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The valley winery

Date post: 09-Jan-2017
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The Valley Winery
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Page 1: The valley winery

The Valley Winery

Page 2: 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.

Page 3: The valley winery

The Valley Winery

Valley Winery is the best managed and most innovative wine producer in the US

Competitors perception

Page 4: The valley winery

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

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The Valley Winery The Customers

Liquor and Beer distributors (50% owned)

Liquor and Beer wholesalers

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The Valley Winery Products

The Valley Winery is producing:

Consistent-quality, low-priced wines

Wine coolers

Page 7: The valley winery

The Valley Winery Products

Page 8: The valley winery

The Valley WinerySan Francisco division - Sales

groups

Page 9: The valley winery

The Valley WinerySan Francisco division - Sales

organization

Page 10: The valley winery

The Valley WinerySan Francisco division - Recruiting

sources

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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)

Page 12: The valley winery

The Valley WinerySan Francisco division - The

Conclusions

Quantity and Quality goal:Reduction of sales cost Profitability would improve

Decreasing turnover Sales would improve

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The Valley WinerySan Francisco division - The

Observation

Page 14: The valley winery

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

Page 15: The valley winery

The Valley WinerySan Francisco division - Nature of

reps position

Reps operations

Page 16: The valley winery

The Valley WinerySan Francisco division - Quota &

Sales fingures

Page 17: The valley winery

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

Page 18: The valley winery

The Valley WinerySan Francisco division - Causes of the

problem and suggestion for improvement

Page 19: The valley winery

The Valley WinerySan Francisco division - Causes of

the problemSan Francisco division - Causes of the

problem and suggestion for improvement

Page 20: The valley winery

The Valley WinerySan Francisco division - Causes of

the problemSan Francisco division - Causes of the

problem and suggestion for improvement

Page 21: The valley winery

The Valley WinerySan Francisco division - Causes of

the problem

Page 22: The valley winery

The Valley Winery

Thanks!


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