Silverton Confectionery is a growing Berkshire-based company specialising in selling quality chocolates and sweets at higher than average prices through newsagents and confectioners.

At present their span of operation is limited to England and Wales, which is covered by a salesforce organised along geographical lines. Each salesperson is responsible for sales of the entire product line in their territory and for seeking out new outlets in which to develop new business. The system works well with Silvertons salespeople, who are well known by their customers and, in most cases, well liked. The salespersons responsibilities include both the selling and the merchandising functions. They are paid on a salary plus commission system.

The success of this company, which has exploited a market niche neglected by the larger confectionery companies, has led Silverton management to expand into Scotland. You, as national sales manager, have been asked to recommend the appropriate number of salespeople required.

The coverage objective is to call upon all outlets with a turnover of over 200,000 three times a year, those between 100,000 and 200,000 twice a year and those below 100,000 once a year. As a first step, you have commissioned a market research report to identify the number of outlets within each size category. The results are given below.

A salesperson can be expected to call upon an average of 60 outlets a week and a working year, after holidays, sales meetings, training, etc., can be assumed to be 43 weeks.

Discussion question

How many salespeople are required?

Answer rating: 100% (QA)

To determine the number of salespeople required lets break down the number of outlets within each tu... View the full answer