Case study on Videocon
Case Facts: * Mr Sanjay Nigam recently got promoted as the area sales manager. * His main work is to allocate quota among his five divisional sales managers. * A portion of Mr. Sanjay’s compensation is dependent on, how the divisional sales managers would reach their given quotas. * He was heading the refrigerator business for Videocon, later he was given the responsibility of the sales of the region. * 1985, via technical tie up with Toshiba; Videocon launched India’s first world class colour television. * Videocon has almost zero waste technology which help reduce cost by optimizing the production process. * The company now produces both colour as well as black and white televisions.
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The company expects a healthy growth in this department independent fo the market condition. * The sales team of Videocon are basically drawn from 2nd level b school with aptitude and knowledge about the local market. * They are trained so that they can take higher responsible positions after few years. * Videocon also hires experienced sales executives who can contribute by managing local advertising campaigns and local sales promotion. * The total sales budget allocated for the year 2010 is 5000crore, which is 15% more than the previous year. * Mr Sanjay heads a large part of South India covering Tamil Nadu, Karnataka, kerala and Goa. * His first work is to project current sales based on the previous years sales. * Next step is to examine the sales data compiled by the weekly sales from all division that is saved the warehouse. * Account analysis was also done based on the size of the large institutional buyers. * City wise allocation was also done to find out the contribution of each city in the total sales. * The salespersons are consulted to ensure all the potential areas and troubling issues. * Mr Sanjay is facing a more difficult situation as he feels he lacks the experience that is required for the allocation of budget. * The general economic condition was good and the middle class was happier due to the allocation of dearness allowance. *