The Cabinetmaker Case Study

Improved Essays
The sales team is a very important aspect of any company that is trying to push goods to either end customers or other businesses. A business needs to be thorough in deciding which sales force structure it wishes to employ, the quality of salespeople, and how they motivate them. In the case of the cabinetmaker the strategy is rather straight forward since the company is trying to reach end customers through big box retailers. First, the sales force will be designed based on the customer sales force structure. Second, the company will utilize a high commission compensation plan combined with a new account bonus plan. Lastly, the company will take initiatives in order to maximize time actively selling and talking to potential customers. The following …show more content…
In order to effectively complete this objective the company must build strong customer relationships with major big box retailers such as Home Depot and Lowes. For this reason, the sales force will be laid out using the customer sales force structure. Teams will be formed and assigned to each of the major home improvement and hardware stores. The benefit to this structure is that it allows for the sales teams to form strong customer relationships with each of the major retailers. A strong customer relationship will enable the company to get the better and more valuable floor space and have the company’s cabinets advertised more frequently by the retailer. A good example of this structure in action would be Whirlpool, which sells major appliances in all big box retailers such as Home Depot and Best Buy. Whirlpool has successfully dominated the appliance industry through this particular sales force structure. In addition, the company should divide some employees to be inside and outside salespeople. A strong inside sales team is important when establishing relationships with the retailer. However, outside salespeople should be utilized to make sure that the displays for the cabinets are well laid out and that the retailer’s employees are well informed on the cabinet’s features. This means that the company should also have an aspect of a territorial structure to …show more content…
Most importantly, the sales team structure needs to be selected for the desired type of selling that the company plans to do. In this case, the cabinets are to go to big box retailers such as Home Depot and Lowes, therefore the best structure is to have teams for each customer just as Whirlpool does for their customers. In addition, it is important to have a motivated sales force, therefore the compensation will be designed to reward the best salespeople with commission and new account bonuses. Lastly, an efficient sales team will also enable for higher sales, therefore steps will be taken to increase selling time. As the manager, all these goals will be achieved to ensure the company has a successful end customer launch of the

Related Documents

  • Decent Essays

    To make sure you have the right strategy or plan in place, business owners must consider the opinions of their consumers first. The process of collecting varied opinions and gathering information about the services offered by a specific company using different techniques is referred to as 'Market Research '. The information thus gathered helps in creating new methods, products and lucrative business decisions. Types of Market Research Most of the companies gather information about their services using focus groups…

    • 749 Words
    • 3 Pages
    Decent Essays
  • Improved Essays

    You can use technology to increase organizational efficiency and provide higher service levels to more patrons. Successful loyalty building is an ongoing learning and revision process. Know Your Buyers According to the Marketing Donut, understanding your customers is the first step towards building brand loyalty. [1] It is important that you understand how and why consumers patronize your establishment as well as what goods or services…

    • 816 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Swot Analysis Of Big Lots

    • 786 Words
    • 4 Pages

    To make their strategy work they require numerous vendors and a team that is able to see and understand the trends in the marketplace. It is their sub-plans such as their marketing and human resource teams that hold the responsibility of identifying and obtaining the proper personnel and deals to meet the businesses strategy. The role of technology and supply chain management are also important for balancing out the supply and demands of the customers ever changing needs. Each part is required to work in concert to make the organization a success. Big Lots has found ways to balance the operation to become who they are today and to find their success for…

    • 786 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    After maintaining significant growth and establishing a strong reputation, it is necessary to expand the business in order to continue its success. Whilst the company was starting out, simply selling cabinet hardware to large contractors, an effective sales force structure would be territorial sales. This way the sales focus on a specific line of products to many different contractors, which can be in numerous locations. This sales force assigns each salesperson to an exclusive territory in which the salesperson sells the full range of the company’s products. However, now that the company is expanding and changing, it seems that there may be a more appropriate sales force.…

    • 763 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    The customer owns you” (Galbraith, 2005). This statement beautifully explains the reality for most retailers today and there is little doubt that the customer is becoming increasingly influential on the activities of companies, which are consequently becoming more and more customer-centric (Staflund, 2015). Customer centricity is a strong driver of omni-channel efforts as the retailers choose to implement an omni-channel strategy with the aim to provide the customer with a seamlessly integrated shopping experience (Staflund, 2015). In a customer centric organization, the firm must “literally organize around the customer” and have the ability to conduct business according to the preferences and wishes of the customers in order to build a relationship (Galbraith, 2005). (Galbraith, 2005) He means that this requires a close collaboration and interaction with the customers across all contact points and to then use the results of these integrative activities to reach consistency in the eyes of the customer.…

    • 1194 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    Another indicator for performance is that they’re having a higher percentage within the range of supermarkets in the area, that their customers are choosing them over their competitors. They want to be recognized successfully by their customers and as a Team Leader, ensuring that every checkout assistant is doing their job correctly and in a way that they are improving the shopping experience of their customers. Lastly, watching how members grow and develop new skills within a department could be another performance indicator. How do these indicators contribute towards Tesco’s overall objectives? These indicators contribute to Tesco’s overall objectives because by achieving all of these indicators, they provide the business with the success that keeps them the leading supermarket in the industry.…

    • 1614 Words
    • 7 Pages
    Improved Essays
  • Improved Essays

    Basically a sales manager is a person who is a door-to-door person who is trying to sell a product of merchandise and for the market sales to go up. It is important because it identifies the role of the sales manager and responsibilities. Importantly, the summarization of the sales manager client relationship. You need sales experience management skills which are likely to be more acceptable than any other thing. It is very important to have experience before to know what the qualifications are to understand the proper way of selling the product.…

    • 1020 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Customer Relationship Management and Customer Loyalty Customer Relationship Management (CRM) is a software program that retailers are using to increase loyalty from their best customers and grow their business. Customer Relationship Management is a business philosophy and set of strategies, programs and systems that focus on identifying and building loyalty with a retailer’s most valued customers” (Levy & Weitz, 2011, p. 275). Creating a relationship with a retailer’s most valued customer is different from trying to get as many customers as possible. CRM relates to a company’s attempt to take the customers who are already loyal and purchase goods or services frequently and target that patron with more personalized attention. Research…

    • 1569 Words
    • 6 Pages
    Improved Essays
  • Superior Essays

    It is an important matter of concern for the companies like Wal- mart to enter into the retail market. Many aspects are related in this matter like joining hands with company of similar capacity who are already in the market or search for any other alliance on profit sharing basis. The key policy Wal-mart implemented is that they treated employees as a most important valuable asset and business cannot survive without them, in this age of rapid development it is the emotional touch which helps the companies to grow. Taking the best possible care of company and employees, your suppliers and your customers, and your future will be bright, prosperous and happyBy considering and developing these essential factors before going global, your organization can realize the full potential of globalization and capture dramatic revenue growth. (Dalaney, 2004) Major problems and hindrances…

    • 1542 Words
    • 7 Pages
    Superior Essays
  • Improved Essays

    It aims to provide a special shopping experience for customers placing service as their number one priority. After every interaction with the company, Zappos wants its customers to evaluate the services as ‘WOW’. It is an open secret that high service quality leads to competitive advantage and better business performance. However, it is difficult for most corporations to put this theory into practice. To improve service quality and customer satisfaction, Zappos developed several strategies to provide a better shopping experience for its customers.…

    • 869 Words
    • 4 Pages
    Improved Essays