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Lakshmi PROJECTS: SALES Structure Dilemma: Submitted by

Lakshmi Projects, an Indian company that specializes in bulk material handling systems, was struggling to meet sales targets due to an overextended and underperforming salesforce. The managing director was considering restructuring the sales, after-sales, and quality teams. Previous strategies like focusing on customer service and reorganizing sales territories had negatively impacted product sales and left representatives overburdened. Recommendations to address the underlying issues included hiring more experienced sales representatives, providing proper training, and limiting the product range to improve quality and focus.

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Sowmya Minnu
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648 views4 pages

Lakshmi PROJECTS: SALES Structure Dilemma: Submitted by

Lakshmi Projects, an Indian company that specializes in bulk material handling systems, was struggling to meet sales targets due to an overextended and underperforming salesforce. The managing director was considering restructuring the sales, after-sales, and quality teams. Previous strategies like focusing on customer service and reorganizing sales territories had negatively impacted product sales and left representatives overburdened. Recommendations to address the underlying issues included hiring more experienced sales representatives, providing proper training, and limiting the product range to improve quality and focus.

Uploaded by

Sowmya Minnu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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[Year]

Lakshmi PROJECTS: SALES structure


dilemma
SUBMITTED BY
DUVVURU SAIDEEPTHI-19018
ABILASH S-19063
ROHITH N-19104
SOUMYA CH-19133
LAKSHMI PROJECTS: SALES STRUCTURE DILEMMA

Introduction:
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.

Case analysis

Factors influencing the problem:


 Internal factors: Lakshmi Projects sales force has become more complex and less
efficient
 External factors: Industry dynamic, Financial Field sales and service requirements
SWOT Analysis:
 Strength- Expertise in designing BMHS
 Weakness- Weak sales force
 Opportunity- India’s CAGR for 2011-2015 is 15.62%
 Threat- Entry of new competitors having tie-ups with global players
Sales Structure:

Lakshmi
Projects

Regional Sales Regional Sales Regional Quality


Manager Manager Manager

Sales After Sales Quality


Representatives representatives Representatives
How Marketing Mix Affects the Sales force of Lakshmi Projects:
Product- Material handling equipment requires salesperson to be well versed with technical
specification and application of the products.
Geography- The Lakshmi focus is suppling to several industries like Real estates, Auto
motives etc. across 16 states in India.
Strategy issues:

Customer centric approach:

The company’s management believed that a focused sale not only enhanced the customer’s
satisfaction levels but also provided better customer insights, insights that helped the
company improve its designs and innovate better in alignment with its customer’s
requirements. But this customer centric focus also meant that the sales representatives felt
neglected, extensive travel, sometimes even for weeks at a stretch, left then overburdened and
fatigue. As a result, many sales representatives quit the job. High attrition rate forced
management to realize that a change in company strategy was necessary to strike the right
balance between customer and employee satisfaction level.

Reorganizing the sale force according to Geography:

The move was aimed at reducing each sales representative’s travel burden. In each
geographical region, the company tried to maintain parity between the number of sales
representatives and the number of customers. For this, they even hired eight more sales
representatives in 2009. Each had to cater to customers of all product categories, which meant
that they had to undergo specialized training to enhance their sales skills for the entire
product range, which of course made it difficult for them to remember the complete technical
details of all the products. The company could clearly see the negative impact of this new
sales force over a period. Product sales in most locations were greatly affected

Underlying issues of the case:


 More demanding role of a sales representatives
 Heavy competition in the industry
 Increase in product cost due to increase in sales force cost
 Difficulty in maintaining the competitive price
 Decreasing price margin
 Interdepartmental friction
 Lakshmi projects had slow growth rate compared to industry growth rate in India

Recommendations

 Hire more experienced people


Despite industry witnessed the growth from 2009 to 2011, a growth of more than 15%
the company started to decline because of lack of aggressive sales. So, in this case,
hiring more sales people will always help the company to reach the more customers
and eventually make more revenue and profits. Hiring more experienced people is
must in this sales force.
 Proper Training and make salesforce feel Important
Proper training to the sales people on how to make more pitching about the products
and delivering the importance of the particular product. In the case itself, there is lot
of demand and various customers in this particular industry such that the companies
should give confidence and made them feel important in the organization.
 Limit Product Range
Limiting the Product and the Improve the quality of the products which will always
help the company to retain the customers in long term. There is lot of the options for
the customers from the competitors so that lesser quality shouldn’t be a concern for
the company.

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