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Territory Organization Plan

Organizing a territory is important because it helps determine how to work smarter, not harder. For example, with the price of gas, it may not be smart to go from one side of a territory to another in one day, but instead to concentrate on various parts of the territory over the course of a week.

Create a plan that maximizes sales effectiveness, productivity, and organization by looking at how sales territories are, or should be, structured. For example:
- How will you maximize effectiveness?
- How would you organize a territory?
- What type of companies would you call first, second, third, and so on?

To complete your plan, research methods of territory design and organization. You may use Microsoft Excel or Word to create your plan.

Company Information:

The company is a manufacturer of refrigerated cases for the retail and grocery market. Here is some information that you need to know about the company:
- There is one corporate office and manufacturing plant based in Michigan, with a total of 100 total employees.
- There are regionally based locations, which currently cover six Midwestern states:
- Minnesota.
- Wisconsin.
- Michigan.
- Illinois.
- Indiana.
- Ohio.
- Currently there is one sales manager (you) and 12 sales representatives.
- The sales representative territory is set up geographically with two representatives per state.
- Compensation is based on a salary of $25,000 per year, plus a yearly bonus.

Solution Preview

In order to maximize the effectiveness of sales strategy of the organization, the existing territory and allocation of sales professionals has to be restructured.

First of all, the company should identify the key or major accounts of the organization that results in maximum sales for the company. In other words, the company needs to pursue 80: 20 rule that states that top 20% customers provide 80% business to an organization. It is important to identify such key accounts in every state, so that organization can dedicate 2 to 3 sales representatives, depending on the number of key accounts, exclusively to such major customers or key accounts. These key accounts will be served under a dedicated team of 2 to 3 sales reps, irrespective of their geographic location. The major benefit of such an approach would be that such key customers will get personalized attention, ...

Solution Summary

The expert creates a plan the maximizes sales effectiveness, productivity and organization by looking at how sales territories are, or should be, structured. How to maximize effectiveness is determined.

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