Abstract

Hushtek Corporation, a European FMCG company which was involved in selling detergents brands, entered the Indian market. The company wanted to gain a foothold in southern India before expanding to other parts of the country. A priority for the company was to enter Telangana state for which it recruited Mr. Desai as head of sales operations for the state. Desai’s immediate priority was to design the sales territories for the state of Telangana and recruit salespeople accordingly and present it to the country head. As an initial and immediate assignment, Desai had to design sales territories in one of the districts, Nizamabad. The case provides an overview of how a sales manager plans to design territories and the factors one needs to consider while designing sales territories and ensuring market coverage.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the issues and challenges in designing sales territories.
• Familiarize the student with the ‘Built-up Method’ or ‘Work-load method’ adopted for designing sales territories and the process.
• Understand the concepts of sales potential, primary and secondary sales, types of channel, and market potential, along with the nuances of dealer management, market coverage, etc.
• Stimulate discussion on what could be a better way of managing the organization’s sales efforts and market opportunities.

Keywords

Sales Territory Design, ‘Built-up Method’, ‘Work-load method’, Sales Management, Sales Force Management, Distribution management, FMCG