You have been hired as the new sales manager for THE YUMMY ICE CREAM COMPANY The CEO, Mr. Jonathan Fitzjarrell (photo to the left), hired you because you portrait the qualities of a sales manager.
There are two steps that need to be completed in this case study. I attached the case study which is where you are going to pull the information from. I also attached the overview and rubric for steps one and two
Requirements: However long the rubric says
SALES MANAGEMENT CASE: SUMMER C 2023 Getting started . . . a few important notes 1. Please note that the company and products used in this case is not a real company. The names used in the case are not real and made up. 2. To assist you in your work refer to the canvas module titled: Sales Management Case Reference and Tools. 3. Live with the case the entire semester. Know it inside and out. 4. Before conducting the work for each step, read it thoroughly to make certain you perform all that is asked. ——————————————————————————————————————————————————————– You have been hired as the new sales manager for THE YUMMY ICE CREAM COMPANY The CEO, Mr. Jonathan Fitzjarrell (photo to the left), hired you because you portrait the qualities of a sales manager. With that comes high expectations. Mr. Fitz (he likes this shortened version of his name) is giving you 16 weeks, using a 7 Step Sales Management Process, to build a new sales organization that will meet or exceed the revenue growth targets of the company. However, you are inheriting issues: people, strategies, internal weaknesses, and other barriers that have been hindering revenue growth over the past three years. Your immediate focus will be to fix the sales organization and deliver significant revenue growth. You will be required to think deeply, make critical judgments and decisions and provide reasoning for your decisions. After completing the 7 step process, Mr. Fitz will approve your proposal for the new sales organization and how it will generate the revenue growth expected. In a recent meeting of all department leaders on August 21st, 2023 and at your first meeting with the company, Mr. Fitz made this statement to the sales organization regarding the start of the 2024 planning process: “The ice cream business continues to get more competitive. We face pricing, profit, and revenue challenges. We are small compared to companies like Nestle and Unilever. But we have an opportunity to grow, creating a larger revenue stream and doing it more profitably. We must be creative. I am asking the marketing team to create new products that excite customers. I am asking the supply chain team to find more efficient ways to ship our product to our customers. I am asking the sales team to find revenue growth with existing customers, new customers, new channels of distribution, and effective ways of promoting our product with our key customers. Bottom line, we need the sales team to plan growth of +$10million in 2024.” As the new sales manager, you need to know as much as possible about the current situation at THE YUMMY ICE CREAM COMPANY. The following information provides you with everything you will need to know about the current state of the company and sales organization. Dig in and gain a deep knowledge of what you are facing as the new sales manager. You will need this information to execute the 7 Step Sales Management Process.
THE YUMMY ICE CREAM COMPANY manufactures, markets, sells and distributes ice cream products in the Southeast, Mid-South, and Southwest United States. Its headquarters is located in Dallas, Texas. It has two factories, one in Tupelo, Mississippi and the other in Clovis, New Mexico. Note: YUMMY ICE CREAM is only sold and distributed in the area within the yellow borders. Under the YUMMY brand name, product package design and sizes is standard: Pints and Half Gallon. YUMMY competitors are abundant and are both national and regional in scope: In most of region Florida, Texas Georgia New Mexico, Arizona In entire region YUMMY also competes with private label brands, products made specific for major retailers (Examples): HEB in Texas Publix in Florida Albertson’s in NM and Arizona
The company competes in the packaged ice cream category. Sales Managers need to gain knowledge of the market to aid them in making the best strategic sales decisions. The following provides information on the packaged ice cream industry. Please review them prior to beginning the sales management process. Much of what you see here will influence your decisions. YUMMY 2023 Projected Revenue: $100million Ice Cream Industry Segmentation Ice cream is a sweetened frozen food typically eaten as a snack or dessert. The ice cream market is segmented based on product type, category, distribution channel, and geography. By product type, the market is segmented into impulse ice cream, take-home ice cream, and artisanal ice cream. By category, the market is segmented into dairy and non-dairy. By distribution channel, the market is segmented into on-trade and off-trade. Off-trade is further sub-segmented into supermarkets/hypermarkets, convenience stores, specialist stores, and other distribution channels. YUMMY is take home, dairy and supermarkets.
Ice Cream Production In 2021, ice cream makers in the U.S. churned out more than 1.3 billion gallons of ice cream. The ice cream industry has a $13.1 billion impact on the U.S. economy, supports 28,800 direct jobs, and generates $1.8 billion in direct wages, according to IDFA’s Dairy Delivers®. The majority of U.S. ice cream and frozen dessert manufacturers have been in business for more than 50 years and many are still family-owned businesses. July is the busiest month for ice cream production when nearly 3/5 of all ice cream is produced, followed by June and May. Ice Cream Marketing Families are the primary customer group for ice cream retailers. Ice cream marketing is primarily done on a local or regional level. While ice cream makers say they are seeing increased demand for non-dairy ice creams and plant-based ingredients, consumers rank these at the bottom of the list for most-consumed types of ice cream and frozen desserts. Premium and regular ice cream is 80% of the market, according to ice cream makers. Two-thirds of ice cream makers say they already use or plan to incorporate more sustainable packaging solutions. Ice Cream Sales The average American eats roughly 20 pounds of ice cream each year, or about 4 gallons. Fortune Business Insights estimates the global ice cream market will reach $97.85 billion in 2027, up from $71.52 billion in 2021—a 37% jump in less than a decade due to the world’s craving for ice cream. Consumption The average American consumes approximately 23 pounds of ice cream and related frozen desserts per year. Regular ice cream is the most popular category of frozen desserts. Source: International Dairy Foods Association Relevant Facts Ice cream market is projected to grow at a CAGR of 5.20% in forecast period, 2022-2029 Retailers report that premium ice cream is most popular with their consumers, while ice cream manufacturers report that regular ice cream, the kinds usually sold in supermarkets, are most popular with consumers. Time of year matters when it comes to ice cream. The summer months of June and July are the busiest months for ice cream production and transportation. Ice cream is big business. It contributes $39 billion to the U.S. economy and creates nearly 200,000 jobs across the country. Many ice cream companies are family-owned businesses and have been around for more than 50 years. Families are the primary consumers for ice cream retailers Ice cream marketing is usually done at a regional or local level Distributing Ice Cream Options Direct to Warehouse: Ice Cream manufacturers ship directly to a retailer warehouse if the retailer has the capability to warehouse it Direct Store Delivery: Ice Cream manufacturers ship product to individual stores either with their own trucks or contract ice cream distributors to deliver the product. This method is ideal when retailers cannot warehouse ice cream.
