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    Consolidated Drugs Inc - B4

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    Vaibhav Singh
    This document discusses the situation of Consolidated Drugs' Syracuse division, which has a lower market share than other divisions. It identifies several human resource and sales concerns, including low salesman morale, interpersonal conflicts between new and senior salesmen, and low market share in some districts. It provides profiles of individual salesmen and recommendations to address the concerns, including allowing the retirement of a senior salesman, gradually reorganizing sales territories, and assigning trainees to help salesmen. It advises the sales manager to make changes slowly while taking workers' confidence and connecting with employees.

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    Consolidated Drugs Inc - B4

    Uploaded by

    Vaibhav Singh
    514 views11 pages
    This document discusses the situation of Consolidated Drugs' Syracuse division, which has a lower market share than other divisions. It identifies several human resource and sales concerns, including low salesman morale, interpersonal conflicts between new and senior salesmen, and low market share in some districts. It provides profiles of individual salesmen and recommendations to address the concerns, including allowing the retirement of a senior salesman, gradually reorganizing sales territories, and assigning trainees to help salesmen. It advises the sales manager to make changes slowly while taking workers' confidence and connecting with employees.

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    Consolidated Drugs

    Original Title

    Consolidated Drugs Inc_B4

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    This document discusses the situation of Consolidated Drugs' Syracuse division, which has a lower market share than other divisions. It identifies several human resource and sales concerns, including low salesman morale, interpersonal conflicts between new and senior salesmen, and low market share in some districts. It provides profiles of individual salesmen and recommendations to address the concerns, including allowing the retirement of a senior salesman, gradually reorganizing sales territories, and assigning trainees to help salesmen. It advises the sales manager to make changes slowly while taking workers' confidence and connecting with employees.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    514 views11 pages

    Consolidated Drugs Inc - B4

    Uploaded by

    Vaibhav Singh
    This document discusses the situation of Consolidated Drugs' Syracuse division, which has a lower market share than other divisions. It identifies several human resource and sales concerns, including low salesman morale, interpersonal conflicts between new and senior salesmen, and low market share in some districts. It provides profiles of individual salesmen and recommendations to address the concerns, including allowing the retirement of a senior salesman, gradually reorganizing sales territories, and assigning trainees to help salesmen. It advises the sales manager to make changes slowly while taking workers' confidence and connecting with employees.

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    Download as PPTX, PDF, TXT or read online from Scribd
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    You are on page 1of 11

    GROUP B4

    CONSOLIDATED DRUGS INC.

    SITUATION ANALYSIS
    Syracuse divisions market share (20%) lower than other divisions

    Consolidated Drugs (HQ: NY)

    Only two local competitors


    one has only limited product range

    Syracuse Division

    Threefold plan for increasing profitability:


    Sales of larger average value per line of the order were encouraged - processing costs

    Sales of larger total value were encouraged as the delivery costs constant
    Sales of products carrying higher margin encouraged

    Divisional Manager: Burton

    Business Profitability :
    Net annual sales of the division had risen but difficult to ascertain competitive situation Martins view: Increase at the expense of competitors District Sales managers view: Division may have actually lost ground

    Sales Manager: Trucks

    Salesman (9)

    Trainees (4)

    MAJOR CONCERNS
    Human Resource concerns: Abrupt retirement of Senior salesman Mr. Bush Struggle between New and Old Salesforce
    Jameson blackmailing on the basis of close relationship with retailers and seniority Jim Peppers with other new salesmen hinting at quitting the company.

    Low Salesman morale owing to restructuring rumors

    Low motivation levels of senior Salesforce


    Not keen to adopt new merchandising techniques

    MAJOR CONCERNS
    Sales Concerns: Low market Share of Syracuse division as compared to other divisions Over dependence on sales person personal connections highly important Target to improve sales in the Syracuse regions Almost 50% of the accounts inactive in districts like Chenango, Tompkins, Tioga etc.

