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Case Study - "Improving Sales for
Distributor"
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Company Description
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Leading Distributor of Irrigation Products. |
Company Situation
and Problem |
The
client had poor performance in one region compared to two others, and had
difficulty sorting out the many explanations offered. Paladin
interviews of headquarters and region executives, field operating personnel,
sales, former employees, current and former customers, and suppliers showed
that among other causes, attempts to control costs and drive down inventories
without corresponding measurement of customer satisfaction had resulted in
lost customers, key employees, widespread problems with employee morale, lost
reputation and lost share.
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| Paladin Actions & Recommendations |
Paladin recommended immediate restoration of inventory levels on key
items to stop customer dissatisfaction and defection, coupled with an
immediate marketing campaign to communicate that they were now listening to
customers and enumerating operational improvements, and followed by a larger
campaign in the spring offering major promotions and inventory guarantee
programs. Underlying, but customer-transparent improvements to the inventory
management system were indicated.
Sales force reorganization was suggested, with an outside expert as VP Sales,
placing more emphasis on new customers and sales accountability. A comp plan
with more upside, but more accountability was drafted. POS Customer Surveys
were recommended, with customer sat results impacting executive comp.
Paladin personnel assessments identified management individuals that
needed coaching or training.
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| Client Results |
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Implementation was sufficiently underway by the beginning
of the spring selling season that sale declines leveled off, giving the
Company time to make further improvements |
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By the fall season, employee morale and retention was
improved, and sales were growing. |
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Significant sales growth in the other Company regions also
occurred, returning the business to overall profitability |
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Focus on Customer Sat Improved Sales |
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