Below is a look at the current CORPORATE level situation at YUMMY ICE CREAM COMPANY Corporate Revenue 2021: $95 million 2022: $97 million 2023 Estimated: $100 million 2024 Targeted: $110 million 2025: $120 million 2026: $130 million The targeted growth of $10million (+10%) in 2024 is aggressive (industry projected growth is 5.2%) but a must to remain competitive. Mr. Fitz is willing to invest heavily in the sales organization enabling them to become a high performing and effective team. New strategies, support systems and maybe even new people, will be expected. Corporate Profit The company strives to reduce costs while increasing revenue. Mr. Fitz targets 18% net profit each year. How does sales play a role? Gain a $10million increase in revenue in 2024 less Mr. Fitz’s heavy investment in your organization, the company will reach the 18% target. YUMMY ICE CREAM COMPANY corporate structure Explanations for each function Sales Manager: Responsible for sales revenue growth and the management, development, and training of six sales representatives. Merchandising Manager: This team is responsible for visiting stores that sell our products. The team helps customers put our products on the shelves, rotate the product for freshness, hels build displays, and supports in-store promotions. They also build planograms. Planograms are diagrams or models that indicate the placement of retail products on shelves to maximize sales. Supply Chain Manager: Responsible for distribution of products from the warehouse to the customer. Because the product is sensitive to spoilage risks during shipping, the department manages a distribution network (3rd party) assisting the company in the careful, quality delivery of products. This department works closely with production. They depend on the most accurate forecast from the sales organization. Finance Manager: Responsible for all company finances including accounting processes (balance sheets and payment records) and budget planning, allocations, and management. Marketing Manager: Responsible for all marketing related activity to include promoting our brands using selected media, providing funds for the sales team to promote products with customers and building new products. HR Manager: Responsible for all human resource related activity (Hiring, onboarding, and termination), training, and keeping up with the development of employees. One of the HR managers is a legal expert. Production Manager: Responsible for the value chain. It begins with buying the raw materials from preferred vendors, warehousing and manufacturing, testing, and ends with staging (packing) the product for delivery to
our warehouse in Dothan, Alabama. They work closely with the supply chain. They depend on the most accurate forecast from the sales organization. IT / Data: Provides technical support for all departments. This includes enhancements and new technologies for efficiency and effective work. Also includes technical training. In addition, the department supports all functions with data relating to company goals and strategies as well as data within each department. For example, this department supplies the sales team revenue data, revenue lifts, sales by region. Current Strategies and Facts of selected functions within the organization Marketing Minimal advertising externally (Some radio and industry print publications) because of their strong belief of spending money directly with customers. This may be good for the sales team but without external marketing, what will draw people into your customer’s stores? The most frequent type of in store advertising executed is in store flyers and instant in store redeemable coupons. The marketing team does not support Buy 1 Get one free events. Budgets retail customers an annual promotional allowance of 5 percent (of previous year’s sales revenue) to advertise their product in store. If a customer’s sales revenue of our product last year was $10 million, we have the opportunity to spend $500,000 the next year with the customer to promote our products in their stores. Supply Chain We have distribution of our product in 90 percent of all supermarket stores in the southeastern US region. The distribution center is in Dothan, Alabama, next to the production facility. We use two types of vehicles to distribute our products; semis and floaters. Strategy is to deliver product on time to all customers (The goal is a minimum 90 percent on time delivery rate) Semi for larger customers and longer hauls Floaters for smaller customers and short hauls We use 3rd party DISTRIBUTORS to help use get product shipped to rural areas and customers who prefer what is called, “direct store delivery”. Instead of shipping our product to store warehouses, we may choose to use these distributors to ship to each store directly.NOTE: This is a critical element of YUMMY’s business. See how customers receive product by reviewing, The Sales Organization’s CUSTOMER overview, later in the case. Supply Chain Facts: + Product shipped to customer warehouses and customers use their own trucks to ship from their warehouses to their stores: Spoils rate 11%. This means that 11% of all product shipped to customer warehouses spoil. We pay half of what was spoiled.+ Product shipped using “direct store delivery”: Spoils rate 3%. We pay half of what was spoiled. Finance Meet sales promotion activity ROI at 15 percent ($ Promotional spend with customer / Incremental $ sales or lift from promotion: Example . . . $100,000/$1,500,000 = 15 percent) Each customer contributes at least 20 percent bottom line contribution margin. Example: Sales $10,000,000 Cost of Goods (Fixed at 50%) $ 5,000,000 Cost of Promoting with Customer $ 1,000,000 Cost of Distribution (Fixed at 20%) $2,000,000 Contribution Margin $2,000,000 (20 percent)
YUMMY ICE CREAM COMPANY SWOT Analysis A SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used to evaluate the company’s competitive position and to develop strategic planning. The SWOT analysis assesses internal and external factors, as well as current and future potential. Below is the current “corporate level” SWOT analysis for YUMMY ICE CREAM COMPANY. Later, you will be exposed to a specific Sales Organization SWOT analysis. Let’s take a look at the sales organization you are inheriting as the new sales manager. YUMMY ICE CREAM COMPANY sales organization structure Territory $ Revenue: $23 million $18 million $15 million $12 million $21 million $11 million Number of Customers: 10 10 7 8 10 6 Number of Ice Cream Distributors: 2 2 1 3 4 4 Growth Potential: High High Low Low Moderate Moderate Growth potential definition Growth potential is based on a three-level scale. High denotes a significant opportunity for revenue growth with existing customers (additional devices and longer contracts) as well as prospective untapped customers. These territories are labeled strategic and investment opportunities exist. Moderate means an opportunity for growth but not as substantial as those designated as high. These territories tend to be labeled maintenance meaning keep doing what we are currently doing. Low entails little or no growth opportunities. We call these territories non-strategic. Little or no investment is applicable.
