Chapter 13 case study Essay Example

  • Category:
    Marketing
  • Document type:
    Case Study
  • Level:
    Undergraduate
  • Page:
    1
  • Words:
    600

4CHAPTER 13 CASE STUDY

Chapter 13 Case Study

Chapter 13 Case Study

This assignment will be a case study review of Tropical Spring Water, a company that was founded in the early 1990s. The company was among the first ones to venture into the bottled water business targeting residential consumers. The assignment will answer the two marketing related questions based on the case study.

New Tropical Spring Company seemed to rely on free samples as its main sales promotion. Which other sales promotion would be suitable for the firm?

Due to the limited amount of startup capital, the firm had to rely on free samples for as their main sales promotion strategy. However, as the company’s revenues began to increase, New Tropical Spring could have decided to invest in the services of a sales promotion agency. Mullin (2011) notes that sales promotion agencies are effective in delivering the desired sales results. Although the people behind these companies are not necessarily sales specialists, their creative ideas, and sheer ingenuity makes them stand out. Most of the agencies are creative, have great networks, and above all are willing to work within a company’s budget. According to Mullin (2010), many sales agencies are results driven and are willing to compete for any good business.

Another sales strategy that the company could have adopted is to organize health and wellness events. These events would be an opportunity to educate the public on the benefits of bottled water over tap water. The people in attendance would then be given an offer to get at least one-month’s supply at a discounted rate. If the strategy proves successful, the events could be rolled out into other neighborhoods. The new sign ups would be clustered around similar neighborhoods making it easy for distribution and other logistics.

Do you agree with the firm’s sales force compensation structure? How can it be improved?

A sales’ force compensation structure is a very important organizational aspect that has an impact on the profitability of a business. According to Zoltner, Sinha and Lorimer (2006), a sales force compensation structure should motivate sales persons to achieve or exceed targets. The firm’s compensation structure did not offer any incentives to the sales teams therefore; the company had to experiment with different strategies before getting it right. The plan also did little to attract and retain high performing sales persons. A good sales compensation structure energizes the team and constantly reinforces positive behaviors. From the case study, it is evident that salaries and commissions were not enough to motivate the sales team who had to face rejection from the customers constantly.

In order to improve the firm’s compensation plan, the management would have to correct certain aspects of the plan. Firstly, the compensation structure must be consistent with the adopted sales strategies, processes, and roles (Zoltner, Sinha & Lorimer, 2006). Secondly, the new structure should be compatible with the sales culture, drivers, and process. Finally, the plan must explain clearly the expected customer and company results, and quality of service.

If New Tropical Springs makes the above changes, it can be sure that the new structure will motivate the sales team to work hard and deliver the desired results. It will also make it easier for the marketing manager to identify strategies that work and those that do not.

References

Mullin, R. (2010). Sales promotion: How to create, implement & integrate campaigns that really

work. Philadelphia: Kogan Page Limited.

Zoltners, A. A., Sinha, P., & Lorimer, S. E. (2006). The complete guide to sales force incentive

compensation: How to design and implement plans that work. New York: AMACOM.