Laxmi

Projects: Sales
Structure
Dilemma
International Management
Institute, New Delhi
Group 9

Parth Anand 20PGDM035

Santosh Kumar Mishra 20PGDM046
Seerat Sethi 20PGDM047
Akhil Rawat 20PGDM068
Varun Batra 20PGDM248
Yamini Singh 20PGDM252
 ❖ Lakshmi Projects was set up in 1997, with an investment of INR 2 million with an aim to design bulk
material handling systems(BMHS) for its clients in different industries like food processing,
automotive, etc.
❖ It followed international standards in fabricating, assembling and designing which ensured a loyal
customer base and sustained growth rate over the years even when the economy was facing a
downside.
❖ Customer satisfaction and customer relationship is its utmost concern and it puts in every efforts
to ensure that by having a competent sales team, designing products that suits customer needs
and having a robust after sales services.
❖
Background of ❖
Lakshmi projects have been expanding ever since. By 2008, it had established itself in 8 states.
However, since recently, it has been witnessing a decline in its sales.
the Case ❖ As a part of its customer satisfaction agenda, it required sales representatives to meet its
customers in different states to understand their requirements.
❖ This led the sales representatives to feel neglected, tired and so the employee turnover started to
increase.
❖ It tried many ways to keep this in check by sending sales representative sto close by areas. But a
single person cannot have technical knowledge of all the products of the company.
❖ This led to decrease in customer satisfaction and so its sales started to decline gradually.
  Laxmi Projects was facing issue with recruitment and retention of
talent and friction among different teams.
 To maintain a right mix of different teams and hence optimize the
process.
 To maintain the growth numbers in accordance with the industry
standards and develop a balance between customer and employee
satisfaction.
 Nangia and his team had developed a new product that could outpace
competitors in the real estate and infrastructure segment known as
Dilemma the ‘dumb waiter’.

The dilemma that Nangia was facing with was whether

to hire a new sales force for the new product which
required a different kind of expertise and sales
orientation or to make do with the existing sales force
by training it?
 Establish a system for providing bonuses after meeting a
certain target. Can also provide other incentives like
Incentives Salesman of the Year award or a paid vacation

How could The sales team should be a mix of people with experience in
sales and young people to capitalise on both the experience
Lakshmi Diversify the sales
Team and the energy of the youth.

project drive
There should be a proper formal organisational structure so
its sales force Formal Organization
that each employee has accountability and there is a clear
distinction between the responsibilities of each team.
to meet the Structure

objectives? Lakshmi Projects can invest in technology and use IT based

applications or CRM to keep a track of their sales and after
Invest in IT sales services
 Current Problems: Structure of The Teams
How should
the structure
❖ Sales representatives were ❖ 2-3 areas can be combined to
of the sales unable to answer the form a cluster and we should
have cluster based sales team.
technical or product
team, after questions,
The sales personnel should have
basic knowledge about all the
products but have expertise in
sales team and ❖ Interdepartmental issues
.
atleast 2 products.

quality teams ❖ Bad resource allocation: As

company got larger, sales
❖ Increase number of members in
quality and after sales team since
representatives had to travel it is currently disproportionate to
be to perform a longer distance to create match the requirements of the
sales team.
leads
the dynamic ❖ To overcome the knowledge
based problems: Extensive on
roles? the field training to be given to
the sales team.
❖ Region wise monthly workshops
to update their knowledge.
 ❖ The New Product has a growth potential.
❖ It’s price is also lower than the competitors in the market.

What should Company should hire new employees specially for the this new product, but
geographic locations can be shared: like one sales person two nearby locations.

be the strategy
for a new Company can train these new employees in a much efficient and faster way to
start approaching customers for New Product as soon as possible.

product?
Having multiple product responsibilities hamper the sales person’s performance
also.

Separate sales force for new product will help promoting it aggressively in the
market.
What should The company should work on to improve the
communication between the departments.

be the sales Since sales and after sales teams are dependent on

strategy to each other, the sales team should notify the after sales
team about the set expectations to the customer.

reduce the After sales team should also notify the sales team if the
expectations were fulfilled or not for the customer.

friction
between the Both the teams should align their end goals.

sales and after Teams should also hold regular meetings so the

sales teams? expectations would be more clearer.

Thank you