High level Overview of the Sales Organization • All the territory sales representatives are based in their homes within their assigned territory. • Each territory sales representative manages customers within their territory. They are equipped with training, a budget to travel and money to spend with customers to promote our product. • There are no specialization roles within the current sales organization. • Virtual meetings are held monthly. Meetings review what is currently happening and why. • The focus is servicing and growing the existing customer base. Current Sales Strategies The current sales strategies are weak and do not address ways of improving efficiency and effectiveness and drive revenue. The CEO has asked you to ignore the current sales strategies. Instead, he is asking that you proceed with Steps 1 and 2 of the sales management process. Below is the current “Sales Organization” SWOT analysis for YUMMY ICE CREAM COMPANY. Sales Organization / Salesperson Performance Assessment The previous sales manager used a certain skill criterion to measure the performance of each sales representative. Below is the most recent performance assessment of the current sales team using the criteria:
Note that although some territory sales representatives are performing at higher levels than others do not call for criticism of lower performers and their overall score. Keep in mind, the skills listed above are the skills the previous manager was using. For your new organization and what you need to accomplish to grow revenue, newer and more relevant skills may be necessary for your team to be successful. https://www.templetonparker.com/single-post/The-10-Skills-Employees-in-Medical-Device-Sales-Need, https://www.zippia.com/medical-sales-representative-jobs/skills/ ———————————————————————————————————————————————————————- The Sales Organization’s CUSTOMER overview (Important information to know) Your customers think and talk a specific language your salespeople need to understand. Below are terms used by your retail customers when measuring business performance and the strategic decisions they must make: 1. Sales Revenue Sales revenue is the income received by a store from its sales of products in the store and in particular, by each department 2. Merchandising Merchandising is any practice which contributes to the sale of products to a retail consumer. At a retail in-store level, merchandising refers to displaying products that are for sale in a creative way that entices customers to purchase more items or products. 3. Shelf Space Shelf space is allocated to products. For example, a retail store may apportion 3 12 foot shelves for cereal. The intent is to make the most use out of the space, giving room to various products. 4. In Store Sales Promotions A sales promotion is an in-store event for a specified and limited period to increase awareness, generate interest and lead to a purchase. The intent of an in-store sales promotion is to gain incremental sales revenue. Examples of in store promotions are sampling, Buy One Get One free, 2 for $3, and in store coupons. 5. Profit Margin A product’s profit margin tells you how much the product sells for above the actual cost of the product itself. If a product costs the customer $1.00 and the retail price is $1.59, their profit margin is $.59 per unit or 37.1%. 6. Product Turns Product turns is how fast or slow a product sells off the shelf and through the front check out scanner at a retail store. For example, if 12 units were put on the shelf on Monday and all 12 sold through the checkout scanner by Sunday, we can say that product turns of that product are 12 turns per week. Your customers and buyers are seeking salespeople with the following skills: 1. Bring New Perspectives and Ideas If customers could diagnose their own problems and come up with workable solutions on their own, they would do so. The reason that they’re turning to you and your firm is that they’re stuck and need your help. Therefore, you must be able to bring something new to the table. 2. Be Willing to Collaborate Customers absolutely do NOT want you to sell them something, even something that’s wonderful. They want you to work with them to achieve a mutual goal, by being responsive to the customer’s concerns and ways of doing business. Ideally, customers want you to become integral to their success. 3. Have Confidence in Your Ability to Achieve Results Customers will not buy from you if you can’t persuade them that you, your firm, and your firms offerings will truly achieve the promised results. It is nearly impossible to persuade a customer to believe in these things unless you yourself believe in them. You must make your confidence contagious.
