The Valley Winery Case Analysis Essay

1478 Words Apr 21st, 2012 6 Pages
The Valley Winery
Case Analysis
By: Paul Welge
Dr. Bob McDonald
MKT 4359
Section 1

Valley Winery was founded in 1933 after the prohibition and has grown to be the largest domestic producer of wine in the United States. The brand has multiple product lines that include both low-price, consistent-quality wines and also low-grade wines and wine coolers. The company has had a hard time retaining its sales force and despite the short-term increase in sales, it is not a sustainable growth.

The company has struggled to retain its sales force and has a nearly 100% turnover. There are 50 sales representatives in the San Francisco but
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This leads into another problem, which is the lack of motivation to sell the product. There is a lack of motivation to sell the product because the company does not offer a commission to anyone in the chain group. A commission has the potential to increase the motivation to sell and it also give the sales representatives an opportunity to reap the benefits of successfully selling the product. A sales representative that is invested into his or her success is more likely to be happy with his or her job and more likely to stay. This is also more motivation for those recent college graduates to use Valley Winery’s resources to gain enough experience to move on to a job that pays a commission. The unrealistic quotas placed on the sales representatives could be the cause of the high turnover as well. When a sales representative fails to make his or her quota, the sales rep can lose a lot of motivation to sell, especially if the quota is constantly unobtainable. If the sales rep can’t ever seem to make their quota, then it can also cause them to quit or be fired due to upper management seeing this as under performing, when in fact the quotas may be unobtainable. The lack of a commission could also hurt these quotas in that there is no motivation to try and reach the very high quotas. In exhibit 4, the quota was only made 10 times out of 63 samples taken. That is a sign that the quotas are not realistic and should be lowered. The last

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