Pilgrim Drug Company

By
Group
Context
Thomas transferred to :Syracuse, New York Division as
Divisional Sales Manager

Objective: To improve Sales Performance

Thomas believed that Reassigning Territories and
getting sales reps to adopt the corporations sales
program might work

Veteran Sales Reps abhor the above idea whereas New
Reps are excited about the same
Syracuse Division Sales Force
Veteran Sales Reps
Bill Brooks (Retiring)
Clifford Nelson
Allen Simpson
Walter Miller
John Murray
Newer Sales Reps
Grace Howard
Michael Taylor
Linda Harrington
Matt Donnelly

3 Trainees are expected to receive territory assignments
Problems

Reassigning Sales Territories
Pros
Sales might increase as some accounts might get more
frequency of calls
Cons
De-motivation amongst the Veteran Sales Reps
Not Reassigning may cause the newer sales reps
leave the firm
Nelson wants the highlighted accounts (Exhibit 3) managed by Brooks. These
accounts account for 83.6% of Brooks s sales.
Understanding
How Sales Territories are formed and assigned?
Why designing a proper compensation structure
is important?

Sales Territories
To create balanced territories (so that sales
effort and results can be compared)
Balanced Workloads
Balanced Sales Potential
Develop compact territories
Minimize disruptions during the redesign
Unbalanced Territories can lead to Under-servicing or Over-servicing of
customers
Territory Assignments by County
Data Interpretation from Exhibit 2
Need to convert more assigned accounts into
active accounts
Miller(39/90), Simpson(29/48), Donnelly(56/104)
need support
Harrington needs to increase her sales volume
Taylor(29/29) can take more workload

Brooks s accounts need to be reassigned
Proposed Sales Territory Rearrangement
Nelson given Jefferson, Lewis
(Trainee T1 works along with him)

Nelson continues with Oswego as
before but Brooks 's account given
to Harrington along with Trainee T2

Taylor given the task of trying to
activate some of the inactive
accounts of Simpson and also takes
over Chenango from Miller

Trainee 3 put up with Donnelly to
assist him.



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