4. Listen, Really Listen, to the Customer When they’re describing themselves and their needs, customers sense immediately when somebody is just waiting for a break in the conversation to launch into a sales pitch. To really listen, you must suppress your own inner voice and forget your goals. It’s about the customer, not about you. 5. Understand ALL the Customer’s Needs It’s not enough to “connect the dots” between customer needs and your company’s offering. You must also connect with the individuals who will be affected by your offering and understand how buying from you will satisfy their personal needs, like career advancement and job security. 6. Help the Customer Avoid Potential Pitfalls Here’s where many sellers fall flat. Customers know that every business decision entails risk but they also want your help to minimize that risk. They want to know what could go wrong and what has gone wrong in similar situations, and what steps you’re taking to make sure these problems won’t recur. 7. Craft a Compelling Solution Solution selling is not dead. Customers want and expect you to have the basic selling skill of defining and proposing a workable solution. What’s different now though is that the ability to do this is the “price of entry” and not enough, by itself, to win in a competitive sales situation. 8. Communicate the Purchasing Process Customers hate it when sellers dance around issues like price, discounts, availability, total cost, add-on options, and so forth. They want you to be able to tell them, in plain and simple language, what’s involved in a purchase and how that purchase will take place. No surprises. No last-minute upsells. 9. Connect Personally with the Customer Ultimately, every selling situation involves making a connection between two individuals who like and trust each other. As a great sales guru once said: “All things being equal, most people would rather buy from somebody they like… and that’s true even when all things aren’t equal.” 10. Provide Value That’s Superior to Other Options And here, finally, at the No. 10 spot (below everything else) comes the price and how that price compares to similar offerings. Unless you can prove that buying from you is the right business decision for the customer, the customer can and should buy elsewhere. Customer Profile / Where we currently sell our product and where we get our sales revenue. Customers from left to right represent rank highest to lowest sales revenue customers for YUMMY ICE CREAM COMPANY In each territory. *To see a list of all supermarkets/other retailers in each state, go to http://supermarketpage.com/supermarketlist.php
YUMMY ICE CREAM COMPANY Top Five Highest Revenue Customers (These customers contribute 50% of the $100 million company revenue!) $14 million $11 million $10 million $8 million $7 million Can YUMMY ICE CREAM be sold in other channels of distribution besides supermarket? What do you think? Others? Convenience Stores Club Stores ———————————————————————————————————————————————————- The Retail Customer’s Voice The sales team needs to know how customers feel about the service provided by the company and the sales organization. YUMMY ICE CREAM COMPANY most recent customer OVERALL combined assessment results: What top management at our customers tell every company they do business with . . . “Salespeople need to be “consultants” bringing us problem solving solutions by using their internal expertise and resources. Customers want to defeat eroding margins and grow category sales leveraging the strength of brand equity, strong marketing campaigns and shopper satisfaction”. Distributors feedback working with YUMMY ICE CREAM COMPANY This
The Sales Management Process Your proposal to the CEO will follow the sales process within the course required book, “ Building A Winning Sales Force”. It is important that you take time to search the internet for additional and credible information about the industry. Each step will be explained with guidelines and hints to guide you through your decision making STEPS 1 AND 2: DIAGNOSE & BUILDING A STRATEGIC SALES PLAN (35 points total) The first step in the Sales Management process is to diagnose what is currently happening in the company. This step is critical for decision making in Step 2. It is important you deeply review the entire case. It is highly recommended that you print the case and as you review it, highlight and make notes. Review the entire case. The SWOT analysis for both the company and your sales organization will provide worthy information. However, you must go beyond the SWOT because the case provides essential information that will be of value to you. Step 1 Diagnosis As the new Sales Manager, you will be conducting a diagnosis of the current company and sales organization scenario. Your concern as a sales manager is “what is happening (or not happening) that may hold you back to grow sales revenue? What is the sales organization doing well now and continue doing that I can leverage to grow sales revenue? Part A (10 points): Based on your deep review of the company’s current situation, what sales related impacts*** concern you? Why? What are the consequences if it continues? An example of a concern of yours could be . . . “I am concerned about the lack of quality training because my sales team needs to be more influential with our customers and close longer term contracts. It does not appear that we are investing in training that is critical to today’s sales environment. If we do not train to current methods, we will fall behind our competition, risk credibility with our customers and see revenue continue to decrease”. ***A sales impact is a situation that although it may be an issue within another department of the company, it impacts sales. For example, if supply chain is not shipping product to customers on time, this is a supply chain issue that “impacts” sales. If this issue is not fixed, customers will begin to look to other suppliers for products! Thus, a loss of revenue.
Provide at least 15 concerns. Feel free to provide more than 15. The more you know, the better positioned you will be to complete Step 2 of the sales management process. Do not copy and paste content directly from the case. The CEO is looking for your own interpretation. Do not write your diagnosis in a paragraph format. Use numbers (1, 2, 3 . . .) and provide at least 4-5 clear, comprehensive sentences for each concern. Points will be deducted if you do not follow these instructions. Part B (5 points): The Company and Sales SWOT and other sections of the case identify current strengths. From what you learned about the company and sales organization in the case, what current strengths existing today can you build on and leverage to help drive revenue? Why? An example of a strength you can leverage and why could be . . . “Marketing currently provides high impact tools to help us make a greater impact with our customers. As a result, we have an opportunity to sell solutions instead of individual products”. Provide at least 5 strengths you can leverage to grow revenue. Feel free to provide more than 5. Do not copy and paste content directly from the case. The CEO is looking for your own interpretation. Do not write your diagnosis in a paragraph format. Use numbers (1, 2, 3 . . .) and provide at least 3 -5 clear, comprehensive sentences for each strength. Points will be deducted if you do not follow these instructions. For Parts A and B, use the exact format below: Step 1 Part A Concerns My Concerns Why it is a concern The consequences if it continues 1-15 Step 1 Part B Strengths to Leverage Strengths to Leverage How to Leverage 1-5 Step 2 Building a Strategic Sales Plan Once you have completed your diagnosis (Step 1), you will be constructing your strategic sales plan. You will review your concerns and identified strengths and translate them into strategies. Before you begin, review the content below that will help you build strategies that are clear, concise and impactful. 1. Strategies support corporate goals. They describe WHAT will be done, HOW it will be done, its benefit and what it will deliver (revenue contribution toward short term needs and long term benefits). Use the example below as your template to build each strategy. Make sure you note the WHAT, HOW, BENEFIT and what it will deliver in each strategy as shown in the example below: “We will build a new sales training program (WHAT) with specific emphasis on selling solutions to our customers. The training will include how to construct a compelling solution to customer problems, ask pertinent questions and close the sale. (HOW). The training will improve salesperson’s effectiveness resulting in closing longer term contracts. (BENEFIT). This strategy will contribute at least $2 million in increased sales revenue (what it will deliver).” 2. Strategies could be built to solve other issues. We will conduct more meetings (WHAT) within our sales organization and invite other functions like marketing and supply chain where we see the need. Meetings will be conducted monthly at our Atlanta headquarters with an agenda to include (1) current state of the business (2) high priority issues and (3) solutions to the issues. At each meeting, we will hold one valuable skill training module. The meeting will end in a list of actions we will take to solve an issue. (HOW). The meetings will improve salesperson’s effectiveness and efficiencies resulting resolving issues quicker and seeing positive results faster. (BENEFIT). This strategy will contribute at least $550,000 in increased sales revenue (what it will deliver).”
