DESIGNS BY KATE: THE POWER OF DIRECT SALES
The problem with the commission based salary is that; fewer the sales are, lesser the income is!
In parties and with the help of social media, sale representatives at DESIGNS BY KATE sell jewellery. Jewellery is labeled with own name. They also hire, manage and train new sales representatives. To attract new sales representatives that can make their own team and lead it, the CEO and KATE CREEVEY, the founder, offered commissions. 5 years had been really successful following this strategy. But now the revenue has declined because of the present sales representatives. They are reluctant to make their own teams and lead them. According to the survey many sales representatives believe that the sales reduce because of adding more members in their team, when they all sell in the same geographical area. Commission declines and the competition increases.
The CEO must find new strategy to make them work on commissions based salary and do something to encourage them. Students are required to analyze this case and work on it as it also involves quantitative work.
This case study covers wide range of topics and broad discussions on consumer marketing, marketing management and strategy, personal selling, direct sales, sales compensation and sales organization.
Written by JOHN DIEGHTON AND SARAH L.ABBOTT.THE SOUCE TAKEN FOR THIS ARTICLE IS TAKEN FROM HBS BRIEF CASES.
Pages: 10
Published: 19/3/2011
Product no: 4284-pdf-eng
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