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    5C Analysis: Collaborators Customers Competitors Context

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    Ganesh Babu
    The document discusses the underperformance of a sales team in the New England district of a fitness equipment manufacturer. Specifically, the district's sales have grown more slowly than the region's sales and have only achieved 68.6% of the target BPI. Potential alternatives to address the issue include terminating underperforming salespeople, providing training, hiring new salespeople, putting salespeople on probation, or reshuffling sales territories. After evaluating the options, the recommendations are to train salespeople, hire new people to cover large territories, tie compensation to improvements, adjust territories based on capabilities, develop customized sales strategies, and recruit strategically.

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    5C Analysis: Collaborators Customers Competitors Context

    Uploaded by

    Ganesh Babu
    250 views5 pages
    The document discusses the underperformance of a sales team in the New England district of a fitness equipment manufacturer. Specifically, the district's sales have grown more slowly than the region's sales and have only achieved 68.6% of the target BPI. Potential alternatives to address the issue include terminating underperforming salespeople, providing training, hiring new salespeople, putting salespeople on probation, or reshuffling sales territories. After evaluating the options, the recommendations are to train salespeople, hire new people to cover large territories, tie compensation to improvements, adjust territories based on capabilities, develop customized sales strategies, and recruit strategically.

    Original Description:

    Stepsmart fitness case analysis

    Original Title

    Stepsmart fitness

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    The document discusses the underperformance of a sales team in the New England district of a fitness equipment manufacturer. Specifically, the district's sales have grown more slowly than the region's sales and have only achieved 68.6% of the target BPI. Potential alternatives to address the issue include terminating underperforming salespeople, providing training, hiring new salespeople, putting salespeople on probation, or reshuffling sales territories. After evaluating the options, the recommendations are to train salespeople, hire new people to cover large territories, tie compensation to improvements, adjust territories based on capabilities, develop customized sales strategies, and recruit strategically.

    Copyright:

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

    5C Analysis: Collaborators Customers Competitors Context

    Uploaded by

    Ganesh Babu
    The document discusses the underperformance of a sales team in the New England district of a fitness equipment manufacturer. Specifically, the district's sales have grown more slowly than the region's sales and have only achieved 68.6% of the target BPI. Potential alternatives to address the issue include terminating underperforming salespeople, providing training, hiring new salespeople, putting salespeople on probation, or reshuffling sales territories. After evaluating the options, the recommendations are to train salespeople, hire new people to cover large territories, tie compensation to improvements, adjust territories based on capabilities, develop customized sales strategies, and recruit strategically.

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    5C

    Analysis
    Company Collaborators Customers Competitors Context
    • Manufacturer of fitness • Retailers • Retail- 63% of StepSmart US • The industry was highly • Presence in multiple
    Equipment • Big box retailers sale & 27% market share in fragmented with no geographies increases
    • 18% of industry sale • Sporting retail chains segment. Big-Boz retailers, established market their instability
    • 540 Employee • Online retailers Sporting equipment retail leader • Jobs were scarce and an
    • Products – Cardio, chain, online retailers. • Threat from local average unemployment
    strength, Technology, • Private and Institutional- players lasted for 37 weeks.
    small exercise 7.7% of StepSmart US sales • Use of technology
    equipment. & 10% market share in among users were
    • New CEO assigned in segment. Private clubs, growing such as use of
    2011 and terminated Universities, training screens or wireless
    many employees. facilities, residential Property audio consoles while
    manager working out.
    • Commercial Product – 29.3%
    of market share & 17%
    market share in segment. Fee
    based health clubs
    Problem Statement
    Underperformance – As per marketing research data New England district’s sales team able to
    generate only 68.6% of given BPI. By the 2013, Cooper need to meet the 100% BPI target to avoid
    termination.
    As Region sale increased by 12% and 11% in 2010 and 2011 respectively where district sale only
    grew by 7% and 5%.

    Alternatives
    •Terminate some People.
    •Train employees.
    •Hire new Sales persons.
    •Probation period for underperforming salesperson.
    •Reshuffle the sales area among sales people.
    Evaluation of Options
    BPI of each sales Person – Based on Buying Power active percentage and Current
    active account percentage low and average performing sales persons can be either
    terminated or can be given training or can be kept on probation.
    Evaluation of Options
    Alternatives Pros Cons
    Terminate – Avery and concetta • We can come up with a new sales • Low morale of team.
    strategy for areas having less sales. • The relationship between the old
    • Dissatisfied customers can be taken sales person and the customers will
    care. be hindered.
    Train employees • Train them according to the • It may take some time for them to
    requirements of the sales area. learn and get results out of it.
    • In long run increase efficiency and • Retraining time and cost are lost.
    productivity.
    Hire new Sales persons. • Experience salesperson might • Training cost.
    increase sale. • Take time to learn about product and
    • Peer learning from new experienced customer.
    and working salesperson to the
    existing persons will increase
    Probation period for underperforming • Motivate and Get another chance to • Probation period could provide
    salesperson - Barrow improve sales. desired result or even might back
    fire.
    Reshuffle sales area • Reshuffle sales areas among sales • It must be taken up only if there is a
    person according to their ability and chances for improving outcome
    performance. otherwise it may lead to worse
    outcomes.
    Recommendations
    We can train and align the salespersons to rectify the issues and spear them towards.
    Hire new people to cover the large territory of Avery and Concetta.
    Compensation can be given according to the improvements in the buying power
    percentage and Active account percentage.
    Increasing or decreasing of the territory areas according to the capabilities of
    salesperson.
    Coming up with different training and sales strategy according to the sales areas.
    Recruitment of new sales person according to the strategy defined.

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