The example above includes the need for more training (At each meeting, we will hold one valuable skill training module), better communication and engagement with other functions of the organization (and invite other functions like marketing and supply chain where we see the need) and quicker resolutions so that we see immediate sales revenue benefits. 3. Sales strategies need to be “sales” strategies. As a sales manager, there are concerns you have no control over because it is the responsibility of another function within the organization such as marketing or supply chain. As a sales manager, you cannot create a strategy such as “to introduce a new advertising campaign that creates more demand and trial of our product”. This is a marketing role. However, as a concern of yours, for example, a lack of impactful advertising to convince customers like Publix to put your products in their stores, it holds you back from growing revenue. Again, as a sales manager you cannot build this as your sales strategy, however, you could build a strategy that suggests sales having significant impact in building a stronger ad campaign. The strategy might go something like this: “We will build a process with specific emphasis to an impactful social media campaign with the marketing team. The campaign will include how to construct a compelling message not only to consumers, to our customers as well. The message will position us to create awareness and demand with potential shoppers and credibility with and support from our customers. The process will include tasks identified collectively and completed by both the marketing and sales teams. This strategy will contribute at least $2 million in increased sales revenue”. Even though this initiative is deemed a marketing one, you can decide to make it one of your sales strategies because it needs sales input to provide insight and decision making from a customer’s point of view. After all, it is your sales team that works closest to customers like Walmart and Publix. Having customer input on how to define a strong ad campaign is priceless! 4. Strategies contribute to resolving current issues (inefficiencies and ineffective practices) but have long term benefits For example, an immediate need could be to expand our distribution base beyond just supermarkets. This may fix a short term sales revenue need because selling product beyond supermarkets such as in convenient stores and club stores, it would provide new and quick sales revenue for us. The long term benefit is, as these new channels of distribution and customers mature, we can invest in them and grow longer term sales revenue growth. ARE YOU READY? Building a Strategic Sales Plan is the most important step in the sales management process because the decisions you make in Steps 3 through 7 will always link back to the plan. You will see why as we progress through the process. The strategic sales plan will guide your sales team toward revenue growth. SPEND TIME ON THIS ASSIGNMENT! Part A (15 points): Using your diagnosis and strengths to leverage (in Step 1), build at least 10 comprehensive sales strategies. (Reference Chapter 2, begin at page 53 in the book and your Step 1 document to assist your thinking and decision making). Each sales strategies will be built based on the CEO’s mandate to grow revenue short and long term. Your clear, actionable sales strategies become your STRATEGIC SALES PLAN. KEEP A COPY OF YOUR PLAN AVAILABLE. YOU WILL NEED TO REFERENCE IT TO MAKE DECISIONS IN STEPS 3-7.
Part B (5 points): Once you have constructed your strategic sales plan, prioritize (priority rank) your top 5 strategies. When you do so, consider using the information below provided by Stratechi (2022) to help you decide: • Prioritizing what customers, geographies, and markets to go after • Prioritizing the needs of customers to address • Prioritizing the innovation and ways to serve customers better • Prioritizing what is important to focus on • Prioritizing a company’s resources, capital, and investments • Prioritizing actions, people’s time and resources to achieve the goals • People prioritizing what they do every single day For Parts A and B, use the exact format (including the headings) below: Step 2 Part A Strategic Sales Plan Strategies 1-10 Step 2 Part B Strategic Priorities Priority Rank Why? 1-5
NOTE: Beginning at Step 3 and through Step 7, make certain you have a copy of your Strategic Sales Plan available for reference STEPS 3 AND 4: CREATE A STRUCTURE AND ROLES (DEFINER DRIVERS) AND SKILL AND CAPABILITIES (SHAPER DRIVERS) (30 points total) Step 3 Create a Structure and Roles In Step 1 you conducted a diagnosis of what is currently happening within the entire organization and specifically, within the sales organization you inherited as the new sales manager. In Step 2 you build a strategic sales plan that will fuel the revenue growth the CEO expects to accomplish. Step 3 is your DEFINER DRIVERS. It defines your organization with an organizational structure to support your strategies. Your current sales organization structure is in the case. Please review it before making decisions in Step 3. Part A (3 points): Before building your organizational structure, determine the areas of specialization (e.g. sales promotion manager) you will need within your structure to support the sales organization and the strategic sales plan you built in STEP 2. The specialization positions need to “support” your sales representatives improved efficiency and effectiveness. They need to compliment the sales effectiveness drivers. You are required to hire at least three (3) specialization positions to become part of your direct sales organization. They need to report to you. The specialization roles need to link back to your strategic sales plan. A list of possible specialization positions to be decided is located in the canvas module titled: Sales Management Case Reference and Tools and under the file, “Possible Specialization Positions for the Sales Organization”. Choose at least 3 and explain in 4-5 clear, detailed sentences why you need these positions. Do not discuss their specific role and responsibility yet. You will have the opportunity to do so in Step 4 Part D. Use the format below. Specialization Positions Adding Why do we need these positions? Part B (2 points): In addition to adding at least three specialization roles to your direct sales organization (Part A), decide how many additional sales reps you will need to add to support your strategic sales plan. Assuming the strategic sales plan you built in Step 2 focus on what needs to be done in 2023 and how it sets the stage for future growth, the CEO is willing to invest now additional sales reps if you feel it is necessary to help attain the desired revenue growth. Add at least 2 additional sales reps however, add more if you feel necessary. Where will you place each new sales reps? Why? Justify your decisions with compelling reasoning in 4-5 sentences. Part C (10 points): Build a new sales organization structure. Start with the existing sales structure. Use the following case references to assist you in making decisions. Provide a graphic (org chart) look similar to the above. You can use PowerPoint, Word, or neatly hand draw it. For your new specialization positions, identify the role (e.g. Sales Promotion Expert) and for new sales reps identify the region/territory they will work. There is no need to fill in a name for the new positions yet. You will have an opportunity to do so in Step 4. Your new structure needs to be detailed and easy to read. Make sure you show reporting structures. For example, you may want to have the specialization roles report to you directly or create a specialization lead role with each reporting into that person and that person reporting into you. Refer to Chapter 5 and Common Sales Structures to guide your considerations and decisions. Below the graphic structure you provided, summarize in at least 5 detailed bullet form sentences the changes you made from the previous organizational structured.