    Current Sales force Organization:


    Babbidge Chenango Tompkins Broome
    Tioga

    Trucks

    Bush Jefferson Lewis Oswego

    Carmack Onodonga Madison Cortland

    Dangler Onodonga

    Jameson St. Lawerenc e Jefferson Oswego

    Means Onodaga

    Pepper Onodaga

    Smith Herkimer Oneida

    Waller Cayuga Seneca Wayne

    SALESMAN PROFILE
    Salesman Age College Educate d
    Y 25 29 24 65 Y Y Y N N

    Assigned Accounts
    29 36 44 104 55 53

    Account Conversion %
    96.5 72.2 72.7 53.8 89.0 86.8

    Sales Penetration %
    42.4 21.5 24.3 11.9 27.3 33.9

    Comments

    Pepper Waller Carmack Smith Bush Jameson

    Very ambitious & aggressive Still on salary, bad territory Good use of merchandising Confused, high workload Very small sales growth, concern over pension Rushes calls, does not like Trucks, needs training on merchandise

    Dangler
    Babbidge Means

    43
    48 40

    N
    N N

    44
    90 48

    75.0
    43.3 60.4

    33.9
    9.7 24.2

    Personal touch, family friends with Burton


    Easy going, appreciates inputs Cribs, liked by customers

    4 trainees

    Eager to sell, unsure of readiness

    TRUCKS CONCERNS
    Sales territory restructuring:
    Interpersonal Conflicts Senior Salesman feel threatened by college Wonder boys Young salesman given less profitable accounts Burton unwilling to get involved Young Salesman feel they could do much better with old guys territories Motivated to use new merchandising techniques. Sell high margin products

    Initially territories allocated without thinking through. Senior Salesman credit themselves for developing the territories Salesman have been servicing the same areas for a long time. Salesman represent the company to customers New salesman feel that they get less profitable accounts

    RECOMMENDATIONS
    Retirement of Bush: Allow Bush to retire considering his age and long term planning Jameson has vast experience of 25 years. Considering 86% account conversion rate which is quite high, he could be given some of the Bushs accounts. Goodwill will boost morale of senior salesmen.

    Interpersonal conflicts:
    Older workforce unwilling to bring changes to territory allocation

    Younger lot wants more responsibilities despite some of them struggling with the current work load
    Reassign territories without a drastic shakeup as per the following plan:

    REORGANIZATION PLAN
    County Jefferson Current Salesman Bush New Salesman Jameson Rationale Already being partially covered by Jameson, excellent account conversion by Jameson in the county (100%)

    Oswego

    Bush/Jameson

    Pepper

    Geographic Proximity to Peppers county Onondaga, Jameson's presence is negligible and Pepper has excellent account conversion record
    Smith is unsure and overworked. Carmack makes good use of merchandising techniques and thus has good potential. They together can manage this large territory better.

    Oneida

    Smith

    Smith/Carmack

    Lewis

    Bush

    Smith

    Geographic Proximity, Oneida is now shared with Carmack and Smith can get some breathing space by taking this smaller county
    Geographic Proximity, Waller has good potential but still on salary owing to bad territory and unprofitable accounts. So a good chance for him to prove himself

    Tompkins

    Babbidge

    Waller

    TRAINEE ALLOTMENT
    All the four trainees have shown high potential and expected to be allocated eritorries on completion of training
    Salesman Trainee for Rationale
    Pepeer is to be assigned additional responsibilities and a trainee can take care of 2 by stores. Druggists all know Pepper Poor account conversion owing to heavy workload. Trainee can help improve penetration Potential sales is very high to be ignored and poor account conversion currently Liked by customers by poor account conversion possibly due to lower outreach. Trainee can help there

    Pepper

    Onondaga

    Smith

    Oneida

    Babbidge

    Broome

    Means

    Onondaga

    CHANGES IN TRUCKS WORKING STYLE


    Needs to develop an understanding of workers expectations Company has obligations towards senior employees given the number of years they have devoted in service Make use of their experience to increase sales in high-priority areas.

    Giving exposure to younger workforce to work on their own in smaller territories.

    Make radical changes slowly and after taking workers into confidence
    Discuss the benefits of reallocation rather than announcing it in the first talk itself

    Connect with the employees


    Need to connect well with the employees as J.K. martin did

    Understand the softer aspects of business


    New in the role of sales manager; personal relations important

    THANK YOU

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