Post on 09-Jan-2017
transcript
The Valley Winery
The Valley Winery The Company
Valley Winery is the largest domestic wine producer in US, selling more than 40% of all wine produced in the USA each year. In 2004 the company’s sales exceeded the $600 millions.
The Valley Winery
Valley Winery is the best managed and most innovative wine producer in the US
Competitors perception
The Valley Winery Growth factors
Product related:Consistent qualityWide range of products
Price related:Relatively low-priced
Promotion related:The most aggressive and innovative push sales strategy
Place related:Strong distribution channels
The Valley Winery The Customers
Liquor and Beer distributors (50% owned)
Liquor and Beer wholesalers
The Valley Winery Products
The Valley Winery is producing:
Consistent-quality, low-priced wines
Wine coolers
The Valley Winery Products
The Valley WinerySan Francisco division - Sales
groups
The Valley WinerySan Francisco division - Sales
organization
The Valley WinerySan Francisco division - Recruiting
sources
The Valley Winery
Extremely high turnovers on the past several years
San Francisco division - The Problem
Contradictory factors:
Doubling turnover every year
7 months average sales reps working experience
Replacement of the total sales staff every year (50 reps)
The Valley WinerySan Francisco division - The
Conclusions
Quantity and Quality goal:Reduction of sales cost Profitability would improve
Decreasing turnover Sales would improve
The Valley WinerySan Francisco division - The
Observation
The Valley WinerySan Francisco division - Recruiting &
hiring process
Recruiting & training cost per year per rep
$25,000 X
50 reps$ 1,250,000
Excluding Cost of missing callsCost for new relationship
The Valley WinerySan Francisco division - Nature of
reps position
Reps operations
The Valley WinerySan Francisco division - Quota &
Sales fingures
The Valley WinerySan Francisco division - Causes of
the problemLong distance travelAggressive sales promotionStretching sales estimationPumping up the numbersNight telephone calls Lack of coachingFrequent organization changes
The Valley WinerySan Francisco division - Causes of the
problem and suggestion for improvement
The Valley WinerySan Francisco division - Causes of
the problemSan Francisco division - Causes of the
problem and suggestion for improvement
The Valley WinerySan Francisco division - Causes of
the problemSan Francisco division - Causes of the
problem and suggestion for improvement
The Valley WinerySan Francisco division - Causes of
the problem
The Valley Winery
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