Question: STEP 2. BUILD A STRATEGIC PLAN A strategy is how resources should be allocated to accomplish the overall goals of the company. It provides a
STEP 2. BUILD A STRATEGIC PLAN
A strategy is how resources should be allocated to accomplish the overall goals of the company. It provides a clear roadmap and defines the actions your sales organization should take to deliver the results. Examples of sales strategies are in the case under Current Sales Strategies.
Your strategies need to be sales strategies, not marketing or other functional strategies. You are a sales manager. Redesigning the ad campaign to create greater consumer awareness of the Stouffer brand and increase market share by 10 percent is NOT a sales function strategy. Sales strategies tell the organization HOW you, as the sales leader, are going to support company goals by implementing new sales organization strategies to be most efficient and effective at growing revenue.
Step A: Using your diagnosis of the current situation of the organization and additional information you have learned in the case (e.g. Frozen Food Category knowledge), build at least 8 new sales strategies for the sales organization. (Reference Chapter 2, begin at page 53). Feel free to use and revise a current strategy. If you do, it needs to be in addition to the new strategies you have constructed for your sales organization. Your strategies need to be in complete, detailed sentence statements.
Step B: Segmenting Customers and Prospects (Segmentation method used for case is not in the book)
Below are four possible types of customer segments. Please review them.
Strategic: These customers are critical to the growth of the SOUTH ATLANTIC COAST FROZEN FOOD COMPANY. You will invest funds toward this customer. You will seek more product distribution in their stores. You will plan together with the customer. Long term plan reflects longer term growth opportunities. These customers may view your product category as strategic to them. You will assign your best performing sales representatives to these customers. Sales representatives will apply the consultative selling method with these customers.
Sustain: These customer are important to maintaining current sales revenue and minimal growth opportunities such as more effective promotions and new item distribution in stores. Transactional selling will apply (Order taker, follow order through cycle and in store distribution). Sales representatives that are service oriented are best fit for these customers.
Non-Strategic: These customers are not critical to SOUTH ATLANTIC COAST FROZEN FOOD COMPANY growth. In some cases, these customers could be telemarketing/call center/inside sales type customers. They will not provide any sales revenue growth. In fact, they may decline in revenue because they see your product category as
Eliminate: These customers provide little or no value to your organization. They are typically expensive because they take a lot of time to manage and do not produce the sales revenue ROI when running sales promotions. To consider eliminating this customer from your portfolio, the following risks examples are evident: They do not pay their invoices on time, you product does not turn well at store level, the chain is closing stores.
Go online and search out information about one customer in each of the six sales territories (see Stouffer CURRENT CUSTOMER PRODUCT RETAIL DISTRIBUTION in the case). Review their profile. After reviewing their profile, decide how you want to segment each of those customers using the segments outlined above. Keep in mind, just because current customers are sources of current sales revenue does not mean that they will be in the future. For example, if the customer is closing stores, it is likely a non-strategic customer. For each customer, provide your responses with clear, detailed sentences explaining your decision.
Step C: Once you have segmented existing customers, identify at least one prospect (not currently in distribution) in each of the six sales territories that appears to be an attractive strategic growth prospect. Go to http://supermarketpage.com/supermarketlist.php to see a list of supermarket chains in each state. Research and decide which ones you will target for new distribution and new revenue of Stouffer. Do not limit your prospect search to the supermarkets. What other channels of new distribution do you plan to research further that justify product distribution of Stouffer (e.g. Convenience Stores, Club Stores)? Why did you chose these new channels of distribution for Stouffer?
Each steps above are worth 4 points. Refer to the 4 point rubric on the last page of the case.
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