Lakshmi Projects: Sales Structure Dilemma
(8 pages of text)
In July 2014, the managing director of Lakshmi Projects in Delhi, India, finds himself struggling with the marketing and sales strategy for the year ahead. Founded in 1997, the company specializes in offering turnkey solutions for bulk material handling systems for industries in the fast-growing infrastructure segment of the Indian economy; its two main product categories are elevator and conveyor systems. Yet, the company was failing to meet its sales targets, largely due to an overextended and underachieving salesforce. What was the right structure for the sales, after-sales and quality teams in the organization? An additional concern was that a sales strategy for the company’s new product, set to launch in October 2014, had not yet been decided. Fluctuating industry dynamics, financial strains, field sales and service requirements meant that this was a complex decision that held larger consequences for the company’s future.
This case is designed to be taught in a core MBA marketing course in a segment on sales management or in a sales management course on deciding the salesforce structure and/or the basic concepts of sales design. Its key teaching objectives are:
- To understand the various factors affecting sales management.
- To understand the different factors affecting design of the salesforce.
- To understand which accounts, products, services and activities should be assigned to different sales teams.
- To understand how salespeople and their tasks should be structured.
India, Small, 2014
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