Step 4 Skill and Capabilities Your sales strategies are in place and you have built a new sales organization. How do you know you have the right people in place to drive the strategic plan? Do they have the right skills to perform efficiently and effectively in their work? If you are proposing additional positions in your structure, who will you hire for those positions? SHAPER DRIVERS profile your organization. You need highly talented people with specific skills in all of your positions. Your current sales reps may have the necessary skills to perform at the highest level. They may not. In this step, you will be making people decisions. Part A (5 points): Determine the skills your salespeople need to successfully implement the new strategies and drive revenue. A skill is something you learn to do and apply it to a work task. The case provides you current skills the previous sales manager thought most critical to the success of the organization. Perhaps some of them are necessary moving forward and others may be needed. However, the CEO believes that the current skills required are outdated and not the skills salespeople need to be successful in driving the desired revenue growth of the company. The CEO is asking you to identify a minimum of 10 skills that are essential to the success of the sales organization moving forward. Feel free to go beyond 10 if you deem necessary. If you feel any of the current skills are essential, feel free to keep them however at least 5 of the 10 skills you will require must be new. Describe each essential skill in a well-structured. Consider using the internet to research essential skills for sales reps within the industry. Follow the format below. Points will be deducted if you do not follow the instructions. Essential Skill Current or New? Skill Description / Why Essential? Part B (5 points): Go to the Sales Organization / Salesperson Performance Assessment in the case. Review each of your sales rep’s most recent performance assessment. After reviewing, you need to decide whether or not they fit into your new sales organization based on the skills you identified in Part A above and/or the current skills they possess. You need to make difficult decisions; keep or terminate sales reps. Of your current sales reps, who will you keep and who will you terminate? You are required to terminate at least two sales reps. You may terminate more than two if you feel they do not fit your new sales organization. Provide reasons why you are keeping the current sales reps and why you decided to terminate others. Keep in mind, your current sales rep scores in the most recent performance assessment may not be the best way to make your decision. Be very clear with 4-5 detailed sentences for each rep explaining why you made the decisions you did. Use the format below: Sales Reps Kept Why Sales Reps Terminated Why Part C (5 points): You must fill the vacant sales rep positions (through termination) and added sales reps for your new sales organization structure. It is essential you recruit for the talent you need to be successful. For your recruiting efforts, Human Resources has provided you a number of resumes to review. See Canvas Module Titled: Sales Management Case Reference and Tools and the file Resumes to fill sales rep positions. Review each resume and determine who would best fit the your new sales organization. Provide 4-5 clear, detailed sentences explaining reasons why you hired each sales rep. Names used with the resumes are fictitious. There is no association with name and resume content. Review Chapter 7. It exposes you to an array of methods and techniques used for finding the right talent. Use the format below: Sales Reps Hired Why
STEPS 5 AND 6: INFORMATION/CRM (ENLIGHTENING DRIVERS and INCENTIVE PLANS / MOTIVATION (EXCITER DRIVERS) (25 points total) Step 5 Information / CRM Using information technology is vital to enhance sales effectiveness. It provides insight, helps for planning and measuring progress and results. Sales managers must decide what to measure (sales metrics) and to identify and build tools to help them manage and control the business. ENLIGHTNING DRIVERS inform your organization with information and tools to help them communicate to and manage customers and execute the strategic sales plan. Part A (10 points): Chapter 11 discusses ways of creating dashboards and reports. You do not need to build an actual dashboard. However, decide what you want to measure using sales metrics. They are also referred to as KPI’s. Refer to Chapter 11 and Common Ratios Used/Common Metrics found in the canvas module titled: Sales Management Case Reference and Tools and the file, “Common Ratios Common Metrics” to assist you in making your decisions. Choose at least 5 metrics (from the provided file) and 5 (from an outside internet source) you will use to measure the progress of your strategic sales plan implementation and what it measures. Referring to the strategic sales plan you built in Step 2, identify the specific strategy that links to the chosen metric. Copy and paste the appropriate strategy from your plan in Step 2 in the third column in to the format below*. Metric Selected What does it measure? *Strategy the metric supports (from your strategic plan/Step 2 Part B (5 points): Sales managers need to choose a technology; a system that is best fit for the sales organization moving forward. CRM stands for customer relationship management. It is a category of integrated, data-driven software solutions that improve how you interact and do business with your customers. CRM systems help you manage and maintain customer relationships, track sales leads, marketing, pipeline, and deliver actionable data. PC Magazine has published The Best CRM Software for 2022 and beyond and identified below: Source: PC Magazine Research the CRM software options above using the internet. Feel free to search for other CRM solutions that are not in the list above. Decide on at least three CRM software systems that would best fit to support your sales reps, customers and strategic sales plan. For example, if seeking new customers is a vital strategy to grow current and future sales revenue, find a CRM technology that enables and supports prospecting for new accounts. For each of the CRM systems you chose, list at least 5 features and 5 benefits of the system. The feature must match the benefit. A feature is an attribute or functionality of your product or service. A benefit is how a product or service can improve or add value to a customer’s life. Benefits answer the question: “What will this product or service do for me?” Be VERY clear using at least 3-4 descriptive sentences for each feature and benefit. Use the format below. Points will be deducted if you do not follow these instructions. CRM Technology Chosen Feature Benefit
