STANAMER CORPORATION

Plumbing and Heating Company ---

Sale Expansion

Key Points :

 Stanamer corporation is the leading company with a market share of 50%.

 J.B.Samson was analysing the situation about increasing the sales force by 15 people
 As the future was not favourable for any plumbing and heating company because of the
downturn of the housing sector for the next 6 months.
 The plumbing and heating company is directly related to the housing sector
 The company is also having the problem of excess stock in their warehouses.
 To survive the intensive market competition and sell off the excess stock lying in warehouses
Mr .J.B. Samson is planning to hire 15 additional sales personnel.
 M r. J.B. Samson is now in dilemma whether to recruit experienced sales personnel or
inexperienced sales personnel as the company traditionally follow recruiting inexperienced
people and train them.

How should Mr. J.B. Samson have gone about implementing the decision to add new sales
persons?

As the economic studies prove that the following six months is going to
be a downturn for the housing sector was a bummer for the stanamer corporation who has the
lions share in the market of 50% is under the problem of having excess inventory in warehouse .

Traditionally the Mr.J.B. Samson will recruit the sales personnel with
no previous experience and train them under six months program while sales recruit spent first
three months becoming acquainted with companies products and policies later attend formal
three month program emphasizing advanced product knowledge and sales techniques. Training
costs amounted to $2500/- per person. Once out of training new sales persons generally fully
operational and productive in from three to six months.

Conclusion: There is no time left for stanamer company to hire new sales personnel and train
them. They have got their enough problems regarding the unsold inventory, so speedy action is
required .

The company should have sent the experienced sales recruits to highly competitive reciprocating
areas than newly trained personnel.
It is better to recruit experienced sales personnel and train them for 15 days as they got enough
skills all they need to have is to get familiar with the company’s products and specifications.
Sometimes company’s policies need to be ignored in worst case scenarios.

In alleviating the excess inventory situation, what other alternatives should have been
explored?

Presently the sales personnel promoting to:

 Key personnel in hospitals.

 Key personnel in school administrations.
 Public utilities and government agencies.
 They also inspected customers products and made service calls.

The sales personnel should also have gone for the:

 Private companies
 Educational universities
 Huge manufacturing units of companies
 Entertainment places like malls, movie theatres, drive Inns,
restaurants&
 Apartments
 Other prospective customers.

Evaluate the appropriateness of stanamers various policies and practices relating to sales force
management.

The traditional policy of hiring the inexperienced sales personnel and

getting the recruited sales personnel familiar with the products and its qualities and other sales
techniques in six months training programme

This kind of policies and practises are appropriate for any well running
business and they should also thing of the worst case scenarios where the company might face in
future, that should be supported the additional and spare methods and ways of recruiting should
also be taken care.

As in the present case the stanemer company is following the

traditional approach for recruiting the sales forces where they don’t have enough time to pace
up with the problems in the market and with the unsold stock as well.