PREPARED BY

Group 1
Avik Poddar : 20BM61K06
M Omprakash : 20BM61K13
Mousumi Sarkar : 20BM61K14

Sales &
Distribution
Sales Quota
&
Performance
Analysis
Assignment

C
 Table of Contents
Executive Summary................................................................................................................................................3
Question 1: - “How Vijay’s district performance is analyzed?” ........................................................................4
Question 2: “What actions should Vijay take?” ..................................................................................................5
Question 3: -“You are a sales and marketing manager and you have just launched a new unique kind of
table fan in the market, which you have found to have a basic design defect on oscillation mechanism. In
the meeting with the CEO of the company, in the presence of production head and marketing head, you
have pleaded to stop selling, rectify the defect, and thereafter, produce and sell the fan in the market. The
CEO does not agree and insists you should continue selling and production to continue producing and
rectifying the defect, in the meantime. Your marketing head does not say anything. You think it is not
ethical to sell a defective product. What will you do?” .......................................................................................7
References ...............................................................................................................................................................9
 Executive Summary

In the following assignment we will be analyzing Vijay’s district performance as shared in the case let.
Vijay, who is the district sales manager is rather worried with Ashok’s territory which seems visible off
the charts if compared to Alok, Suresh and Pradeep. For any company revenue is the key driver and in
this case Ashok has not played his part enough in contributing to the overall districts performance.
However, a closer look will clearly show that all four territorial candidates are having performance
issues and they must all be addressed and controlled.
Question 1: - “How Vijay’s district performance is analyzed?”

Vijay sets monthly quotas for the four territories under him by dividing the district quotas equally to
the four territories as mentioned in the above table. The 4 equivalent territories are looked after by
Alok, Suresh, Ashok and Pradeep.

a) Alok used more sales expense among all. But both net sales of product A and B were increased.
He got one extra new customer (total being three) but used more number of calls among all
and exceeded sales expense.
b) Suresh also used surpassed allotted sales expense. But both net sales of product A and B were
increased. He met the quota of new customers but used a greater number of calls.
c) Ashok used less sales expense; both net sales of product A and B were not met; new
customer quota fell short of expectation and used lesser number of calls.
d) Pradeep also less sales expense; net sales of product A did not meet target, but net sales of
product of B increased and total net sales also achieved; new customer quota also met but a
little bit greater number of calls.

So, we can see that none of the 4 salespersons achieved all the quota. Detailed analysis of Vijay’s
district performance is shown below:

Let’s assume, a system incorporating both Goals and in Figure 1.0 shows the performances/points
scores. In this system, four different aspects of the sales job are weighted.

1. Column 1 shows the quota per territory of the district. (district divided into 4 equal territories).
2. Column 2 represents total district Quota (total territory quota).
3. Column 3 shows actual achieved per each quota
4. Column 4 shows the percentage of target achieved.
5. Column 5 shows weight of each activity depending on their importance
6. Column 6 indicates the percentage of target achieved multiplied by the weighting factor to yield
the weighted performance in column 6.

Finally, column 6 total is divided by the column 6 total to determine the total district performance
rating.
 Vijay’s districts consisting of four equal territories
column 1 column 2 column 3 column 4 column 5 column 6
Performance Quota per Total Actual Percent
Criteria Percent Weigh
territory of District Achieved Quota x
Quota (importance)
district Quota Quota Weight

Net sales Rs. 2,00,000 800000 7,68,000 96 3 288

product ‘A’
Net sales Rs. 3,00,000 1200000 12,09,000 100.75 3 302.25
product ‘B’
Rs. 5,00,000 2000000 19,77,000 98.85
Net sales total

2 8 8 100 2 200
Number of
new
customers
140 560 590 105.35714 1 105.3571429
Number of 29
Calls
Sales Rs. 5000 20000 20100
expenses
9 895.6071429
Vijay’s district point score = 99.5

Overall Vijay’s district performance is fine, but individual territorial Quota has not been achieved. At
territorial level all four Alok, Suresh, Ashok and Pradeep need to be addressed on how they can
improve their performance.

Question 2: “What actions should Vijay take?”

The sales plan includes sales goals, sales strategy, action plan, costs of executing the strategy and the
action plan.

i) Step one is to look at the sales volume objective to be achieved during the budget period of say
one year.
ii) Then based on the marketing and sales strategies, the tasks or actions are decided that are
required to be carried out in order to achieve the earlier stated objective.
 iii) The third step is to estimate the costs of carrying out the tasks; if profit level can be achieved, it
is fine, else there is review and modification.

Corrective action has to be initiated and the organization needs to buckle up and gain control of the
situation before actual performance moves haywire given the standards in the budget.