Step 6 Incentive Plans / Motivation Incentive compensation has a high impact on sales and comes with a high cost. Plans must be carefully constructed to excite the sales organization. The plan must be fair and pay for performance. EXCITER DRIVERS motivate sales reps to work hard, execute sales strategies, and achieve challenging goals. Part A (5 points): Decide on the salary-incentive mix for your sales organization and explain why it is the best option. The incentive plan is typically a percentage of the base salary. How does your mix compare to the industry? Go online and research incentive pay/bonus levels in the industry. Refer to pages 262 – 267 in the course book to learn more about salary-incentive mix to determine the right one for your sales organization. Provide at least a 150 word explanation of your decision why you chose the specific mix and how you feel the sales organization will benefit from the plan. Part B (5 points): Sales Managers need to build incentive plans that drive profitable, revenue growth. Chapter 12 in the course book explains incentive plans. Read through this chapter and build an incentive plan for your organization. Your incentive plan MUST encourage activity that aligns to your sales strategies (page 252). In addition, your incentive plan needs a scheme. Identify one. Explain why you feel this is an effective scheme. A cash incentive payout or gift card offering is a sales incentive scheme. There is no required format for Part B. Be creative. Creativity is NOT written paragraphs. Creativity is building a visual with content; something sales reps can look at that is simple, easy to understand and motivating them to perform. Many use a PowerPoint slide to outline the plan. It is something easy to understand and disperse freely among your organization without causing confusion or misunderstanding. When building your incentive plan, use the following guidelines to guide your incentive plan decisions: 1. Incentive plans reward performance; usually over and above what is typically expected. 2. Don’t reward something that is expected. For example, if a salesperson’s sales quota is $1,000,000 and they reach $1,000,000, this is expected. If they exceed the quota, this is something you consider rewarding. 3. Determine exactly what you are targeting and measuring. Incentive plans need measurements so that you and the salespeople can track and monitor progress against the incentive scheme. 4. Be very specific 5. Make it easily measurable 6. Make it transparent to allow for apportioning accountability 7. Make the incentive plan fair (given realistic targets) 8. Make the incentive timely. Monthly, Quarterly, Annually? Your score will be based on detail, creativity and reference to Chapter 12 and the content above.
STEP 7: PERFORMANCE MANAGEMENT (CONTROLLER DRIVERS) (10 points total) Step 7 Performance Control Chapter 9 discusses how to build a winning sales culture. Refer to Chapter 9 and the section regarding mission statements and values. This step is asking you to create a culture that works for your sales organization. To create a culture, you need a mission statement and a set of values to follow. In addition, leadership drives the enablement of the mission and values of the sales organization. Key leadership behaviors will also improve sales force performance. To manage performance, a culture and behaviors need to be in place. These influences are the CONTROLLER DRIVERS needed by sales managers. Part A (3 points): Construct a clear, understood mission statement for your sales organization. Speak to your sales organization’s core purpose. Use simple language. Talk about your unique strengths. Forget about revenue. Stay actionable and agile. See an example below: Mission Statement “At ABC Company, we have made it our mission to support customer needs through a multitude of high-quality services and state-of-the-art products that come together seamlessly to increase efficiency and effectiveness of our organization”. Once you have completed the mission statement, identify at least five strong and compelling values you want your sales organization to follow every day. Values need to be written in clear sentences. The mission and values need to link to your strategic intentions. See examples of value statements below: “We assist our clients in the communication industry to reduce personnel costs. We do this by offering screening and assessment services, hiring systems, and retention programs.” “We work closely and collaboratively with all departments of our organization to prepare and deliver impactful selling solutions to our customers”. Your mission statement and values will become the foundation of your new culture! Part B (2 points): Leadership behavior can improve sales force performance. With the sales management process nearly completed and ready to be shared with the CEO, you need to determine your leadership style moving forward that will motivate the sales organization to perform. Refer to Chapter 9 and in the canvas module titled: Sales Management Case Reference and Tools the file, “10 Leadership Styles You Should Know” to assist you in making your decisions. Review the styles in the article and choose those you will adopt as the leader of the sales organization. Consider choosing more than one because certain situations may require you to implement a style right for the scenario. Explain in no less than 100 words why the styles you chose are right for the organization and the new culture you are determined to promote. Part C (3 points): Performance management is the control system of the sales organization. Sales managers have measurements in place (Step 5, Part A) to monitor performance. Sales managers need to evaluate salespeople against what is being measured. Chapter 14 discussed the role of performance management in the sales system. It is simply how salespeople perform activities leading to the desired results. The role of the sales manager is to provide regular feedback, coaching and guidance. It is part of the culture you intend to establish. Develop a performance management model for your sales organization. Sales Manager’s use the model to monitor progress of each salesperson performance and provides a reference for evaluation, coaching and guidance. Use the format below:
PERFORMANCE MANAGEMENT MODEL You can find the xls form above in the canvas module titled; Sales Management Case Reference and Tools and the file, “Performance Management Model Worksheet”. Using the format and tool above, list each sales rep in your new sales organization under the salesperson’s name in column 1. You do not have to list specialization people you added to the sales organization. Provide one activity that you believe the rep will best perform in (under Activities to Perform column 2). To make an activity decision, refer back to the resumes of those you hired and the skills of those reps you kept in your organization. In the third column, decide what you will measure linked to the activity identified. In column 4, identify the skill needed to effectively execute the activity. Part D (2 points): Sales Managers learn how to implement change. Sales managers need to identify the type of change the sales organization is going through and build a change plan. To complete Part E, review each change type discussed in class (Dealing with Change) and the list found in the canvas module titled: Sales Management Case Reference and Tools and the file, “Dealing with Change”. Based on how you have built your new sales organization, what change type are you implementing? Choose from one on the change type list. In 5 – 7 sentences explain why you believe your new sales organization will be going through the identified change type.
