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Case STUDY

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CASE 1 Read the case given below and answer the questions at the end of the case: To say

that I am exceedingly upset by what I witnessed in one of our dealer's offices. The other day would be a gross understatement. I saw one of our sales representatives, trying to sell to a dealer and he did not know what he was talking about. He could not answer some of the simplest questions of the dealer about our product and kept saying that he would find out the answer from the head office. Needless to say he didn't make the sale. "Since the personal lall up was Mr. Prakash, President of the Polanis Computer Company, Basant Mehta, the newly hired sales manager for the company, decided he had better head March. Basant nodded and asked "Is this representative of the entire sales force or an isolated case?" "Mr. Mehta that's what am paying you to find out and do something about." As Basant walked back to his new office to deal with a multitude of other sales operation problems he said his task unfolding as two major activities. (i) to determine how much the present sales force really knew about the computer products and how they are used and (ii) to develop an effective program to equip the sales force with the required product knowledge. On reaching his desk, Basant called his assistant, Vinod Kale. Vinod had been with the company since its inception eight years ago. Vinod started as a part time worker, while he studied for his graduation, and then took up a temporary when he graduated and joined the company full time. He was as little frustrated that he hadn't been promoted to Sales Manager when Basant was brought in from outside by Mr. Prakash. Basant asked Vinod, "I've just been in a meeting with Mr. Peach, and he has rather firm connections that the product knowledge of our representatives isn't what it should be. He wants us to do something about it. How do you feel about this" "oh, don't pay too much attention to the old man. He's been on that trip ever since he started the company. As far as he is concerned, no sales representative ever knows enough about the product or knows enough about the customer's problems. It doesn't make any difference to him that we are selling fairly well and sometimes exceeding quotas. In his eyes, that's just because the product is so good. He thinks he is the only one in the company who really knows about the product. It doesn't matter what you do, he'll still be saying the same things to you, and everything he sees one of the representatives making a presentation. Basant thanked Vinod for his opinions but couldn't help wondering whether he could afford to ignore Mr. Prakash's comments. Questions: (a) How can Basant determine how much the sales representatives know about the product and its applications? (b) How should he plan to develop the desired degree of expertise among sales people?

CASE 2

Read the following case and answer the questions given in the end : In a bid to expand the market and boost sales, LG Electronics Ltd. identified institutional sales as a focus area in the calendar year 1999. It plans to triple the target turnover to Rs. 150 crores from institutional sales. LG has honed its institutional sales strategy by identifing and proactively targeting five different segments to push the LG range : brand promotions; the welfare segment (factory workers and office staff); government sector; direct users (hospitals, hotels); and the canteen stores departments (CSD) of the armed forces. A distinct strategy has been tailored for each of the five segments. In brand promotions for example, the perceived value of the products given as gifts is important, whereas for the wellare segment aspirational value, convenience and easy financing are prime factors. Meanwhile, hotels represent a price sensitive segment requiring specially customized products. Welfare: In this segment, LG is targeting a consumer base - the aspirational consumer, mostly factory staff - that most companies ignore, but which has considerable clout in terms of generating volumes. This segment is being targeted on the convenience and easy finance platform. LG has just tied up with Birla Global Finance Ltd., part of the Aditya Birla Group, for the purpose. Under the tie-up, LG will unit-wise cover all the Birla companies. This amounts to over two lakh employees. This is a lucrative segment, claims LG, because of the high hit-rate; out of a potential base of 1,000 factory workers, there is an assured sale of at least 10 to 20 percent. Hotel Segment: In this segment, LG is targeting the five-star and middle-level hotels (50 110 rooms) by offering customized products. For example, LG offers a special 'hotel-mode TV' model with an auto volume leveler, which ensures that other guests are not disturbed. Another attraction for hotels is the cricket game TV model that would also prove to be popular and an interactive option with Internet, video/audio or room service menu facilities. LG claims to have sent out mailers to 1,200 hotels - and bagged at least 100 orders, besides the 'Palace on Wheels' luxury train, for providing TV sets in its 52 cabins. Now, LG is reading a range of interactive televisions for this segment, offering remote-controlled features like : the hotel menu, local facilities, billing,room sevice, video on demand, intenet, multilingual options. Canteens and the Government Sector: "We are perhaps the only company offering our entire range of products in CSD canteens," feels the product manager, of LG. In the government sector, which operates through tenders, significant orders so far included an order for 200 TVs for Himachal Tourism bungalows in the State and over 2,000 TVs for primary schools in rural areas in Maharashtra. The company has a five-memeber Institutional Sales Divison, with each devoted exclusively to one segment. It has 50 institutional sales dealers and a ring of sales representatives when interact with the dealers and conduct demonstrations when needed. Its infrastructure consists of 20 mobile vans wth glass windows to display the product range. These vans cover at least 500 km every month in both rural and urban markets. Questions : (a) Do you think such a field sales force is adequate to harness the market potential in the Institutional market ? (b) Would you recommend focuing on one or two segments out of the given five ? Justify your answer.

CASE 3

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