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    Sales and Distribution Management END TERM (Suggested Answer) 1

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    Bhavs Reddy
    Rajesh, Kishore, Zaheer and Abhimanyu's monthly sales performance is presented based on various metrics like sales volume, demos, calls, new customers, customer satisfaction index (CSI), and number of outstanding days. Management has instructed to reduce the sales force by at least 50%. Based on the monthly average performance and assigned weights to each metric, the sales person with the lowest weighted score should be terminated to meet the 50% target.

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    Sales and Distribution Management END TERM (Suggested Answer) 1

    Uploaded by

    Bhavs Reddy
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    Rajesh, Kishore, Zaheer and Abhimanyu's monthly sales performance is presented based on various metrics like sales volume, demos, calls, new customers, customer satisfaction index (CSI), and number of outstanding days. Management has instructed to reduce the sales force by at least 50%. Based on the monthly average performance and assigned weights to each metric, the sales person with the lowest weighted score should be terminated to meet the 50% target.

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    Rajesh, Kishore, Zaheer and Abhimanyu's monthly sales performance is presented based on various metrics like sales volume, demos, calls, new customers, customer satisfaction index (CSI), and number of outstanding days. Management has instructed to reduce the sales force by at least 50%. Based on the monthly average performance and assigned weights to each metric, the sales person with the lowest weighted score should be terminated to meet the 50% target.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    25 views5 pages

    Sales and Distribution Management END TERM (Suggested Answer) 1

    Uploaded by

    Bhavs Reddy
    Rajesh, Kishore, Zaheer and Abhimanyu's monthly sales performance is presented based on various metrics like sales volume, demos, calls, new customers, customer satisfaction index (CSI), and number of outstanding days. Management has instructed to reduce the sales force by at least 50%. Based on the monthly average performance and assigned weights to each metric, the sales person with the lowest weighted score should be terminated to meet the 50% target.

    Copyright:

    © All Rights Reserved
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    Download as pdf or txt
    of 5

    SALES AND DISTRIBUTION MANAGEMENT

    END TERM (Suggested Answer)


    1.
    a). Explain different types of Quotas in detail. Discuss how the quota structure for a prescribed drug
    (pharma sector) differs from that of an quota structure while Industrial. (8 marks)

    Ans: Refer Chapter 8 of text book… pp 271 - 283


    b) Given below is the performance of four sales personnel reporting to Mr. Mathew, Head-Sales.
    Management has instructed to reduce the sales force at least to 50% of the existing members. Analyzing
    the recent monthly average performance of each sales person, discuss which sales people need to
    retained. Substantiate your answer with appropriate metrics. (12 marks)

    SALES Weights QUOTA ACHIEVEMENT


    PERSON
    RAJESH SALES 0.4 100 85
    VOLUME
    DEMOS 0.1 25 Per 18 per month
    month
    CALLS 0.05 200 per 220 per month
    month
    New 0.05 20 per 10 per month
    customers month
    Outstanding 0.2 10 days 20 days
    CSI (latest) 0.2 99 90
    QUOTA ACHIEVEMENT
    KISHORE SALES 0.4 500 425
    VOLUME
    DEMOS 0.1 50 Per 120 per month
    month
    CALLS 0.05 200 per 150 per month
    month
    New 0.05 50 per 25 per month
    customers month
    Outstanding 0.2 10 days 6 days
    CSI (latest) 0.2 99 90
    ZAHEER QUOTA ACHIEVEMENT
    SALES 0.4 1000 600
    VOLUME
    DEMOS 0.1 100 Per 60 per month
    month
    CALLS 0.05 200 per 300 per month
    month
    New 0.05 100 per 50 per month
    customers month
    Outstanding 0.2 10 days 30 days
    CSI (latest) 0.2 99 38
    ABHIMANYU QUOTA ACHIEVEMENT
    SALES 0.4 1500 750
    VOLUME
    DEMOS 0.1 100 Per 200 per month
    month
    CALLS 0.05 200 per 150 per month
    month
    New 0.05 300 per 100 per month
    customers month
    Outstanding 0.2 10 days 40 days
    CSI (latest) 0.2 99 62
    *CSI – customer satisfaction index measured every 6 months – 100 being the maximum index.

    Suggested Answer:
    Given below is the weighted score student needs to calculate for all the sales people. (example given
    for one sales person)

    Compare and discuss and confirm that sales person who is with less performance needs to be
    terminated.