Rubric for Step 1
The instructor thoroughly reviews all submissions carefully and provides a score based on quality, effort and depth of work. Assessments of work are subjective and will fall into a point category. Comments may be written by the instructor. If a student has questions about their work, it is required for them to submit a request via email to discuss no later than 48 hours after the score has been submitted on canvas. Once a request is submitted, the instructor and student will agree to a day and time to discuss.
10 points More than 15 concerns (18+) were identified. They were extremely well written and directly related to the case. They provide a strong base for Step 2. The concerns were all sales related.
9 points 15 concerns were identified. They were well written and directly related to the case. The concerns were all sales related.
8 points 15 concerns were identified. They were reasonably written with some needing better clarity. Most were related to the case. The concerns were sales related.
7 points Less than 15 concerns were identified. Some were not written well and were difficult to understand. Some were not related to the case. Some of the concerns were not sales related.
6 points Significantly less than 15 concerns were identified. Most were written poorly and were difficult to understand. Most were not related to the case. Most of the concerns were not sales related.
0-5 points Unacceptable work. A score will be provided with an explanation.
Note: Do not copy and paste content directly from the case. Do not write in paragraph format. Use numbers (1, 2, 3 . . .) and provide at least 4-5 clear, comprehensive sentences for each concern. Points will be deducted if you do not follow these instructions.
5 points More than 5 strengths (7+) to leverage to grow the business were identified. They were extremely well written and directly related to the case. They provide a strong base for Step 2.
4.5 points 5 strengths to leverage to grow the business were identified. They were well written and directly related to the case.
4 points 5 strengths to leverage to grow the business were identified. They were reasonably written with some needing better clarity. They were directly related to the case.
3.5 points Less than 5 strengths were identified. Some were not written well and were difficult to understand. Some were not related to the case.
3 points Significantly less than 5 strengths were identified. Most were written poorly and were difficult to understand. Most were not related to the case.
Note: Do not copy and paste content directly from the case. Do not write in paragraph format. Use numbers (1, 2, 3 . . .) and provide at least 3-5 clear, comprehensive sentences for each concern. Points will be deducted if you do not follow these instructions.
Rubric for Step 2
The instructor thoroughly reviews all submissions carefully and provides a score based on quality, effort
and depth of work. Assessments of work are subjective and will fall into a point category. Comments
may be written by the instructor. If a student has questions about their work, it is required for them to
submit a request via email to discuss no later than 48 hours after the score has been submitted on
canvas. Once a request is submitted, the instructor and student will agree to a day and time to discuss.
Scoring Example when a student receives a .5 in their score:
13 points 10 comprehensive strategies (13+) are satisfactorily written with some needing better
clarity but include WHAT, HOW, the BENEFIT and what it will DELIVER. Each strategy is
sales related. If all is compliant except for one or more strategies are NOT sales related, the student
will receive 12.5 points versus 13 points possible.
15 points More than 10 comprehensive strategies (13+) are written extremely well and include
WHAT, HOW, the BENEFIT and what it will DELIVER. Each strategy is sales related.
14 points 10 comprehensive strategies are written well and include WHAT, HOW, the BENEFIT and what it will DELIVER. Each strategy is sales related.
13 points 10 comprehensive strategies (13+) are satisfactorily written with some needing better
clarity but include WHAT, HOW, the BENEFIT and what it will DELIVER. Each strategy is
12 points 10 comprehensive strategies (13+) are satisfactorily written with some needing better
clarity and some or no clear evidence that each includes WHAT, HOW, the BENEFIT and
what it will DELIVER. Some strategies may not be sales related.
11 points Less than 10 comprehensive strategies have been provided and are weakly written with
minimal evidence including WHAT, HOW, the BENEFIT and what it will DELIVER. Many
strategies may not be sales related.
10 points Significantly less than 10 comprehensive strategies have been provided and are poorly
written with little or no evidence including WHAT, HOW, the BENEFIT and what it will
DELIVER. Many strategies may not be sales related.
0-9 points Unacceptable work. A score will be provided with an explanation.
5 points Ranked in priority with a clear and comprehensive explanation of why.
4 points Ranked in priority with a reasonable explanation of why.
3 points Ranked in priority with a weak explanation of why.
0 points If an explanation of why is NOT provided.
Note: Do not write in paragraph format. Use numbers (1, 2, 3 . . .) Points will be deducted if you do not
follow these instructions.
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