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By

Group-1
Tilak Nayan Reddy – 1201
B P V Mani Teja – 1210
Tirukala Muni Hemanth – 1214
Avinash – 1226
Veerendra Naidu Kandi – 1247
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1. Anna George – Sales Manager

2. Elise Smith – CEO and founder
3. Emilio Chao – Head of Sales force
4. Catherine Edwards – Head of HR
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Case Overview
 In 2015 Anna George joined Verona Groupas a sales manager.
 Her territory comprised high-end specialty clothing and department stores in the western
United States.
 She has 20 years of experience sales and was well regarded in the industry.
 In her first two years George had missed her sales targets and received mixed scores from
customers
Anna George’s Scorecard 4

Goal Actual

1) Total Sales $1.7 million $1.3 million

2) Aggregate Number of Customer Visits 100 114

3) Aggregate Number of Customer Emails and Calls 400 526

4) Number of New Contracts Signed 7 8

5) Renewal Rate of Existing Contracts 100% 85%

6) Customer Satisfaction Score 4.5 4.1

7) Timely Completion of Customer Logs Green Green

8) Regular Input at Weekly Planning Meeting Green Green

Overall Performance Score 2.0

Industry Context 5

 Market $300 billion in annual sales globally.

 Many designers used a hybrid approach, selling through both direct and
indirect channels.
 This market was expected to grow 4% to 5% annually over the next few years.
 online sales would total 25% of this market by 2025
 Well-known names in this space included Versace, Prada, Oscar de la Renta,
and Marc Jacobs.
 Prices for luxury apparel started from a low of $200 and could run over $10,000.
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 A 2017 report on the luxury goods industry argued that designers looking to expand their business
and capitalize on current market trends should consider doing the following:

 Develop one-to-one relationships with younger generations, local consumers, and tourists
 Implement a holistic, omnichannel approach to distribution, providing inspirational
experiences through redesigned customer journeys and a revamped distribution footprint
 Interpret customer aspirations to reinvent offerings, while staying true to their own brand
identities and legacies
 More effectively personalize products, services, and message
 Invest in mastering touch points throughout the customer’s lifetime.
 Invest in the talent and capabilities required to win in this new luxury era
Overview of Veronica

 HQ: NYC
 Employee Count: 284 (60% manager and above)
 Mission: Quality & Good Customer(Retail) relation
 600 US and 200 international stores
 Sole focus on luxury brand unlike competitors
 Strong presence in east coast of US
 Only third-party retailers
Departments
 Design Team – Headed by Smith
 Merchandising Team – Set prices, analysed sales and marketing trends
 Marketing and PR Team – Promoted through campaigns
 Salesforce Team – Worked with retails partners
 Shared Services Team – HR, IT, Finance, Legal
 Production Team – Worked with suppliers

 No Interdepartmental reporting lines but collaboration was encouraged

 Two collections (Spring and Fall) with 100-120 pieces
 Cultivated “Design Culture”
Data sharing and analytics

 Invested heavily as Smith believed this was a key competitive

advantage
 Annual Customer Service Survey and Employee Survey
 JULIET
 Read within a day and responded within 2.
 Universal access
Performance Management

 360° performance reviews

 For Managers and Above
 Supervisors, Direct reports and colleagues
 Quantitative and Qualitative
 In June, employees met with Manager to review and also set goals for
upcoming year
 Edwards then derived individual score by interacting with
department Heads
 No more than 20% received 4 and at least 20% received 1
 Bonus of 20% to 200% from company-wide bonus pool
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Weekly Meeting

 Meetings on Monday mornings.

 colors and cuts to pricing and advertising campaigns. The internal teams shared
new ideas they were considering—using the group as a sounding board.
 JULIET.
 Big company events - forum
 Employees were also asked to submit topics they wanted to discuss.
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Salesperson Role

 5 regions: the Northeast, the Southeast, the Midwest, the West (other than
California); and California with 22 salespersons and sales managers.
 Difference - the current or potential sales volume).
 Travel budget
 Visit department stores and specialty stores and sell training or marketing
materials
 Marketing budget - percentage was standard across the firm.
 JULIET
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Salesperson Role
 Brand - sales team’s best asset.
 floor plans and suggestions for displaying and marketing its clothes.
 They had little flexibility in customizing prices and contract terms.
 Verona Group also had an internal pricing system through which a salesperson’s
marketing budget was charged for the internal resources he or she employed.
 Scorecards metrics. Salespersons were paid a fixed salary plus a bonus.
 Sales targets - variable compensation.
 The second biggest driver was customer survey scores.
 Fashion design and shipping speed
Anna George Situation 14

 She missed her sales goal and customer service scores were poor.
 But Good peer reviews
 She used JULIET and contributed regularly to the weekly meeting.
 Most of customer reviews were related to dissatisfaction with the
product and Verona Group’s marketing materials.
 Salespersons who were consistently rated fours, none were in the
western or southern United States.
Solution 15

 George should not be asked to leave the company

 Proven track record
 Most of the performance metrics are better than expected
 Recommended for places with low presence
 Improve west coast presence by acknowledging different tastes
 Steps to retain George
 Increase span of control of sales team as they’re accountable for
everything
 Support and proper communication from design teams
 Proportionate all the regions in the top and bottom 20%
 Quick response between the teams.
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