SWANTANTRA COMPANY

(sales quota issue)

GROUP-8

1. PRIYANSHU SONI- TM2120177

2. REETIKA SINGH- TM2120122
3. ITIKSHA MESHRAM- TM2120304
4. DEVESH SONAWANE- TM2120188
5. RADHESHAM DINDORE- TM2120178
6. ASHUTOSH YADAV- TM2120150
7. HINA MADHWANI- TM2120403
 INTRODUCTION TO CASE
STUDY
• SWATANTRA COMPANY- 1940

• Sales force - > 100 sales representatives

• Salary-cum-commission

• Salaries- length ; performance; experience

• Commission- basis of % of quota achieved

• Quota in new territory- 10 lakhs per annum & raised by 10% per year
• Mr. Kapoor joined – new territory of south Delhi 1970
• Mr. Arora joined 1980 as new territory of Faridabad at salary of 500/month
• Mr. Arora received pay cheque of Rs 1000 ( commission-500)
• Mr. Kapoor received Rs 950 overall

Conversation between Mr. Kapoor and branch manager

• Mr. Kapoor wants to quit unless he was paid more than Mr. Arora
• And the system of quota fixation should be changed
SALES QUOTA- A specific revenue amount
that a sales management team establishes
for a company.

• Volume Quota
TYPES OF • Revenue Quota
SALES • Profit Quota
• Activity Quota
QUOTA – • Combination Quota
 OBJECTIVES OF SALES QUOTAS

Providing Controlling Motivating Identifying

Performance Performance People Strengths and
Standards Weaknesses
 QUOTA SETTING PROCEDURE

SET ADD ALLOT MAKE ADAPT

SET THE ADD THE ALLOT MAKE SURE ADAPT
PARAMETERS PERCENTAGES INDIVIDUAL THAT THE QUOTAS TO
FOR OF GROWTH QUOTAS TO SALES QUOTAS MARKET
DEVELOPING EXPECTED EACH SALES WELL REALITIES.
QUOTAS PERSONNEL UNDERSTOOD
BY YOUR SALES
TEAMS.
CRITICAL EVALUATION OF THE
PRESENT SYSTEM OF QUOTA FIXATION:
 The organization is currently using the Sales Volume Quota system.
 In this system, the stress is being laid on the variable salary based upon the sales
volume contributed
 There are absolutely equal opportunities for every person irrespective of the
experience of the person or the maturity of the market he/she is serving.
 According to the case, due to this method, the employees are getting demotivated
and are willing to leave the organization According to the case, due to this method,
the employees are getting demotivated and are willing to leave the organization
 POSSIBLE SOLUTIONS

The company should start using the Combination (Sales + Activity) quota
system for quota fixation because:
• The variable pay should be different based on the maturity of different
markets.
• The quota should increase as a percentage of the previous target and not on the
basis of target achieved.
• The territory assigned to a person should be increased on a gradual basis to
give him more opportunities to earn incentives.
• There should be rotation in territories to give equal opportunities to all
salespersons.
 The Zonal manager could use the following ways to
handle the situation:

As a Zonal
 Assure Mr. kapur that the current system of quotas will be
Manager, how tailored keeping in mind the maturity of the market and the
would you experience of every employee.
 He could be invited to be an advisor to help solving the
handle a current problem of quotas.

situation?  The territory of Mr. Kapur should either be expanded or he

should be given a new territory as he is a loyal employee
and has always achieved his targets despite the increasing
competition in his territory in order to retain him
THANK YOU