I.M.A.G.

E INTERNATIONAL

I.M.A.G.E INTERNATIONAL
6% dollar market share in 2000 in U.S Reasons for profitability Advanced imaging technology Aggressive sales organization Excellent service capability Award winning machine designs elegance, simplicity, functionality Customers chose LImage for Speed Definition High speed output on any kind of paper Elegant styling

SALES FORCE
Among the best in the industry Extensive sales and product training in I.M.A.G.E 1 month training twice a year for new hire 1 week refresher course and 2 day field training visit for sales reps Monthly performance review from the district sales manager Good salary and benefits with respect to industry standards Collaborative and transparent work culture in the organization that encouraged sales reps to discuss their problems and suggestions with their managers

MEASUREMENT SYSTEM
Quota system used in Europe Sales reps assigned Quotas Quotas based on potential (next year sales) calculated by using regression

System used by Reynolds

Quotas beating previous years sales
Puts too much burden on the best people and too little challenge on the weaker employees

Potential for comparing performances of two sales persons

subjective number, arbitrary, difficult to convey puts unnecessary burden on weaker people and too little challenge on strong performers

MEASUREMENT SYSTEM
Metrics used by Reynolds Cumulative sales year-to-date Percent sales gain over same month last year Percent cumulative sales gain against territory BPI Performance in a particular category selected a month before Sales reps ranked based on these Metrics modified for rookies

MOTIVATION SYSTEM
Item
Palm Springs Convention

Description
Meeting for sales force, managers, marketing team, service and distribution manager (412 people)

cost
$1.2 Million $2913/person

Sales Contests

2 week all expense-paid trip for 4 salesmen, 4 managers and their spouses (8 employees) Good for short term results Sales promotions, acknowledgements, recognitions All expense- paid trip for top performing sales reps, top rookie and district managers

$200,000 $25000/person $5000/month $81,000

Newsletter Super Bowl

RECOMMENDATIONS
Product differentiation is based on quality and service capabilities rather than price because the product is expensive than its Japanese counterparts The product (Office copier) requires specialized sales staff The sales staff would also require negotiation and business management skills to deal with the customers here (offices usually large accounts) Retention of account and sustainable relationships with customers is critical The measurement system is not entirely based on sales

It measures the performance of a sales rep against potential (territory BPI), quota (% gain over the same month last year, cumulative sales) and a particular activity/product.
It indicates that the sales task is not narrowly concentrated on the revenues or sales but is comprehensive and broadly but clearly defined. This leads to job enrichment for the sales force which itself is a source of motivation. The current measurement system should be continued. The incentive/motivation system used (Sales Contests, Newsletter, Super Bowl) is very important to encourage healthy competition, to recognize and reward top performers. Some reduction in incentive/rewards system budget might be possible. But the data regarding the same is not sufficient.

Thank You