Recently, Abatements Furniture and Lea Meadows merged and faced the decision of whether to merge their sales efforts. Lea Meadows has 15 sales agents representing their upholstered products, while Abatements has their own sales force. The question is whether to assign the new acquired line to the existing sales force or to continue using the sales agents. Each company leader prefers to maintain their own sales responsibility.
Lea Meadows currently has 15 sales agents who represent their privately owned and manufactured products. Their net sales were $5 million in a market expected to expand next year, which is valued at $15.5 billion. However, the sales agents at Lea Meadows also represent other available products, and they earn 5% of net sales. It is estimated that they spend 10-15% of their time on Lea Meadows products.<
.../p>
On the other hand, Abatements has net sales of $75 million in the wooden furniture market valued at $12 billion. They have 10 sales representatives who visit 1000 retail accounts. These representatives earn a salary of $70,000 annually plus a commission of 0.5%. An advantage for Abatements is that their sales representatives have industry knowledge and respect. They typically make around 10 calls per week, spending an average of 3 hours on each call.
Bates aims to increase the call frequency to 7 calls per account per year to align with industry standards. John Boot, Vice President of Battlement, suggests giving the Lea Meadows product line to Abatements' sales force. This is because Abatements' sales force has established relationships in the industry and only requires 15% of sales call time to handle the Lea Meadows line. On the other hand
Martin Norman, Lea Meadows national sales manager, believes the line should remain with the current sales agents employed by Lea Meadows. Norman argues that these sales agents already have contacts with retail outlets specific to this product line and frequently reach out to clients not covered by Abatements. To cover these clients, Abatements would need to hire more sales representatives. Additionally, extensive product knowledge and intensive training would be necessary due to the numerous combinations associated with the Lea Meadows brand. Based on evaluation, it is recommended to continue with Abatements' current sales force. This is because it is more cost-effective to educate the existing sales force rather than relying on a different sales distribution calculation entirely.Lea Meadows employees should be incorporated, while Norman may need to be reassigned or let go, which may strain personal relationships but is a better option economically. Bates Manor By Octobers currently has 15 sales agents representing its privately owned and manufactured products, with a commission of 0.5%. The advantage of these sales representatives is their industry knowledge and respect. In order to match industry norms, Bates would like to increase call frequency to 7 calls per account per year for sales representatives in the industry. Alternative relationships within the industry can be beneficial, with only 15% of sales call time required for the Lea Meadows line. Martin Norman, Lea Meadows national sales manager, believes that the current sales agents employed by Lea Meadows should continue handling this specific product line.
- Advertising essays
- Audience Theory essays
- Competitor Analysis essays
- Consumer essays
- Marketing Management essays
- Marketing Mix essays
- Marketing Plan essays
- Marketing Research essays
- Marketing Strategy essays
- Point Of Sale essays
- Price essays
- Procurement essays
- Product essays
- Product Differentiation essays
- Promotion essays
- Promotion And Marketing Communications essays
- Retailing essays
- Trademark essays
- Anheuser-busch essays
- Brands essays
- Detergent essays
- Product Placement essays
- Research Design essays
- New Product Development essays
- Advertisement essays
- Brand essays
- Sales Promotion essays
- Advertising campaign essays
- Consumer behaviour essays
- Offer And Acceptance essays
- Wal-Mart essays
- Discover essays
- Accounting essays
- Andrew Carnegie essays
- Automation essays
- Business Cycle essays
- Business Intelligence essays
- Business Model essays
- Business Operations essays
- Business Software essays
- Cooperation essays
- Cooperative essays
- Corporate Social Responsibility essays
- Corporation essays
- Customer Relationship Management essays
- Family Business essays
- Franchising essays
- Harvard Business School essays
- Harvard university essays
- Human Resource Management essays