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    Stepsmart Fitness: Submitted By: Group 9

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    Aishwarya Solanki
    This document analyzes the sales performance of various salespeople at Stepsmart Fitness. It finds that Concetta and Avery have the largest differences between expected sales and actual sales, highest expenses, and largest differences between potential and active accounts. Foster's performance has also declined. The document evaluates alternatives like providing guidance, terminating underperformers, and hiring new people. It recommends terminating Concetta and Avery, keeping Foster on probation, training existing employees, realigning territories, and hiring new employees.

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    Stepsmart Fitness: Submitted By: Group 9

    Uploaded by

    Aishwarya Solanki
    891 views7 pages
    This document analyzes the sales performance of various salespeople at Stepsmart Fitness. It finds that Concetta and Avery have the largest differences between expected sales and actual sales, highest expenses, and largest differences between potential and active accounts. Foster's performance has also declined. The document evaluates alternatives like providing guidance, terminating underperformers, and hiring new people. It recommends terminating Concetta and Avery, keeping Foster on probation, training existing employees, realigning territories, and hiring new employees.

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    STEPSMART FITNESS_Group9

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    This document analyzes the sales performance of various salespeople at Stepsmart Fitness. It finds that Concetta and Avery have the largest differences between expected sales and actual sales, highest expenses, and largest differences between potential and active accounts. Foster's performance has also declined. The document evaluates alternatives like providing guidance, terminating underperformers, and hiring new people. It recommends terminating Concetta and Avery, keeping Foster on probation, training existing employees, realigning territories, and hiring new employees.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    891 views7 pages

    Stepsmart Fitness: Submitted By: Group 9

    Uploaded by

    Aishwarya Solanki
    This document analyzes the sales performance of various salespeople at Stepsmart Fitness. It finds that Concetta and Avery have the largest differences between expected sales and actual sales, highest expenses, and largest differences between potential and active accounts. Foster's performance has also declined. The document evaluates alternatives like providing guidance, terminating underperformers, and hiring new people. It recommends terminating Concetta and Avery, keeping Foster on probation, training existing employees, realigning territories, and hiring new employees.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 7

    STEPSMART FITNESS

    SUBMITTED BY: GROUP 9


    5C’s Background Analysis
    COMPANY CUSTOMER COLLABORATORS CONTEXT

    ● Manufacturer of ● Private clubs ● Big box retailers ● US health club


    exercise ● Home consumers ● Sporting equipment industry was
    ● Universities retail chains highly fragmented
    equipments
    ● Training facilities ● Online retailers ● No established
    ● 18% share ● Residential market leader
    ● Products:: Retail property managers
    (65%), Private and ● Fee-based health
    Institutional clubs
    (7.7%),
    Commercial
    Products (29.3%)
    ● Product Line:
    Cardio, Strength,
    Technology, small
    exercise
    equipment
    Problem Statement
    ● The BPI indicate that the purchasing power of the district was 7.49% but Stepsmart
    was able to generate only 5.14% of the sales in 2011
    ● If Cooper succeeds in achieving the targeted revenues, then he’ll receive a bonus of
    2% of the sales, but if he fails to achieve the target then it may lead to a loss of 50%
    of salesforce

    How to increase the sales and achieve the target of improving the sales by
    7.49%? Would termination result in achieving the goals?
    Alternatives
    ● Probation or providing guidance to its employees without terminating anybody
    ● Terminating Foster
    ● Terminate Concetta and Avery
    ● Hire New Salesperson
    Evaluation
    Commercial Estimated
    # of Buying Regional
    Potential 2011 Active Power Population Commission Total Expected 2011 Calls
    Salesperson Accts Accounts* Difference Index (000) Land Area Salary s Compensation Expenses 2011 Sales Sales Difference per year

    Ellis 421 215 206 1.27 3,720 1,700 $ 93,753 $ 76,707 $ 1,70,460 $ 14,800 $ 19,91,493 2343150 351657 830
    Barrow 515 275 240 1.80 2,995 5,543 $ 57,630 $ 55,370 $ 1,13,000 $ 23,900 $ 17,06,994 3321000 1614006 1,370
    Hammond 250 230 20 0.8 4,703 200 $ 54,808 $ 50,592 $ 1,05,400 $ 17,918 $ 15,17,328 1476000 -41328 1,400
    Foster 475 230 245 0.97 1,320 9,350 $ 48,807 $ 46,893 $ 95,700 $ 27,753 $ 14,22,495 1789650 367155 902
    Gibbons 450 140 310 0.63 1,662 2,817 $ 48,600 $ 32,400 $ 81,000 $ 10,500 $ 13,27,662 1162350 -165312 955
    Concetta 600 210 390 1.08 1,217 12,212 $ 32,960 $ 31,040 $ 64,000 $ 31,700 $ 8,53,497 1992600 1139103 820
    Avery 560 304 256 0.94 599 35,385 $ 30,274 $ 27,946 $ 58,220 $ 29,400 $ 6,63,831 1734300 1070469 1,158
    Total 3,271 1,604 7.49 16,216 67,207 $ 3,66,832 $ 3,20,948 $ 6,87,780 $ 1,55,971 $ 94,83,300 13819050 7,435

    On analysing the number of active accounts, number of phone calls made per year, the difference between the expected sales and sales
    made, the expenses done and the area covered, we see that,
    ● Concetta and Avery have performed very poorly, they have maximum difference between the expected sales and the sales made,
    the maximum expenses, maximum difference in the active accounts and the potential accounts, even after doing a hefty
    expenditure.
    ● Foster’ s performance is also on the same line after Avery and Concetta
    Evaluation of Alternatives
    Alternatives Pros Cons
    Guidance to employees ● Increase efficiency of employees ● Cost of training the employees
    ● Increased productivity

    Terminating Foster ● Due to his declining sales performance, he can ● He is an above average
    be kept on probation or be terminated performer
    ● Sales performance decline was
    due to personal problem
    ● He can be guided to achieve the
    set target

    Terminating Concetta and ● They are the low performers compared to others ● Avery has a strong rapport with
    Avery ● Avery doesn't focus on innovative ideas to grow established clients
    business ● Concetta know the product and
    ● Some clients were dissatisfied with Concetta easily communicate with the
    clients

    Hiring New People ● It will improve the quality of sales force and help ● It will increase the cost of
    in improving the target at a better pace coaching and training the hired
    people
    Recommendations
    As Cooper should get the “ the right people on the bus, the wrong people off the bus and the right people in the
    right seats”
    ● Terminate Concetta and Avery, keep Foster on probabtion
    ● Duties of the sales team should be rearranged according to their performance
    ● They should be trained in the areas they lack
    ● Changes should be made in compensation program as currently additional opprotunities existed for
    employees who exceeded territory performance:
    ● In number of active accounts
    ● No of calls per year
    ● Assign a larger area to Hammond
    ● Territory alignment is necessary
    ● Divide the territory of Barrow
    ● Hire 2-3 new employees to compensate for Concetta and Avery

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