Sales and Distribution Management

Post Graduate Programme in Management 2023-24

Indian Institute of Management, Indore

Group Assignment – StepSmart Fitness Case

Submitted by:

Group 14

Kabir Dhamija 2020IPM065

Medhavi Nema 2020IPM076

Pari Singhania 2020IPM093

Pragati Martolia 2023PGP244

Sonali Jain 2023PGP351

Q. Take a decision regarding the future of your sales team.
Possible alternatives:
 Promote
 Give Notice
 Terminate
 Status Quo
 Change the territory
 Send for training
 Recruit more salespeople

The recommendations are as follows:

1. Walter Avery: We recommend changing the territory from ME to City of Boston
(previously Hammond’s territory). This is because his current region has a larger land
area (35,385 units) with lower population density (599,000), and the previous manager
notes that he has been uninterested in less populated Northern Regions. This will also
help him reduce travel time and have a better work-life balance.
2. Lucia Concetta: We recommend putting her on probation. It has been noted that she
focuses more on the larger clients and neglects the smaller ones. The case mentions that
“the salespeople could not rely on just one or two large accounts to drive revenue; they
have to establish numerous relationships with health clubs of all sizes and varieties at the
local level, in order to succeed.” She has also been able to only capture 43% of the
Buying Power Index (BPI) in her territory. Further, since she also has a perfect score in
training, we believe that probation is the only way to lead her to the right path. We are
also adding another sales person in the territory to help capture a larger BPI.
3. Daniel Ellis: We recommend that status quo is maintained for him. He has captured
85% of the BPI in his territory. He also has a great track record, and has good relations
with clients in his current territory. Further, he does not want to take up any managerial
positions, hence he should not be promoted.
4. Grant Foster: We recommend that status quo is maintained for him. He is an above-
average performer and has captured 79% of his territory’s BPI even while dealing with
personal problems. Further, taking any negative action against him in such a time might
 lead to a negative ripple effect among the entire team. We are also adding one
salesperson in his territory to provide the required support.
5. Matt Gibbons: We recommend shifting the territory from Eastern MA & RI to CT
(Barrow’s territory). This will resolve his ethical conflict of personal interest in local
businesses and his restaurant, and might also minimize the long, expensive lunches with
clients. We are also shifting him to the neighboring territory only, so that his major
motivation of having job flexibility remains unchanged. Further, he has been able to
capture 114% of his territory’s BPI, and hence we believe that shifting him to a
territory with more potential (BPI of 1.8, of which only 52% has been captured) will
significantly improve the overall revenues.
6. Sophia Barrow: We recommend putting her on probation and providing her
training. She has been in the same territory for 5 years and yet has only been able to
capture 52% of the territory’s BPI. Further, she has been resisting training, which
means she needs it, and a fear of termination might push her to take the training seriously.
Further, she might also learn on-the-job while working alongside Gibbons.
7. Sam Hammond: We recommend promoting him. He has had an above-average
performance, and has captured his market well (102.5% of BPI). Further, there have
been no complaints from either the current or the former manager. However, it can be
inferred from the case that his motivation has taken a hit, probably because he was not
chosen as District Sales Director. So the promotion might act as a good motivating
factor.

New Territory allocations

Territory Old Salesperson New Salesperson New Hires (If Any)

MA Ellis Ellis -
CT Barrow Barrow, Gibbons -
Boston Hammond Avery -
NH Foster Foster and new hire (1) 1
MA/RI Gibbons New Hire (1) 1
MA/VT Concetta Concetta and New hire (1) 1
ME Avery New hires (2) 2
5
Note: Hammond has been promoted, hence no territory has been assigned to him.