OpportunityThe North American operation of a leading Japanese consumer electronics company questioned the efficacy of its US sales organization that had evolved over a period of time. The company had been utilizing 14 different manufacturer’s representative firms throughout the US to actively sell its products. Not entirely satisfied with either total sales results or market penetration the client considered the change to an entirely factory-employed direct sales force, potentially retaining the established division of the country into 14 regions.
Action
In the course of a time-limited consulting contract, plus service charge per placement, we were asked to assess the current sales organization, review the considered structural changes and engage in the acquisition of the required resources.
Results
At the end of three months we completed the task in close cooperation with the client, which resulted in a comprehensive revision of the US sales organization, including the following aspects: Review of each territory, existing personnel and resources, as well as a detailed analysis of market data and internal sales and penetration results; Review of all current rep contracts.
We concluded that any comprehensive change in the organizational structure should occur simultaneously, not sequentially. Based on detailed market research and associated cost-benefit analysis, it was determined to retain independent reps in certain territories, while providing them with a more targeted support and training was the most efficient approach, whereas the replacement with employed sales engineers in other, potentially more significant territories became apparent. Subsequently, we recruited six company-employed sales engineers, on-board to start on the first business day of the next calendar year. Since then, sales growth and market penetration substantially increased, and the company continues to successfully operate a “mixed” field sales organization that has expanded nationally.
We would be glad to share details of our work without identifying the client’s name or specifics which would allow identification of the company or its competitors.
