STANAMER CORPORATION

SALES & DISTRIBUTION CASE STUDY

Group No: I
• Bhavdeep Ratan
• Sejal Dumbwani
• Anuj Dhawas
• Akshay Chavan
• Yash Shinde 1

• Shubhankar Kute
Introduction:
 Stanamer Corporation is the market leader, with a 50% market share.
 The plumbing and heating company is one that has a direct connection to
the home industry.
 J.B. Samson was analysing the situation about increasing the sales force by
15 people.
 Mr J.B. Samson is planning 15 additional sales personal to survive the
intensive market competition and sales off the excess stock lying in
warehouses.
 The company is also having the problem of excess stock in the warehouses.
 Mr J.B. Samson is now in dilemma whether to recruit experienced sales
personnel or inexperienced sales personnel as company traditionally follow
recruiting inexperienced people and train them.
 As the future was not favourable for any plumbing and heating company
because of the downturn of the housing sector for the next 06 months.
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Questions

Q1. How should Mr. J.B. Samson have gone about

implementing the decision to add new salespersons?

Ans. As economic studies show that the housing sector will see a slump in the
coming six months, it's a disappointment for the Stanamer firm, which has a 50
percent market share and is experiencing surplus inventory in its warehouse. Mr.
J.B. Samson will typically hire salespeople with no prior experience and train them
for six months. Salespeople will spend the first three months learning about the
company's products and policies before enrolling in a formal three-month
programme emphasising advanced product knowledge and sales techniques. The
cost of training each worker was $2500. In three to six months after graduating
from training, new salespeople are fully operational and productive.

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Q2. In alleviating the excess inventory situation,
what other alternatives should have been explored?

Ans. 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:
 Apartments
 Educational Universities.
 Huge Manufacturing units of companies.
 Private Companies.
 Entertainment places like malls, movie theaters, drive inns, restaurants. 4

 Other prospective Customers.

Q3. Evaluate the appropriateness of Stanamers
various policies and practices relating to sales force
management.

Ans. The traditional policy of recruiting novice salespeople and

training them for six months in order to familiarise them with the
items, their attributes, and other sales strategies. This type of
strategy and practice is suitable for any well-run firm, and they
should also consider the worst-case scenario that the company may
face in the future, which should be supported, as well as
supplementary and backup techniques and ways of recruiting. As is
the case now, the Stanamer firm is using the usual approach to
recruiting salespeople, which means they don't have enough time
to deal with market problems and unsold stock.

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 Interpretation
 The Case demonstrates that Mr. J. B. Samson had extra stock in his warehouse and he wanted to recruit 15 more salespeople
to enhance product sales and distribution, but the Stanemar Corporation did not have time to hire and train new
salespeople. As a result, it demonstrates that a corporation should establish a production strategy in order to boost sales and
profit.

 Stanamer hired employees with little experience and put them through a six-month training programme. They then went
through a three-month formal training programme that focused on advanced product knowledge and sales methods. New
salespeople generally become fully operational and productive in three to six months after completing of training.

 All the promotional activities emphasized the superior good quality of product. company shall focus on the product
information and selling techniques of each and every products and also a emphasized is their price quality.

 The goods of the Stanamer Corporation are of better quality and are more cost effective. Promotional activities such as
company sales-training workshops, which focus on the product, information, and selling skills, aid in the development of a
product-quality relationship. Stanamer's sales team worked with a wholesale plumbing and heating distributor to sell their
goods. 250 salespeople contacted 1500 wholesalers, who in turn contacted 50,000 contractors and plumbers.

 District sales manager includes a variety of job titles such as "sales manager" and "operations manager." The sales manager
establishes sales targets and develops a sales strategy, and the sales team participates in the recruiting and firing process. A
company's operations and production are the responsibility of the operations manager. It also has a district price
administrator, an elderly service representative, and a district marketing person on staff.
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 Conclusion
There is no time for the stanamer corporation to employ and train additional salespeople. They've already got
enough difficulties with unsold product, so quick action is essential. Rather than sending newly trained
individuals to highly competitive reciprocating regions, the corporation should have deployed experienced sales
candidates. It is preferable to hire experienced salespeople and train them for 15 days because they already
have the necessary abilities and only need to familiarise themselves with the company's goods and
specifications. In the worst-case situation, corporate policies may need to be disregarded.
As in the present case the stanamer 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.
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It concluded that Stanamer corporation should also have considered more educational universities, private
companies, malls, theatres, drive in, restaurant etc for their promotional activities to increase there sales.