charlotte is communicating effectively? What are the specific weaknesses in this
transaction?