Indian Institute of Management Kozhikode

IMAGE International
Group V

ROHIT NATH PGP/14/172

GAURAV PATANGE PGP/14/211

MANGESH PATIL PGP/14/217

MAHTAAB KAJLA PGP/14/280

SACHIN KUMAR PGP/14/294

Situation Analysis

IMAGE International manufactured a wide range of office copiers priced from $12,700 to $500,000 Company has 6%(small but profitable) market share

Preferred by customers who value speed, definition, highspeed output and styling Companys US sales force was one of the best in the office machine industry Collage graduates , young (between 28-40yrs) and Successful
Page 2 Marketing of Services | Project Proposal

Sales and Product Training

New Hire

One month training course twice a year

Sales reps

One-week refresher course each year Two days field training visit and performance review each month

No formal performance appraisals on annual or periodic basis

Page 3

Marketing of Services | Project Proposal

Hobart Reynolds (Sales director of IMAGE US)

Philosophy emphasized on

No reports except under special circumstances No assigned quotas Encourage weekly discussion on all work-related problems
Page 4 Marketing of Services | Project Proposal

Salary Structure
Post District Sales Manager Sales Reps Basic $130000 $78000 Commission NA $50000
Expenses
reimbursed

Bonus (based on profitability) $65000 $13000

Blazers
($1100 cost)

Medical
Benefits

Leased car Paternity leaves

Page 5

Insurance

Marketing of Services | Project Proposal

Moral building schemes

Existing Scheme
Providing golf lessons who wanted to learn Sales contest- paid trip to Rome, Florence, and Venice Newsletter No individual salesmen quotas Personal objectives to improve their performance Separate sales standing for rookies

Proposed Scheme
Hole cards poker scheme
Page 6 Marketing of Services | Project Proposal

Problem Identification

To evaluate the existing and proposed moral building schemes; thus selecting the best alternative(s)

Sales & Distribution Management| IMAGE International

Evaluation of Alternatives
Moral Building Scheme Golf lessons Sales contests Arguments Create healthy environment(+) Very Costly(-) Encourages healthy competition within sales force (+) Favorable for short term results (+) Same employees winning the contests again and again(-) Create fun element in the company and keeps its employees closely bound (+) Cheaper method (+) It reduces burden on best people and some challenge on weaker people (+) It will not create psychological burden on sales people (+) Overall Evaluation

Newsletter

No Individual Quota System

Sales & Distribution Management| IMAGE International

Evaluation of Alternatives
Moral Building Scheme Arguments Overall Evaluation

Personal objectives

Instead of quota, personal objectives creates more achievable goals (+) Healthy competition among sales reps (+)
Motivate new hires (+) Healthy competitive environment (+) Innovative way to create motivation (+) Providing opportunity to weaker employees (+) Neat and unbiased incentive scheme (+)

Separate sales standing for rookies Hole cards poker scheme

+ +

Sales & Distribution Management| IMAGE International

Recommendations

Shorter product life cycle and huge number of competitors in the market makes personal sales service a primary point of competitive differentiation and leverage
Reynolds should continue with his moral building schemes

Page 10

Marketing of Services | Project Proposal

Q&A

11

Sales & Distribution Management| IMAGE International