Case 2: On-Time Package Delivery
MKT 452- Sales Management
November 14, 2012
Overall, we felt that Wayne Jacobson – Senior Vice President of Sales performed his responsibilities very well. Furthermore, it was good to see that he was so vested into figuring out the problems of the company. Ultimately, the negative effects that were found could be detrimental to the sales personnel, but further – his position and the company as a whole. Jacobson conducted an effective job analysis by conversing with: current employees/sales staff, managers, and customers. Additionally, Jacobson calling upon local district managers before calling sales representatives or KAM’s displays that he is truly a “team member.” Now we would like to go into the problems, one-by- one, along with what we feel are respectable solutions for On-Time Package Delivery.
On-Time Pack Delivery is a niche company
OTPD delivery services are specific to documents and small packages to be delivered quickly, reliably, and cost effective. Being the first intracity package delivery service to maximize technology gives them a great advantage. OPTD targets a condensed Market of 4 districts: Eastern U.S. cities- New York, Boston, Washington, and Philadelphia. UPS, FedEx, and U.S. Postal Service are considered competition to an extent. However, OPTD markets towards a portion of their customers (legal and consulting firms). “OTPD has carved out a niche by focusing on express intracity package delivery.” The condensed region gives OTPD no reason for decline in salesSolution:
Ron Young founded OTPD as a solution to a problem and generated a business model of highly trained “delivery specialist” . The trained specialist, improved technology services, and great customer service in the package delivery business is what yielded a loyal customer base. REMEMBER: These attributes have helped establish OTPD as a company.
OTPD sales forces needs to refocus on customer service considering these attributes are what initially established loyal customers. Being OTPD was the first company to enter the specific market of quick reliable delivery services, this gives them an advantage. The company needs to refocus on their customer service strategy to remain established before more competitors enter the market. Competition within OTPD?
Setting higher sales standards within the company will provoke the sales force to compete amongst them selves. Lack of competition within the company. Stimulated from-- OTPD targeting only a 4% sales growth, when the national average is 8%, Why? OTPD sales force are given cell phones (unlimited use), laptops, company cars, and outrageous salaries. OPTD needs to focus on exceeding their sales goals before smaller companies similar to Gold Package Delivery Services quickly come about take over the small niche market.
OTPD should consider removing some of the sales forces privileges. While cell phones and laptops are necessities for the delivery services, outrageous salaries and a company car should not be. Taking away a a company car and lowering salaries would trigger sales competition within the company. A company car should only be awarded to those who-
reach a certain sales growth percentage
establish new customers
maintain a certain level of customer service, i.e. quick and reliable
Judy Billings was accused of lacking customer service by Clark, Burton, and Bowers, one of their largest customers, but it was contributed to unreasonable demands by her DM Dan Gunther.
This is placing Judy in a position of the “person in the middle” where she has conflicting expectations of her responsibility
To solve this problem the job roles need to be laid out clearly for each employee to understand. There should be no confusion when it comes...
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