CASE 08

MEDICETRA MEDTECH COMPANY INC.

20085 PALLAVI S P
20087 KOLACHANA SAI SRI HARSHA
20088 VARDHINEEDI VIJAYA NUKAMBIKA
20091 MAYA D VYAS
20095 NISHKALA GOWDA B Y
20102 RAJATH HANDE C R
20105 PARVATHI M L
20106 SAYANI

Presented to: Dr. Mousumi Sengupta

Presented on: 02nd September 2021
 SUMMARY
 The company is founded by Phil Emerson in 1967
 By 2016, Medicetra served 3,400 customers operating in 5 states
 The company is known for its large selection of top manufacturer brands
a n d e x c e l l e n t c u s t o m e r s e r v i c e f o r d e l i v e r y, i n s t a l l a t i o n , m a i n t e n a n c e a n d
repairs
 The company had an extensive product portfolio including dental operatory
systems and radiology equipment
 They were facing problems regarding employee motivation and
compensation
 The company decided to develop alternative plans in order to reduce these
problems
 ISSUES
 T h e n u m b e r o f n e w c l i e n t s w a s l o w.
 Sales expenditure was becoming issue.
 Reduced motivation among the employees due to the present compensation
plan.
 Salespeople had an imbalanced sales mix.
 Limited monetary incentives
 Could not meet the projected goal
 Inequality of product potential per territory
 Discrepancy in selling processes
 Low cross departmental cooperation
 Few departments felt neglected and undervalued.
 COMMISSION PLAN
PROs
 Commission based on product
group, on basic salary
 Cost effective for the company
 Constant motivation
 Simple, not too complex
 Income increase by $2729
CONs
 Required a deduction in the basic
salary
 Required careful communication and
design
 Difference in territory potential
might affect employee motivation
 Q U OTA - B O N U S P L A N

PROs
 Lump sum bonus on preset quota
 Motivating and ambitious
 Employees will also receive
their current salary
CONs
 Room for faulty ways to pull future
sales
 Step1-Step 2 approach found to be
too risky in large markets
 Unsure about the frequency of
bonuses
 CO M M I SS I O N - B O N U S P L A N

PROs CONs
 Could be a good surprise with  To o c o m p l i c a t e d
positive outcomes  Ve r y e x p e n s i v e
 Added dimension for different  Might distract the employees
set of customers  Added dimension for different set of
customers
 More complex
RECOMMENDATIONS

01 02 03
Encourage all departments to When creating a Welfare of Salespersons
work together to develop a compensation plan, take
strategy for increasing sales. into account all
departments.

04 05 06
Address territory difference To inculcate inter team Commission plan based on the
collaboration. products they sell.
(Or 75% - 25%)
 LEARNINGS
 It is critical to select the best and most appropriate compensation plan for
salespeople.
 Motivation is crucial for getting a positive outcome.
 Recognition and appreciation is important for all the departments of the
organisations.
 Compensation plan is very crucial as it determine their will and efforts
e m p l o y e e s p u t f o r t h e c o m p a n y.
THANK Y U!