Sales and Distribution-A Case Study on CG Engineers Ltd

 Case Study on CG Engineers Ltd.

SUBMITED BY

Deven Rana A-10

SYMBIOSIS INSTITUTE OF MANAGEMENT STUDIES

SYMBIOSIS INTERNATIONAL INTERNATIONAL UNIERSITY

!anuary "#

%$ A Case study on CG Engineers Ltd. &ro'(e) State)ent*

Ashok worked with CG Engineers Ltd. as the Regional Marketing manager (Indstr! sales" in the #estern Region. $he %ational &ales manager trans'erred him to the Eastern Region as the regional manager with instrtions that he was e)*eted to set things right in the Eastern region as this region was not *er'orming well on sales and *ro'its. Ashok+s main res*onsi,ilit! was to e''etivel! manage 1 sales engineers and ahieve the sales volmes and *ro'it otas. /or  Ashok the Indstrial stomers in this region as well as the sales engineers we re new. $he sales engineers were *aid a salar! *ls allowanes sh as hose rent and medial e)*ense reim,rsement. $he! were not given an! inentives. $he Eastern region onsisted o' #est engal ihar 2harkhand 3rissa and Assam. Ashok 'elt that the sales engineers did not over  this region e''etivel! and were s*ending more time travelling than in selling ativities. A'ter  s*eaking to the sales engineers individall! he 'ond that most o' them were not motivated as the! were not given 'reedom o' o*eration and were also not given reognition whenever the! got good orders. Ashok thoght that this was a good o**ortnit! 'or him to a**l! what he had learnt in the management institte and ahieve s*erior reslts. +uestion* I' !o were in Ashok+s *lae what wold !o do ahieve the sales and *ro'it otas4

So(ution*

$he ase std! is not ver! large in terms o' volme ,t does some intriate details that annot a''ord to ,e missed. $his is the reason wh! the soltion is strtred in a om*rehensi,le manner. /ollowing are the im*ortant details given in the ase std! and the in'erene derived 'rom them. 

Ashok is ,eing trans'erred to the Eastern states o' India. $he demogra*his and the

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 *s!hogra*his o' the *eo*le living in these states an ,e in'erred. $he team Ashok is ,eing made the s*ervisor o' onsists o' 1 sales managers. It+s a ,ig

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team and an ,e divided to target ,igger areas. Ma5orit! time s*ent on travelling. $he sales 'ore mst ,e alloated e''iientl! to allow

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'or more time to sell. Lak o' 'reedom o' o*eration o,served amongst the em*lo!ees.  %o additional Inentives other salar! and medial reim,rsements *rovided to the em*lo!ees. A *rereisite to a sales 5o, is the inentive reward whih it o''ers ,ease it hel*s drive the sales*erson to *t in more e''orts. A,sene o' this an ase lak o' 

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enthsiasm in the sales 'ore. Medial Reim,rsements. It+s a known 'at that medial reim,rsements are the most

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a,sed 'orm o' ,ene'its that a om*an ! o''ers. Lak o' motivation seen in em*lo!ees. A ke! harateristi o' ever! sess'l ,siness is the highl! motivated ,ehavior o' the sales 'ore o' the om*an!. A non-motivated sales

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'ore team old *rove to ,e almost 'atal 'or the 'irm6 A,sene o' *er'ormane reognition measres in the om*an!.

ased on the a,ove listed o,servations 'ond in the ase the *ro*osed soltions to ahieve the sales and *ro'it ota are mentioned ,elow. &(ease note7-$he sggestions are orres*onding to the 'indings that are given a,ove.

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$he 'irst thing that the Ashok shold onentrate

on

is

the

Geologial-

demogra*his-*s!hogra*his trio

o' 

the region. $he *eo*le 'rom the Eastern states

are

known

to

,e

reative

intelletal and smarter with a *en in hand than an a)e6 &ine Ashok has ,een newl! trans'erred to the East hene he mst 'irst himsel' get edated in detail a,ot the ,ehavioral as*ets o' the  *eo*le o' the region and also 'os on ondting training sessions 'or the sales 'ore ,ased on his learning+s. $his will hel* the sales 'ore target the stomers in a ,etter wa!. 

$he team assigned to Ashok is o' a deent si8e. 9e shold tili8e the team e''iientl! and tr! to e)*and the reah o' the *rodt to newer markets as this will hel* ta* the nta**ed setions o' the region and ,oost sales. -I' the 'inanes allow 'or then he mst also look to *romote the *rodt more via soial

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and *rint media. $he sales 'ore wastes ma5orit! o' its time travelling and hene this is ham*ering their   *rodtivit!. Ashok shold design the sales areas to  ,e overed intelligentl! and tr! to avoid 'ar o'' and heav! tra''i areas. I' not alread! *rovided he shold also give ,ikes 'or 'aster travelling o' the sales em*lo!ees. $hese set o' measres will hel*

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inrease the nm,er o' stomers engaged in a da!. $he sales 'ore is not ha**! with the amont o' atonom! on o*erations given ,! the management head to them. Ashok shold give more res*onsi,ilities to the sales managers with res*et to the *roess intriaies. #eekl! meeting shold ,e held disssing the :need 'or im*rovement+ in the 'irm and ask 'or individal sggestions 'or ,oosting revene 'rom them. $he em*lo!ees shold ,e enoraged to ,e *ro'essional entre*reners.

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&elling is a high *ressre and stress'l 5o,. It reires highl! sel'-driven and motivated  *eo*le. Ashok+s 'irm does not *rovide inentiv es along with salar! and other  e)*enses whih is a ma5or set-,ak to the  *er'ormane o' the team. Inentives are a  *rereisite to an! sess'l sales stint. Ashok shold work ot e''etive wa!s o'  introding inentives to the C$C. &ome sggestions inlde7 - Commission on ever! sale. - &*eial rewards on ahieving sales targets - Additional *a! 'or stomer retention (i' a** lia,le" In short Ashok shold talk to the higher management to introde inentive ,ased salar!  *akages 'or the sales *ersons. $his will de'initel! at as a *ro*eller to the *er'ormane o' the 'irm in terms o' the sales generated.

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Along with the addition o' inentives to the salar! *akage o' the sales em*lo!ees Ashok  shold also tr! to rede the ost ,eing inrred ,! the management on the medial reim,rsements on the em*lo!ees. ;es medial reim,rsements is a good wa! to inrease  5o, satis'ation ,t it is also one o' the most a,sed 'orms o' ,ene'its o''ered ,! the em*lo!er sine it is ver! onvenient 'or *eo*le to generate medial ,ills. $he sggestion is that Ashok shold rede the ost on medial reim,rsement and se that mone! 'or  other investment ativities mentioned earlier in the soltion like giving ,ikes inreasing inentives et.

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$here is a lak o' motivation in the em*lo!ees and this is a ase o' ma5or onern 'or the management. More em*lo!ee 'riendl! 9R *oliies shold ,e introded into the s!stem. &ome sggestions other than the sal inlde team  *arties a'ter ahievement o' goals good nm,er o'  holida!s travelling allowane and 5o, assrane.

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Reognition o' the hard work done ,! the em*lo!ees is e)tremel! rial 'or motivating them to ontine the good work. A,sene o' the same in the 'irm is a**alling6 $his shold ,e a *rime agenda in Ashok+s to-do list

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