Scribd Logo
Upload

Welcome to Scribd!

  • 129 views

    Consolidated Drugs

    Uploaded by

    gaurav verma
    The document discusses issues with the sales division of Consolidated Drugs Inc. in Syracuse. The sales potential is only 20% due to outdated practices of older salesmen and imbalanced territories. The new sales manager, Mr. Trucks, believes reorganizing the territories could tap 40% of the potential market. Redrawing and reassigning territories more evenly based on store numbers, sales potential, and travel is recommended to improve profits. Each of the 12 salesmen should be given a territory with $780,000 sales potential and a 40% target to better utilize resources.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd

    Consolidated Drugs

    Uploaded by

    gaurav verma
    129 views6 pages
    The document discusses issues with the sales division of Consolidated Drugs Inc. in Syracuse. The sales potential is only 20% due to outdated practices of older salesmen and imbalanced territories. The new sales manager, Mr. Trucks, believes reorganizing the territories could tap 40% of the potential market. Redrawing and reassigning territories more evenly based on store numbers, sales potential, and travel is recommended to improve profits. Each of the 12 salesmen should be given a territory with $780,000 sales potential and a 40% target to better utilize resources.

    Original Description:

    consolidated drugs

    Original Title

    Consolidated drugs

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses issues with the sales division of Consolidated Drugs Inc. in Syracuse. The sales potential is only 20% due to outdated practices of older salesmen and imbalanced territories. The new sales manager, Mr. Trucks, believes reorganizing the territories could tap 40% of the potential market. Redrawing and reassigning territories more evenly based on store numbers, sales potential, and travel is recommended to improve profits. Each of the 12 salesmen should be given a territory with $780,000 sales potential and a 40% target to better utilize resources.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    129 views6 pages

    Consolidated Drugs

    Uploaded by

    gaurav verma
    The document discusses issues with the sales division of Consolidated Drugs Inc. in Syracuse. The sales potential is only 20% due to outdated practices of older salesmen and imbalanced territories. The new sales manager, Mr. Trucks, believes reorganizing the territories could tap 40% of the potential market. Redrawing and reassigning territories more evenly based on store numbers, sales potential, and travel is recommended to improve profits. Each of the 12 salesmen should be given a territory with $780,000 sales potential and a 40% target to better utilize resources.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 6

    Consolidated Drugs Inc.

    Problems:
    Syracuse division of Consolidated Drugs Inc. has shown some increase in sales over the past few years but that is because of only changing market conditions and is much less than what is expected. Some of the reasons as observed by Mr. Trucks are: The older salesmen do not use merchandising equipment, do not follow weekly sales plans, and show less interest Asa Bush and John Jameson have been earning the same commission for many years that is they have not increased their sales. While assigning trainees to territories in the old system of assigning, they were given a territory of uncontacted accounts or a territory where somebody has to be replaced and where the best accounts are given to older salesmen.

    Contd..

    New sales Manager Mr. Trucks think that by reorganizing the territories they can tap at least 40% of the potential market as compared to 20% now. The older salesman Asa Bush and John Jameson are not happy with the decision of reorganization while the younger salesman want this to be done.

    Should the territories be reorganized?


    Yes, the territories have to be redrawn and reassigned. Present salesmens territories have been formed without careful regard for the number of stores in those areas, the sales potential or the travelling involved. To make Syracuse capture more share and become more profitable, greater selling time should be dedicated to each store. The expense of delivering to an account is fixed and if higher proportion of business could be obtained from each account, Syracuse can make higher profits.

    Recommendations:
    Syracuse has tapped less than 40% of market potential in all territories except one handled by Pepper which is around 43% (exhibit 2). All areas where Syracuse has a potential to reach 40% should be mapped. Total potential sales is $9335000 (Exhibit 2) and there are 12 sales men (assuming that Asa bush leaves), each should be given $780000 sales to handle. A target of 40% should be set for all accounts. Currently the margins are around 2.5%. Increase in share from the current levels should be given a margin of 3% and special bonus on reaching 40%.

    Recommendations

    The territory allotted should be such that combined potential of the stores for each sales man should be $780000 and they are close by to minimize delivery expenses. Each sales person should be compelled to use sales plans designed by sales manager and make sure that merchandising equipment should be used.

    You might also like