Sales Management The Valley Winery Case Study Introduction Pat Waller was hired as a sales manager for the San Francisco region’s chain division for the Valley winery products and despite having very good sales a high turnover ratio of 100% seemed to be a major impediment in the future prospects of the company. Waller despite lamenting the problems he inherited had a major task ahead of the situation regarding a better planning of strategies which would help in organizing of the sales force activities at Valley Winery and its prospective operations in the region. The Company Valley Winery was founded in 1933 and has risen to be the largest domestic producer of wine in the US. The company has more than 40% of market share in the US and …show more content…
The motivation of the sales force is so low that they think that the district managers are no more that the baby sitters. No right schedule is being released by the management, there is no sales management planning in the organization. The leadership runs from the top. The employees just want to make sales without having concern about the company in that they work. Moreover, the uncertain night calls and long distance travels for the reps and frequent changes in the sales organizational structure has made problem even worse. Symptoms to the Problem High turnover rate • The turnover rate is high over the past several years. • is doubling every year and still the number of employees remain constant. • the working experience of an average employee is around 7 months which clearly tells that company is aggressively hiring the sales people. • And total of approximately 50 sales persons are replaced every year. Poor Hiring Mechanism • No aptitude tests • No background checks • Non-involvement of direct supervisors in recruitment • No coaching and lack of motivation (Leader runs from the top) Some of the other problems identified are as follow: • Poor Forecasting of number of sales person • No professional training provided • Lack of vision • Lack of career development • Poor Territory design • Lack of supervision of the
In 1844, the Empire Brewery was founded by Jacob Best and his sons in Milwaukee, WI. In 1860, Jacob’s son Phillip took over and renamed the brewery the Phillip Best Company. Phillip’s daughter, Maria married a steamship captain, Frederick Pabst. Captain Pabst sold his shipping interest and bought a partnership stake in the brewery. In 1872, Captain Pabst became President of the company. In 1889, he renamed the business the Pabst Brewing Company.
Valley Winery can correct current problems by implementing new practices. A place to begin change is the hiring process. By hiring based more on qualifications and less on physical attributes and youth, Valley Winery will be able to retain employees. Long term
If the cause of the decrease is because of product, the company should work with the implementation of new products or maybe establishing a new image for the product in sale decrease. If the product is still on demand and the decrease is because economy they should establish a new marketing for the offer of the product. This could be discount offers in product or quantity discounts for product bought. Discovering the reason why the product is decreasing in sales is an advantage for both the company and its sales rep. Making loans to sales rep on commissions that haven’t been earned could lead to greater losses for the company, turning the solution into a problem. Why? Simple, the problem could rely on sales reps that are not doing the job as they should. As the questions state, there are some sales rep that still making a good commission, the task must be to find why the other that have lower the sales. If the fact is that the company hasn’t evaluated commissions percentage for their sales rep in a long time to cover the high cost of living is simply, evaluate commissions based on cost of living and increase the percentage for the sales rep. Also they could work with encouraging the sales department with bonuses per sales goal; every sales rep that goes beyond its monthly sales goal will receive a bonus for this. This could encourage the sales rep and thus increase the sales because everyone wants the bonus.
The new sales force will also have to be able to; create new working relationships, develop new business, create a personal atmosphere for customers, and promote new business. After the sales force creates new business, the team must be able to retain these newly established customers. They will have to create small, obtainable, measurable goals for themselves in order to create and sustain new business. The salespeople will have a sales quota of thirty units per month and the commission will go up in increments of ten percent after
We will be recruiting current salespeople that have experience in this field as they know the market trend and the consumer expectation. Current salespeople tends to be more expertise in terms of persuading customer in buying our product as they have experience dealing with picky consumer better. This allows us to save time on training new salespeople as those current ones can learn faster. We will be posting jobs
In this paper Team C has discussed the issue of poor employee retention concluding in a high employee turnover rate. This is an issue that can be common among some companies and that is a great example of
Porter’s Five Forces was next used to determine the competitive environment. The Five Forces method is used to determine a company’s profit potential for a particular industry.
In 1858, a commercial vineyard was established which was also the first in the Napa Valley. In St. Helena, the commercial winery was established in Napa Valley by Charles Krug in 1861.
Patriot Brewery is a beer manufacturing plant located in Hagerstown, Maryland. We will be an importer of yeast, priming sugar and malt extract. We will be locally sourcing our hops from the west coast and our aluminum cans from Pennsylvania. We plan to sell our beer domestically to local retailers and distributors. Our core competencies include our procurement strategies, cost-effective manufacturing strategies. We will be taking advantage of the low unit costs of ingredients we need produced in the countries both foreign and domestic that produce them at greater economies of scale in order to sell our craft beer domestically for cheaper. We will do this by finding some of the biggest suppliers available for all our various materials. We specifically
By implementing advertisements on television to create awareness and interest in the company, New Belgium Brewing (NBB) can craft their image as a first impression to a new market. Looking back and reflecting on the previous television ad that ran for a short time long ago, some things would have to change, but the music, the bike, the beer, must remain the same. Creating a television ad should be a major project that deserves careful attention to detail to exhibit the values of the company through fun and folly, sophistication, and long lasting endurance.
The New Belgium Brewery Company divides the importance of profitability and social responsibility to become one of the largest “craft breweries” in the nation. The New Belgium Brewery re-discovered the art of creating an experience matched by too few in the craft beer industry. I, along with many others, have taken vacations to Denver, Colorado and always seem to find myself among the large groups of tourists that visit the famous Ft. Collins, New Belgium Brewery. The core values of the New Belgium Brewery are what drive the innovative streak that has quickly turned this uncommon brew into a household brand customers enjoy daily. In addition, the New Belgium Brewery considers their mission in the craft brew sector to be a decision of purpose
If I was the CEO of Terre Haute Brewing Company, I would try to gain more college age customers with having local college talent perform at night. The performers’ friends would come to support them and purchase our beer during the performance. THBC allows people to test their beer before making a decision, this limits the risk of ordering a drink someone won't enjoy.
to weaken with the JITD program, as the sales representatives lose their traditional areas of influence and
The SWOT-Analysis exhibits, that the occurring threats can all be shunned, when adapting the compensation structure as mentioned above (for a more detailed delineation see KPI-Analysis). The opportunity of having a greater pool of prospective recruits to choose from is positive. As this implies, if DBK manages to successfully employ plenty new sales representatives, it will have a good basis of jobholders to further grow its business, due to the fact that DBK’s attrition rate is very low. DBK needs to reduce its weakness, that most of their sales representatives have no experience in sales by make use of trainers (see KPI-Analysis), in order to share in the high potential of direct sales customers.
Sales forced played an important role in the company, since the company doesn’t use any magazine, newspaper, radio or other media advertising. Outdoor has 11 full time sales peoples in total, ranging from 23-67 years old, and each salesperson is required training to learn the product before they take over a territory. Each salesperson is responsible for their own territory, they