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StepSmart Fitness

Group - 06
Sailesh Kodali | MBA05080
Sajid Khan | MBA06133
Sanya Nadaf | MBA06138
Shubhrangi Mishra | MBA06147
Sushant Mishra | MBA06155
Sameer Yenugula | MBA06169
Derek James | MBA06184
5C Framework
01 02 03 04

Company Customer Collaborators Context


• Manufacturer of • Private Clubs • Big box retailers • US health clubs
exercise • Home Consumers • Sporting industry was highly
equipments • Universities equipment retail fragmented
• 18% Share • Training facilities • No establishment
chains
market leader
• Products: Retail, • Residential • Online retailers
Private and property managers
Institutional, • Fee-based health
Commercial clubs
products
• Product Line:
Cardio, Strength,
Technology, small
exercise eqipment.
Problem
Statement
• The BPI indicate that the purchasing power of the
district was 7.495 but StepSmart was able to
generate only 5.14% of the sales in 2011.
• If Cooper succeded in achieving the targeted
revenues, then he'll receive a bonus of 2% of the
sales, but if he fails to achieve the target then it
may lead to a loss of 50% of salesforce.

How to Increase the sales & achieve the target of


improving the sales by 7.49%?
Would termination result in achieving the goals?
Alternatives

Probation or providing Hire New Terminate Concetta Terminating Foster


guidance to its salesperson and Avery
employees without
terminating anybody
Evaluation of
Alternatives
Pros Cons
• Increase efficiency of employees • Cost of training the employees
Guidance to employees • Increased productivity

• Due to declining sales performance, he can • Above average performer


Terminating Foster be kept on probation or be terminated • Performance decline due to a personal problem
• Can be guided to achieve set target

• Comparitively low performers • Avery has a strong rapport with established clients
• Avery doesn't focus on innovative ideas to • Concetta knows the product and can easily
Terminating Concetta & Avery
grow business communicate with the clients
• Some clients dissatisfied with Concetta

• Will improve sales force quality


• Increasein cost of coaching and training the hired
Hiring New People • Will help in improving the target at a better
people
pace
01
Terminate Concetta & Avery, keep Foster on
probation
Recommendations 02 Duties rearranged according to performance

Cooper should get


03 Train in areas they lack
"The right people on the bus,
The wrong people off the bus, Change compensation program based on number of
04
and the right people in the right seats". active accounts and calls per year

05 Assign larger area to Hammond

06
Territory alignment is necessary

07 Divide the territory of Barrow

08 Hire 2-3 new employees to compensate for Concetta


& Avery
Thank you!

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