SDM Case Analysis IMAGE International

Indian Institute of Management Kozhikode

IMAGE International Group V

ROHIT NATH PGP/14/172

GAURAV PATANGE PGP/14/211

MANGESH PATIL PGP/14/217

MAHTAAB KAJLA PGP/14/280

SACHIN KUMAR PGP/14/294

Situation Analysis 

IMAGE International manufactured a wide range of office copiers priced from $12,700 to $500,000



Company has 6%(small but profitable) market share



Preferred by customers who value speed, definition, highspeed output and styling



Company’s US sales force was one of the best in the office machine industry Collage graduates , young (between 28-40yrs) and Successful Page  2

Marketing of Services | Project Proposal

Sales and Product Training

New Hire

• One month training course twice a year

Sales reps

• One-week refresher course each year • Two days field training visit and performance review each month

No formal performance appraisals on annual or periodic basis

Page  3

Marketing of Services | Project Proposal



Hobart Reynolds (Sales director of IMAGE US) 

  

Philosophy emphasized on

No reports except under special circumstances No assigned quotas Encourage weekly discussion on all work-related problems Page  4

Marketing of Services | Project Proposal

Salary Structure Post

Basic

Commission

Bonus (based on profitability)

District Sales Manager

$130000

NA

$65000

Sales Reps

$78000

$50000

$13000

Expenses reimbursed

Blazers

Medical

($1100 cost)

Benefits

Leased car

Insurance Paternity leaves

Page  5

Marketing of Services | Project Proposal

Moral building schemes

Existing Scheme • Providing golf lessons who wanted to learn • Sales contest- paid trip to Rome, Florence, and Venice • Newsletter • No individual salesmen quotas • Personal objectives to improve their performance • Separate sales standing for rookies

Proposed Scheme • Hole cards poker scheme Page  6

Marketing of Services | Project Proposal

Problem Identification

To evaluate the existing and proposed moral building schemes; thus selecting the best alternative(s)

7

Sales & Distribution Management| IMAGE International

Evaluation of Alternatives Moral Building Scheme

Arguments

Overall Evaluation

Golf lessons

 Create healthy environment(+)  Very Costly(-)

-

Sales contests

 Encourages healthy competition within sales force (+)  Favorable for short term results (+)  Same employees winning the contests again and again(-)

+

Newsletter

 Create fun element in the company and keeps its employees closely bound (+)  Cheaper method (+)

+

No Individual Quota System

 It reduces burden on best people and some challenge on weaker people (+)  It will not create psychological burden on sales people (+)

+

8

Sales & Distribution Management| IMAGE International

Evaluation of Alternatives Moral Building Scheme

Arguments

Overall Evaluation

Personal objectives

 Instead of quota, personal objectives creates more achievable goals (+)  Healthy competition among sales reps (+)

+

Separate sales standing for rookies

 Motivate new hires (+)  Healthy competitive environment (+)

+

Hole cards poker scheme

 Innovative way to create motivation (+)  Providing opportunity to weaker employees (+)  Neat and unbiased incentive scheme (+)

+

9

Sales & Distribution Management| IMAGE International

Recommendations 

Shorter product life cycle and huge number of competitors in the market makes personal sales service a primary point of competitive differentiation and leverage



Reynolds should continue with his moral building schemes

Page  10

Marketing of Services | Project Proposal

Q&A

11

Sales & Distribution Management| IMAGE International