Hence whenever there are cognizable variances from what has been set as the budget for the afore said
time period, two basic courses of action are recommended:

i) To determine whether the variance is a result of poor performance by the sales group if yes,
corrective action is taken.
ii) If it has been because of uncontrollable factors, revise the budget to reflect changed conditions.

Corrective actions that Vijay should take-

• Skills Coaching & Training:

As sales manager Vijay should evaluate his team for gaps in capabilities. There are various skills
coaching and training programs by using the most popular & latest sales methodologies that aimed
to improve the performance.

• Territory Adjustment & Alignment:

After the following skills training, Vijay should look to realign the planned territories and reduce the
regional gaps with salespeople of different skill sets and capabilities.

• Tools & Rigor (managing to the milestones):

There is various tool that can be used to maximize the potential. It can help the sales processes and
able to track the methodology tends to deteriorate over time. In this way Vijay can clean-up and
track rigor by initiatives which can be temporarily helpful.

• Compensation Plan Adjustment:

Vijay can revise the compensation plan and provide extra “grease” to motivate the salespeople. It
can be also used as an effective tool and can be done in conjunction with HR, finance, and a
compensation professional.

• Performance Evaluation & Management:

 Vijay can also use end-of-year performance evaluations as an extension of the skills coaching that it
leverages a formal process to adjust the salesperson’s behaviour and performance.

• Appreciation and Reward:

Rewarding can be another action that do well and can eliminate sales team members who are
systematically not achieving the targets or showing the potential to do so.

Question 3: -“You are a sales and marketing manager and you have just launched
a new unique kind of table fan in the market, which you have found to have a basic
design defect on oscillation mechanism. In the meeting with the CEO of the
company, in the presence of production head and marketing head, you have
pleaded to stop selling, rectify the defect, and thereafter, produce and sell the fan in
the market. The CEO does not agree and insists you should continue selling and
production to continue producing and rectifying the defect, in the meantime. Your
marketing head does not say anything. You think it is not ethical to sell a defective
product. What will you do?”

The responsibility of a sales and marketing manager is not limited to strategizing the marketing
policies, forecasting, and budgeting the sales, assigning quotas to the team members and motivating
them while helping them achieve their goals.

A sales manager has an altogether different role to play in terms of research and development of the
product and fine tuning the product with aid from the various reports and customer feedbacks. It is the
sales and marketing manager who creates market opportunities and while doing so understands the
market sentiments.

The sales and marketing manager holds some ethical responsibilities as well towards the brand and
towards the customers. He/she must protect the brands integrity and try to promote it to generate more
revenue and gain on market share. He/she can do this through loyalty with customers and a sustained
reputation in the market.
The current scenario speaks otherwise, in this case the sales and marketing manager is being told by the
CEO to continue to sell a product (new and unique table fan) having a basic design flaw. Herein, we
must understand the standpoint of each of the persons present.

The CEO in this case is trying to stay on top of the game, hence his idea is to do parallel processing i.e.
to sell the products and at the same time continue to progress on the bug fix.

As sales and marketing personnel, one must hold true to the following values,

✓ Honesty – true to customer and present the facts carefully promoting and not sensationalizing
✓ Responsibility – has to be the frontline defendant of the products quality and its contribution to
the society and environment
✓ Fair – has to maintain a balance between striking a profit and delivering value to the customer
✓ Respect – one must treat customers with dignity and hold moralities in place explaining the pros
and cons of the product wherever applicable.
✓ Transparency – one must understand that it is in maintain clarity a brand builds loyalty and
reputation in the market
✓ Citizenship – has to stay within the legal bounds of the state and country and adhere to policies

Source: https://pressbooks.senecacollege.ca/introbusinessbam101/chapter/chapter-2-ethical-decisions-and-socially-responsible-business/
This scenario is not justified because the marketing head did not intervene, here it would have been the
job of the marketing head to go back to production and find out the compliance. There is always a
threshold to the permissible limit of issues in a product. If the reported issues are within those limits it
would not be wrong to continue selling the product because given time it shall be rectified and fixed.

However, if it is found that the products flaw is big enough and can diminish the brands value in the
market, they should take a decision otherwise.

As for the sales and marketing manager since his leadership is non supportive, he should not do
something which he does not want to.

If any of us from our team were in his/her place we would have stepped down from the position or
offered resignation.

References
https://mcmannransford.com/typical-corrective-actions-by-sales-leaders/

https://www.businessmanagementideas.com/sales/sales-quota/20914

https://www.slideshare.net/Arulvignesh/sales-quota-18922336

https://www.betterteam.com/sales-and-marketing-manager-job-description