Case study Submitted by

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Hindustan Products Ltd. Snehrag Raghavan - 46 Shiju Cherian Siddharth K Susheel Hindupur Sneha Kulkarni - 26 - 77 - 99 - 59

Submitted to Subject

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Prof. Rajesh Nair Sales and Distribution Management

1. What were the major problems or issues faced by the company? Answer: The sales revenue and growth over the past several years, was considered unsatisfactory compared to the targeted growth of 15 per cent. The sales growth was also showing inconsistency. The organizations structure had no human resource (HR) position, as HR function was looked after by the General Manager (Administration) with different priorities. According to 3 of the Regional Sales Managers, the sales people were not motivated enough to do their job. They were paid less as compared to their competitors and hence the decline in the growth numbers. Also there was no policy like personal growth opportunity and formal recognition considered by the company as a part of motivational mix. If the RSMs are to be believed the company also had a high employee turnover. Delay in promotions was one of the main reasons.

2. If you were Ramesh, what would you suggest to the management, during the review meeting? Answer: Before suggesting, I would try to examine the possible reasons for decline in the sales by meeting up with the trade partners, the sales executive at the ground level and would try to relate to their challenges. If what the RSMs claim is to be believed I would suggest the management to step up an all-encompassing training and development mechanism so as to ensure better performance from the sales people. A sales department that will take care of training needs of the sales executives not only from the organizations point of view but also from a personal growth perspective would be a suggestion. Also, the decisions regarding the promotions of the employees should not be delayed when there are clear vacancies in the company. A slight more percentage of revenue should be used for promotional activities.

3. What improvements in sales force training would you suggest?

Answer: A performance linked incentive scheme on a regular basis that would motivate the sales people to perform should be considered. Non monetary recognition at frequent intervals in order keep the sales people motivated needs to be undertaken. Training pertaining to the ground level executives particularly focusing on improving the sales related skills needs to be developed. Promotions and increase in the frequency of incentives on showing good results in sales. The sales force should be trained as to how to conduct research and find out the reasons behind the success or failures of their brand.