    TARGET
    SALES Weights QUOTA ACHIEVEMENT performance
    objective
    PERSON
    SALES
    0.4 100 85 34 40
    RAJESH VOLUME
    DEMOS 0.1 25 18 1.8 2.5
    CALLS 0.05 200 220 11 10

    New
    0.05 20 10 0.5 1
    customers

    Outstanding 0.2 10 20 4 2

    CSI (latest) 0.2 99 90 18 19.8

    Weighted Score 69.3 75.3


    2.
    a). Discuss the functions of channel members. Explain different kinds of channel power that
    channel members can exercise. (8 marks)
    Ans: Chapter 16. Pages 510 to 529.

    b). An fmcg company from Ireland wants to enter into Indian market with two kinds of channels
    (Company – CFA – Stockiest – Retailer – End User & Company – Modern trade – End User). Cost
    of producing two of its skus (100 gms and 500 gms) are Rs. 60/- and Rs. 250/- respectively.
    Company’s management wants to earn at least 80% margin in 3-level channel and 90% margin in
    one level channel. The average margins range prevailing in this industry looks like for stockiest-
    4% to 6%; Modern trade – 20% to 24%; Retailer-16% to 20%. Analyze what could be the selling
    price range (MRP-lower limit and higher limit) company can fix across both these channels so as
    to launch two of its skus and earn the predetermined margins. (12 marks)

    Ans:

    3. a). Explain different types of channel conflicts illustrating two examples for each type of conflict.
    (8 marks)
    Ans: Chapter 16. Pages 617 to 623

    b). ‘Ramon’ a leading brand in personal care category has been reaching consumers through direct
    channel. Since many years, Ramon brand was being sold directly to consumers by its company
    sales people. To achieve higher growth, Management decided to add e-commerce site
    ‘ramon.com’ as a new channel. As they studied customer segments of the targeted market, they
    identified a few interesting facts. It was observed that ‘Ramon’ appeal to the mass market size of
    30,00,000 Indians aged between 25 to 40 yrs. Of this market, 13% doesn’t want to buy Ramon
    products and 17% customers would like to buy Ramon products, but not from Ramon sales
    representatives. 65% of target market want to buy through Ramon representatives. High attrition
    rate of sales representative has created lots of stranded customers (approximately 5, 00,000).
    There are 60,000 sales representatives working for Ramon, and on average, each representatives
    had about 12 customers in their lists.
    Based on the above given information, which type of customer they should target first to minimize
    channel conflict? (12 marks)

    total 3000000
    brand rejector 390000
    channle
    rejector 510000
    current
    costomer 720000
    stranded 500000
    total 2120000
    unserved 880000

    4. Life Fitness is an American fitness equipment company that specializes in the production and
    distribution of equipment such as stationary bikes and treadmills. They developed the industry's
    first electronic stationary bicycle. As of 2018, the company has over 1,700 employees and twelve
    manufacturing facilities around the world. Life Fitness Company is having four types of products,
    cardio, strength, accessories and digital. Products vary in the margin they contribute. One of
    the Area sales managers handling a team of six sales people, wants to know about gross margin
    percentage earned from each sales representative. Given below are the sales generated by all
    six sales personnel.

    Rank sales personnel based on gross margin earned? 10 marks

    Akash
    Gross Pandey Avnish Rakesh Rohit Maynak Ronit
    Margin Tiwari Mishra dubey Sharma Shukla
    cardio 42% 615317 306423 536427 369454 907527 26457
    strength 33% 327124 607548 405034 427544 520251 276241
    accessories 40% 659343 326547 368547 475203 9000547 175246
    digital 34% 338547 260543 260475 202457 296321 142346
    Total sales 1940331 1501061 1570483 1474658 10724646 620290

    Answer:

    Sales Person Sales Product wise


    Gross
    Margi Akash AvnishTiwa Rakesh Rohit Maynak Ronit
    ng Pandey ri Mishra dubey Sharma Shukla
    cardio 42% 615317 306423 536427 369454 907527 26457
    strength 33% 327124 607548 405034 427544 520251 276241
    accessor
    ies 40% 659343 326547 368547 475203 9000547 175246
    digital 34% 338547 260543 260475 202457 296321 142346
    Total
    sales 1940331 1501061 1570483 1474658 10724646 620290
    GM 745227.24 548391.92 594940.86 555176.78 4253812.11 220767.51
    5. Write short notes on …… 6 x 5 = 30 marks
    1. Personal selling process
    Ans: Refer Page No. 102 - 103
    2. Built up method Vs Break down method
    Ans: Refer Notes given – on territories
    3. ROI for a channel member with example
    Ans: Refer Notes given – on ROI
    4. Types of Distribution and Channel functions
    Ans: Refer page Numbers 510 -515
    5. Sales force evaluation
    Ans: Refer Notes given – 453

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