The Valley Winery Case Study
The Valley Winery is one of the nations largest privately help companies, and the top domestic producer of wine selling more than 40 percent of all wine produced in the United States. Valleys success is largely due to their high quality wine sold for a lower price, and a very aggressive and innovative sales force. Sales groups are separated into three main categories:
1) Liquor stores and bars
2) Restaurants, resorts, hotels, and motels
3) Chain Division
The company has experienced many sales organization changes in their San Francisco chain division; recently focusing on the importance of key customers classified as major accounts. Pat Waller was hired as sales manager of the San Francisco region’s branch, where he manages two are managers. The two area manages are responsible for nine district mangers, who supervise five to six sales reps each. Each sales rep is responsible for a certain number of stores from all major grocery chains, caring to all their merchandising, service, and miscellaneous needs related to Valley Winery. Although the company has had favorable sales results in the San Francisco Region in recent years, Waller recognizes problems within the company and is concerned that the company will have difficulty in maintain their current status with the rapid increase of competition within the wine industry.
Key problems in the management of Valley Winery consist of but not limited to:
• No experienced sales reps
• Sales reps aggressive attitudes o Spraying hairspray on competitors wine bottles to look “dusty”
• Hiring and training processes
• Lack of leadership in management
• Non constant administrative structure o Different levels of pay grades by district
• No respect for private (home) life o District managers calling Murphy and complaining late at night about issues that could have been taken care of early that day
• No vision for future
• High turnover rate, nearly 100% o Most experienced guy being 2 years but most not even
1) Liquor stores and bars
2) Restaurants, resorts, hotels, and motels
3) Chain Division
The company has experienced many sales organization changes in their San Francisco chain division; recently focusing on the importance of key customers classified as major accounts. Pat Waller was hired as sales manager of the San Francisco region’s branch, where he manages two are managers. The two area manages are responsible for nine district mangers, who supervise five to six sales reps each. Each sales rep is responsible for a certain number of stores from all major grocery chains, caring to all their merchandising, service, and miscellaneous needs related to Valley Winery. Although the company has had favorable sales results in the San Francisco Region in recent years, Waller recognizes problems within the company and is concerned that the company will have difficulty in maintain their current status with the rapid increase of competition within the wine industry.
Key problems in the management of Valley Winery consist of but not limited to:
• No experienced sales reps
• Sales reps aggressive attitudes o Spraying hairspray on competitors wine bottles to look “dusty”
• Hiring and training processes
• Lack of leadership in management
• Non constant administrative structure o Different levels of pay grades by district
• No respect for private (home) life o District managers calling Murphy and complaining late at night about issues that could have been taken care of early that day
• No vision for future
• High turnover rate, nearly 100% o Most experienced guy being 2 years but most not even