The sales legislature at the Designs by Kate (DBK) sells private label jewelry at the hosted parties and via online social media channel. They are also answerable for hiring, training, and organizing new sales reps. The CEO and founder Kate Creevey intended the commission plan to hearten sales reps to construct teams and become "leaders" for their team. The strategy has been very triumphant over the company's initial five years.
The CEO is concerned that increase in top-line earnings is slowing, perhaps due to an unwillingness by current sales representatives to build and manage their very own sales teams. A survey reveals that many sales reps believe their incomes from jewelry sales drop when they add their sales teams and members for hosting parties within the same geographic area as a result of increased competition. The CEO must revisit the commission arrangement to determine if it's still an effective incentive. The case carries a quantitative duty that pupils should complete as part of case analysis.
PUBLICATION DATE: April 19, 2011 PRODUCT #: 4284-HCB-ENG
This is just an excerpt. This case is about SALES & MARKETING
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