This document summarizes a presentation by Hindustan Products Ltd. about the company's sales performance issues. Key points include:
- HPL was a major food products company in India facing increasing competition and inconsistent sales growth below its 15% target.
- A meeting was held with Regional Sales Managers who reported issues like inadequate training, low salaries, delays in promotions, and high turnover.
- The general manager of sales, Ramesh Shah, was concerned about unsatisfactory performance and sought suggestions for the management on improving motivation, sales promotion, analyzing regional sales, and setting salesperson targets.
2. Summary
• HPL was one of the largest food products company in India
•Product like milk & chocolate were sold nationally & other products like
butter, milk powder & chocolate are sold internationally to USA,
Singapore, and Gulf countries
• The product of company was known for high-quality and reasonable
prices.
• Ramesh Shah is a general manager (sales) of Hindustan Products Ltd. &
was concerned with unsatisfactory and inconsistent sales performance
of the company for the past few years.
3. The problem
• Increasing competition from local as well as MNC’s players
• No proper human resource, so HR function was looked after by the
general manager, administration
• Unsatisfactory sales revenue and growth compared to the targeted
growth of 15 percent
• Inconsistency in sales growth
• The company was unable to find the correct distributer who could take
responsibility of proper warehousing facilities
• Distributers were not able to compete with their competitors
4. RSM MEETING
RSM (North)
• motivation of
sales persons
• Less salary
compared to
others company
RSM (South)
• non-financial
rewards were
missing
• Decisions on
promotions were
delayed
• administrative
people had
different priorities
• had a high
turnover of
people
RSM (West)
• Initial training was
inadequate
• To improve the
performance of
employees at all
the levels of the
organization
• Companies
promotional
budget was less
compared to
other companies
RSM (East)
• Company never try
to find out from
the sales analysis
which region was
not performing
well compared to
the sales quotas
• Company never
tried to find out
which sales
representative was
not performing
well
6. Q-1) What were the major problems or
issues faced by the company?
•Competition from local players & also from MNCs like
Hindustan Lever, Nestle India, and Cadburys
• The sales revenue and growth over the past several
years, was considered unsatisfactory
• The sales growth was also showing inconsistency
• The selection of the right kind of distributors was
important, because the distributors had to invest in
infrastructure
7. Q-2) If you were Ramesh, what would you
suggest to the management, during
the review meeting?
• By increase compensation according to the achievements for the
sales person so that they will work more effectively
• Improvising sales promotion and by giving proper training to new
sales force would be beneficial for the growth
• Sales report should be taken from sales manager for areas so
that less developed area can be detected and could be developed
•By giving targets to every sales person which can be useful for
company to achieve minimum sales of the company
8. Q-3) What improvements in Sales force
training would you suggest?
• Proper understanding for the sales work
• Analyzing faults during training and rectifying it in
training itself
• Motivation factors to be increase by incentives
• Teaching them skills to deal with the strategies of
competitors